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Rep. Michael J. Madigan
Filed: 7/5/2007
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LRB095 01509 HLH 37923 a |
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| AMENDMENT TO HOUSE BILL 2055
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| AMENDMENT NO. ______. Amend House Bill 2055 by replacing |
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| everything after the enacting clause with the following:
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| "Section 5. The Illinois Lottery Law is amended by changing |
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| Sections 2, 3, 4, 5, 6, 7.1, 7.2, 7.3, 7.4, 7.5, 7.6, 7.8, |
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| 7.8a, 7.11, 8, 8.1, 9, 10, 10.1, 10.1a, 10.2, 10.3, 10.4, 10.5, |
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| 10.6, 10.7, 11, 12, 13, 14, 14.2, 14.3, 15, 16, 17, 19, 20, 21, |
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| 21.2, 21.3, 21.5, 24, 25, 26, 27, and 28 and by adding Sections |
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| 2.1, 6.1, and 21.7 as follows:
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| (20 ILCS 1605/2) (from Ch. 120, par. 1152)
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| Sec. 2. This Act is enacted to implement and establish |
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| within the State
a lottery to be conducted
operated by the |
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| State, whether that lottery is operated and managed by the |
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| State or by a third party pursuant to a Management and |
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| Concession Agreement. The operations of a lottery are unique |
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| activities for State government, and private management will |
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| best enable the lottery to be operated in an entrepreneurial |
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| and business-like manner, thereby maximizing value for and |
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| benefit to the citizens of the State. Any such private manager |
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| shall be accountable to the State through a comprehensive |
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| system of State regulation and enduring operational oversight. |
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| The State's ongoing conduct of the Lottery throughout the term |
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| of a Concession shall act to promote and ensure the integrity, |
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| security, honesty, and fairness of the Lottery's operation and |
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| administration.
the entire net proceeds of which
are to be used |
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| for the support of the State's Common School Fund,
except as |
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| provided in Sections 21.2
and 21.5 and 21.6.
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| (Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05; |
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| revised 8-23-05.)
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| (20 ILCS 1605/2.1 new) |
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| Sec. 2.1. Third-party management authorized. |
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| Notwithstanding any provision of this Act or other applicable |
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| law to the contrary, the State may, pursuant to a competitive |
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| bidding process, enter into a Management and Concession |
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| Agreement with a third party pursuant to which that party may |
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| be authorized to manage or operate the Lottery, and further |
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| pursuant to which that party may retain certain Lottery |
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| revenues in consideration of the payment of a fee or fees to |
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| the State for that right, provided that the Concession is |
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| managed and operated in accordance with the provisions of this |
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| Act and that the State at all times retains control of the |
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| Lottery and exercises supervisory authority over the |
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| Concession sufficient to implement the terms of the Management |
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| and Concession Agreement and to effect the purposes of this |
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| Act. The Lottery shall remain, for so long as a Concessionaire |
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| manages and operates the Concession in accordance with |
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| provisions of this Act, a Lottery conducted by the State. |
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| The terms of a Management and Concession Agreement shall |
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| include, without limitation, all of the following:
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| (a) The length of term of the Concession shall not |
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| exceed 75 years.
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| (b) The consideration paid to the State for a |
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| Concessionaire's right to manage and operate the |
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| Concession shall be not less than $10,000,000,000.
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| (c) At least 19% of the value of all contracts and |
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| agreements entered into by the Concessionaire for goods and |
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| services in connection with its management and operation of |
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| the Lottery, other than contracts or agreements with sales |
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| agents or technical operators, must be awarded to |
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| businesses that are a "minority owned business" or a |
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| "female owned business" as those terms are defined in the |
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| Business Enterprise for Minorities, Females, and Persons |
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| with Disabilities Act. For purposes of this item (c), all |
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| contracts entered into by a technical operator shall be |
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| deemed to be contracts entered by the Concessionaire. A |
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| contract by which the Concessionaire retains a technical |
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| operator shall be exempt from the requirements of this item |
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| (c). For purposes of this item (c), a technical operator |
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| means an entity that, pursuant to the terms of this |
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| amendatory Act of the 95th General Assembly and the |
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| Concession Agreement, is substantially involved in the |
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| day-to-day operations of the Lottery in a manner that |
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| includes (i) the design and production of lottery games or |
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| lottery game equipment, (ii) the provision and maintenance |
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| of lottery equipment, (iii) the operation and monitoring of |
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| lottery games or other regulated gaming activities, (iv) |
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| the development and maintenance of a distribution network, |
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| or (v) the verification of game outcomes, or an entity |
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| responsible for other significant regulated gaming |
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| activities.
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| All of the acts of officials authorized by the State that |
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| are in conformity with the intent and purposes of this |
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| amendatory Act of the 95th General Assembly, whether heretofore |
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| or hereafter taken or done, shall be and are ratified, |
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| confirmed, authorized, and approved hereby in all respects. To |
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| the extent any provision of the Illinois Procurement Code (30 |
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| ILCS 500/) is in conflict with this amendatory Act of the 95th |
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| General Assembly insofar as it relates to any Transaction |
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| Documents, the provisions of this amendatory Act shall be |
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| controlling.
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| This amendatory Act of the 95th General Assembly shall be |
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| construed liberally to effect the purposes of the Illinois |
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| Lottery Law as amended by this amendatory Act and to provide |
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| for the implementation and oversight of any Management and |
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| Concession Agreement that the State may enter into pursuant to |
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| the terms of this amendatory Act.
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| (20 ILCS 1605/3) (from Ch. 120, par. 1153)
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| Sec. 3. Definitions.
For the purposes of this Act:
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| a. "Lottery" or "State Lottery" means the lottery or |
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| lotteries
established and operated pursuant to this Act.
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| b. "Board" means the Lottery Control Board created by this |
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| Act.
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| c. "Department" means the Department of Revenue.
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| d. "Director" means the Director of Revenue.
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| e. "Chairman" means the Chairman of the Lottery Control |
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| Board.
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| f. "Multi-state game directors" means such persons, |
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| including the
Superintendent, as may be designated by an
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| agreement between the Division and one or more additional
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| lotteries operated under the laws of another state or states.
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| g. "Division" means the Division of the State Lottery of |
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| the Department of Revenue.
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| h. "Superintendent" means the Superintendent of the |
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| Division of the State Lottery of the Department of Revenue.
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| i. "Concession" means the right of a Concessionaire to |
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| manage or operate the Lottery pursuant to the terms of a |
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| Management and Concession Agreement and this Act.
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| j. "Management and Concession Agreement" means that |
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| agreement and all schedules, exhibits, and attachments |
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| thereto, entered into pursuant to a competitive bidding process |
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| and pursuant to which the State may grant a license or other |
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| contractual right to manage or operate the Lottery to a |
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| Concessionaire, and further pursuant to which a Concessionaire |
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| may receive certain Lottery ticket or share sales and related |
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| proceeds in consideration of the payment of a fee or fees to |
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| the State.
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| k. "Concessionaire" means a third party that manages or |
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| operates the Lottery pursuant to a Management and Concession |
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| Agreement then in effect.
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| l. "Conducted by the State" means the management and |
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| operation of the Lottery pursuant to the terms of this Act, |
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| whether directly by the State or by a Concessionaire pursuant |
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| to the terms of a Management and Concession Agreement as |
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| provided for in this amendatory Act of the 95th General |
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| Assembly. The Concessionaire shall at all times remain |
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| accountable to the State and the people of the State through a |
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| comprehensive system of State regulation and enduring |
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| operational oversight, which shall include, without |
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| limitation, the Concessionaire's regular provision and the |
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| State's ongoing review and analysis of audits, reports, and |
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| financial disclosures as required by this amendatory Act of the |
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| 95th General Assembly.
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| (Source: P.A. 94-776, eff. 5-19-06.)
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| (20 ILCS 1605/4) (from Ch. 120, par. 1154)
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| Sec. 4. Department established.
The Department of the |
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| Lottery is
established to implement and regulate the State |
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| Lottery in the manner
provided in this Act. |
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| In accordance with Executive Order No. 9 (2003), the |
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| Division of the State Lottery is established within the |
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| Department of Revenue. Unless otherwise provided by law, the |
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| Division of the State Lottery shall be subject to and governed |
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| by all of the laws and rules applicable to the Department.
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| (Source: P.A. 94-776, eff. 5-19-06.)
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| (20 ILCS 1605/5) (from Ch. 120, par. 1155)
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| Sec. 5. Superintendent.
The Division shall be under
the |
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| supervision and direction
of a Superintendent, who
shall be a |
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| person qualified by
training and experience to perform the |
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| duties required by this Act. The
Superintendent shall be |
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| appointed by the Governor, by and with the advice
and consent |
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| of the Senate. The term of office of the Superintendent shall
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| expire on the third Monday of January in odd numbered years |
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| provided that
he or she shall hold office until a successor is |
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| appointed and qualified.
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| Any vacancy occurring in the office of the Superintendent |
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| shall be
filled in the same manner as the original appointment.
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| The Superintendent shall devote his or her entire time and |
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| attention to the
duties of the office and shall not be engaged |
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| in any other profession or
occupation. The Superintendent shall |
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| receive such salary as shall be provided by law.
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| (Source: P.A. 94-776, eff. 5-19-06.)
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| (20 ILCS 1605/6) (from Ch. 120, par. 1156)
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| Sec. 6. Lottery Control Board; creation; appointment; |
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| chairman; terms; vacancies; removal; compensation; meetings; |
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| quorum.
There is hereby created an independent board to be |
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| known as the
Lottery Control Board, consisting of 5 members, |
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| all of whom shall be
citizens of the United States and |
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| residents of this State and shall be
appointed by the Governor |
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| with the advice and consent of the Senate. No
more than 3 of |
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| the 5 members shall be members of the same political
party. A |
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| chairman of the Board shall be chosen annually from the
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| membership of the Board by a majority of the members of the |
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| Board at the
first meeting of the Board each fiscal year.
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| Initial members shall be appointed to the Board by the |
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| Governor as
follows: one member to serve until July 1, 1974, |
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| and until his successor
is appointed and qualified; 2 members |
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| to serve until July 1, 1975, and
until their successors are |
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| appointed and qualified; 2 members to serve
until July 1, 1976, |
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| and until their successors are appointed and
qualified. As |
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| terms of members so appointed expire, their successors
shall be |
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| appointed for terms to expire the first day in July 3 years
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| thereafter, and until their successors are appointed and |
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| qualified.
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| Any vacancy in the Board occurring for any reason other |
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| than
expiration of term, shall be filled for the unexpired term |
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| in the same
manner as the original appointment.
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| Any member of the Board may be removed by the Governor for |
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| neglect of
duty, misfeasance, malfeasance, or nonfeasance in |
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| office.
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| Board members shall receive as compensation for their |
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| services $100
for each day they are in attendance at any |
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| official board meeting, but in
no event shall members receive |
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| more than $1,200 per year. They
shall receive no other |
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| compensation for their services, but shall be
reimbursed for |
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| necessary traveling and other reasonable expenses
incurred in |
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| the performance of their official duties. Each member shall
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| make a full financial disclosure upon appointment.
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| The Board shall hold at least one meeting each quarter of |
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| the fiscal
year. In addition,
special meetings may be called by |
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| the Chairman, any 2 Board members, or
the Director of the |
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| Department, upon delivery of 72 hours'
written notice to the |
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| office of each member. All Board meetings shall be
open to the |
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| public pursuant to the Open Meetings Act.
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| Three members of the Board shall constitute a quorum, and 3 |
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| votes
shall be required for any final determination by the |
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| Board. The Board
shall keep a complete and accurate record of |
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| all its meetings.
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| (Source: P.A. 84-1128.)
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| (20 ILCS 1605/6.1 new) |
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| Sec. 6.1. Lottery Control Board's Authorization to |
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| Implement the Act and Oversee Concession. The term of each |
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| appointed member of the Board who is in office on May 31, 2007 |
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| shall terminate at the close of business on that date or when |
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| all of the new members to be initially appointed under this |
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| amendatory Act of the 95th General Assembly have been appointed |
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| by the Governor, whichever occurs later. |
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| Beginning on June 1, 2007 or when all of the new members of |
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| the Board to be initially appointed under this amendatory Act |
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| of the 95th General Assembly have been appointed by the |
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| Governor, whichever occurs later, the Board shall consist of 7 |
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| members, all of whom shall be citizens of the United States and |
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| residents of this State and shall be appointed by the Governor |
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| with the advice and consent of the Senate. No more than 4 of |
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| the 7 members shall be members of the same political party. A |
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| chairman of the Board shall be chosen annually from the |
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| membership of the Board by a majority of the members of the |
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| Board at the first meeting of the Board each fiscal year.
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| Members shall be appointed to the Board by the Governor as |
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| follows: 2 members to serve until July 1, 2009, and until their |
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| successors are appointed and qualified; 2 members to serve |
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| until July 1, 2010, and until their successors are appointed |
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| and qualified; 3 members to serve until July 1, 2011, and until |
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| their successors are appointed and qualified. As terms of |
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| members so appointed expire, their successors shall be |
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| appointed for terms to expire the first day in July 3 years |
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| thereafter, and until their successors are appointed and |
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| qualified. Members of the Board serving prior to the effective |
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| date of this amendatory Act of the 95th General Assembly shall |
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| be discharged of their duties and replaced by members appointed |
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| pursuant to this Section in the sequence in which those prior |
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| serving members were appointed.
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| Any vacancy in the Board occurring for any reason other |
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| than expiration of term shall be filled for the unexpired term |
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| in the same manner as the original appointment.
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| Any member of the Board may be removed by the Governor for |
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| neglect of duty, misfeasance, malfeasance, or nonfeasance in |
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| office.
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| Board members shall receive as compensation for their |
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| services $250 for each day they are in attendance at any |
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| official board meeting, but in no event shall members receive |
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| more than $3,000 per year. They shall receive no other |
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| compensation for their services, but shall be reimbursed for |
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| necessary traveling and other reasonable expenses incurred in |
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| the performance of their official duties. All such compensation |
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| and reimbursement shall be paid from proceeds of the |
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| Concession.
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| The Board shall hold at least one meeting each quarter of |
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| the fiscal year. In addition, special meetings may be called by |
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| the chairman, any 4 Board members, or the Director of the |
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| Department, upon delivery of 72 hours' written notice to each |
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| member. All Board meetings shall be open to the public pursuant |
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| to the Open Meetings Act.
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| Four members of the Board shall constitute a quorum, and 4 |
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| votes shall be required for any final determination by the |
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| Board. The Board shall keep a complete and accurate record of |
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| all its meetings.
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| The Board shall have general responsibility for the |
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| implementation of this Act and the oversight and implementation |
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| of any Management and Concession Agreement. The Board shall |
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| have jurisdiction and oversight over all Lottery and Concession |
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| operations governed by this Act and shall have all powers |
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| necessary and proper to fully and effectively execute the |
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| provisions of this Act. Its duties include, without limitation, |
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| the following:
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| (1) to conduct all hearings pertaining to rules and |
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| regulations promulgated under this Act;
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| (2) to promulgate such rules and regulations as in its |
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| judgment may be necessary to protect or enhance the |
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| credibility and integrity of the Lottery and enforce the |
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| provisions of the Management and Concession Agreement |
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| authorized by this Act and the regulatory process under |
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| this Act;
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| (3) to be present through its inspectors and agents any |
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| time Lottery operations are conducted pursuant to this Act |
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| or the Management and Concession Agreement for the purpose |
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| of determining compliance therewith, receiving complaints |
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| from the public, and conducting such other investigations |
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| into the conduct of Lottery games and operations and the |
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| maintenance of all Lottery equipment as from time to time |
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| the Board may deem necessary and proper;
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| (4) to implement and administer the Concession and |
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| Management Agreement, including, without limitation, the |
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| supervision and administration of the operation of the |
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| Lottery in accordance with this Act, the rules and |
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| regulations of the Board adopted hereunder, and the terms |
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| of the Management and Concession Agreement;
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| (5) to investigate parties providing Concession and |
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| Lottery-related services;
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| (6) to have jurisdiction and supervision over all |
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| Lottery and Concession operations;
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| (7) to promulgate rules and regulations for the purpose |
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| of administering the provisions of this Act and the |
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| Management and Concession Agreement and to prescribe |
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| rules, regulations, and conditions under which the Lottery |
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| shall be conducted; those rules and regulations are to |
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| provide for the prevention of practices detrimental to the |
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| public interest and for the best interests of citizens of |
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| the State, including rules and regulations regarding |
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| inspection;
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| (8) to enter the office, facilities, or other places of |
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| business of a Concessionaire, where evidence of the |
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| compliance or noncompliance with the provisions of this Act |
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| or the Management and Concession Agreement is likely to be |
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| found;
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| (9) to investigate alleged violations of this Act or |
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| the rules of the Board and to take appropriate disciplinary |
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| action against a Concessionaire and its contractors and |
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| licensees for a violation, or institute appropriate legal |
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| action for enforcement, or both;
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| (10) to ensure that any Concessionaire maintains |
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| appropriate standards for Lottery ticket vendors;
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| (11) to require that records, including financial or |
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| other statements of any Concessionaire, manager, or |
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| operator under this Act, shall be kept in such manner as |
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| prescribed by the Board and that any such Concessionaire, |
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| manager, or operator regularly submit to the Board a |
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| balance sheet and profit and loss statement, list of the |
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| stockholders or other persons having a beneficial interest |
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| in such amounts as may be determined by the Board, and any |
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| other information the Board deems necessary in order to |
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| effectively administer this Act and all rules, |
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| regulations, orders, and final decisions promulgated under |
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| this Act;
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| (12) to conduct hearings, issue subpoenas for the |
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| attendance of witnesses and subpoenas duces tecum for the |
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| production of books, records, and other pertinent |
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| documents in accordance with the Illinois Administrative |
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| Procedure Act, and to administer oaths and affirmations to |
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| the witnesses, when, in the judgment of the Board, it is |
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| necessary to administer or enforce this Act or the Board |
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| rules;
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| (13) to hire employees to gather information, conduct |
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| investigations, and carry out any other tasks contemplated |
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| under this Act;
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| (14) to delegate the execution of any of its powers |
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| under this Act for the purpose of administering and |
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| enforcing this Act and its rules and regulations; and
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| (15) to take any other action as may be reasonable or |
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| appropriate to enforce this Act and its rules and |
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| regulations.
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| The Board may seek and shall receive the cooperation of the |
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| Department of State Police in conducting background |
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| investigations of parties and in fulfilling its |
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| responsibilities under this Section. Costs incurred by the |
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| Department of State Police as a result of that cooperation |
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| shall be paid by the Board in conformance with the requirements |
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| of Section 2605-400 of the Department of State Police Law.
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| In the event that the State shall enter into a Management |
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| and Concession Agreement, the Board may instruct the |
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| Superintendent, on behalf of the Concessionaire, to enter into |
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| an agreement or agreements with the management of state |
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| lotteries operated pursuant to the laws of other states for the |
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| purpose of creating and operating a multi-state lottery game |
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| wherein a separate and distinct prize pool would be combined to |
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| award larger prizes to the public than could be offered by the |
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| several state lotteries individually. In the event that the |
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| State shall enter into a Management and Concession Agreement, |
3 |
| no tickets or shares offered in connection with a multi-state |
4 |
| lottery game shall be sold within the State, except those |
5 |
| offered by the Concessionaire pursuant to the terms of the |
6 |
| Management and Concession Agreement and this amendatory Act of |
7 |
| the 95th General Assembly. No such agreement shall purport to |
8 |
| pledge the full faith and credit of the State of Illinois. No |
9 |
| multi-state game prize awarded to a nonresident of Illinois, |
10 |
| with respect to a ticket or share purchased in a state other |
11 |
| than the State of Illinois, shall be deemed to be a prize |
12 |
| awarded under this Act for the purpose of taxation under the |
13 |
| Illinois Income Tax Act.
|
14 |
| (20 ILCS 1605/7.1) (from Ch. 120, par. 1157.1)
|
15 |
| Sec. 7.1. Rules and regulations.
The Department may
shall
|
16 |
| promulgate such rules and
regulations governing the |
17 |
| establishment
and operation of a State lottery as it deems |
18 |
| necessary to carry out the
purposes of this Act. Such rules and |
19 |
| regulations shall be subject to the
provisions of The Illinois |
20 |
| Administrative Procedure Act. If the State enters into a |
21 |
| Management and Concession Agreement pursuant to which a |
22 |
| Concessionaire is authorized to manage or operate the Lottery, |
23 |
| the Board shall assume the Department's authorities and |
24 |
| discharge the Department's duties under this Section and |
25 |
| Section 7.2 of this Act. The Division may
shall issue written |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
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|
1 |
| game rules, play instructions, directives, operations manuals, |
2 |
| brochures, or any other publications necessary to conduct |
3 |
| specific games, as authorized by rule by the Department.
Any |
4 |
| written game rules, play instructions, directives, operations |
5 |
| manuals,
brochures, or other game publications issued by the |
6 |
| Division that relate
to a specific lottery game shall be |
7 |
| maintained as a public record in the
Division's principal |
8 |
| office, and made available for public inspection and
copying |
9 |
| but shall be exempt from the rulemaking procedures of the |
10 |
| Illinois
Administrative Procedure Act. However, when such |
11 |
| written materials contain
any policy of general applicability, |
12 |
| the Division shall formulate and
adopt such policy as a rule in |
13 |
| accordance with the provisions of the
Illinois Administrative |
14 |
| Procedure Act. In addition, the Division shall
publish each |
15 |
| January in the Illinois Register a list of all game-specific
|
16 |
| rules, play instructions, directives, operations manuals, |
17 |
| brochures, or
other game-specific publications issued by the |
18 |
| Division during the
previous year , if any, and instructions |
19 |
| concerning how the public may obtain copies
of these materials |
20 |
| from the Division. In the event that State enters into a |
21 |
| Management and Concession Agreement, this Section 7.1 shall not |
22 |
| apply and the Concessionaire shall be permitted to offer game |
23 |
| specific material in accordance with the provisions of this |
24 |
| Act, the rules and regulations of the Board adopted hereunder, |
25 |
| and the terms of the Management and Concession Agreement.
|
26 |
| (Source: P.A. 94-776, eff. 5-19-06.)
|
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| (20 ILCS 1605/7.2) (from Ch. 120, par. 1157.2)
|
2 |
| Sec. 7.2. Matters included in rules and regulations.
The |
3 |
| rules and regulations of the Department or, if the State enters |
4 |
| into a Management and Concession Agreement pursuant to which a |
5 |
| Concessionaire is authorized to manage or operate the lottery, |
6 |
| the Board may include, but
shall not be limited to, the |
7 |
| following:
|
8 |
| (1) The types of lotteries to be conducted . ;
|
9 |
| (2) The price, or prices, of tickets or shares in the |
10 |
| lottery . ;
|
11 |
| (3) The numbers and sizes of the prizes on the winning |
12 |
| tickets or
shares . ;
|
13 |
| (4) The manner of selecting the winning tickets or shares . ;
|
14 |
| (5) The manner of payment of prizes to the holders of |
15 |
| winning
tickets or shares . ;
|
16 |
| (6) The frequency of the drawing or selections of winning |
17 |
| tickets or
shares, without limitation . ;
|
18 |
| (7) Without limit to number, the type or types of locations |
19 |
| at which
tickets or shares may be sold . ;
|
20 |
| (8) The method to be used in selling tickets or shares . ;
|
21 |
| (9) The manner and amount of compensation, if any, to be |
22 |
| paid
licensed sales agents necessary to provide for the |
23 |
| adequate availability
of tickets or shares to prospective |
24 |
| buyers and for the convenience of
the public . ;
|
25 |
| (10) (Blank).
The apportionment of the total revenues |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
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|
1 |
| accruing from the sale
of lottery tickets or shares and from |
2 |
| all other sources among (i) the
payment of prizes to the |
3 |
| holders of winning tickets or shares, (ii) the
payment of costs |
4 |
| incurred in the operation and administration of the
lottery, |
5 |
| including the expenses of the Department and the costs |
6 |
| resulting
from any contract or contracts entered into for |
7 |
| promotional, advertising
or operational services or for the |
8 |
| purchase or lease of lottery
equipment and materials, and (iii) |
9 |
| for monthly transfers to the Common
School Fund. The net |
10 |
| revenues accruing from the sale of lottery tickets
shall be |
11 |
| determined by deducting from total revenues the payments |
12 |
| required
by paragraphs (i) and (ii) of this
subsection.
|
13 |
| (11) Such other matters necessary or desirable for the |
14 |
| efficient and
economical operation and administration of the |
15 |
| lottery or for the implementation and oversight of any |
16 |
| Management and Concession Agreement pursuant to which a |
17 |
| Concessionaire is authorized to manage or operate the Lottery
|
18 |
| and for the
convenience of the purchasers of tickets or shares |
19 |
| and the holders of
winning tickets or shares.
|
20 |
| Any rules and regulations of the Department with respect to
|
21 |
| monthly transfers
to the Common School Fund are subject to |
22 |
| Section 21.2.
|
23 |
| (Source: P.A. 84-1128.)
|
24 |
| (20 ILCS 1605/7.3) (from Ch. 120, par. 1157.3)
|
25 |
| Sec. 7.3. Hearings on violations; other hearings.
The Board |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| shall designate Hearing Officers who shall conduct
hearings |
2 |
| upon complaints charging violations of this Act or of |
3 |
| regulations
thereunder, and such other hearings as may be |
4 |
| provided by Department rule.
The Board may hear appeals from |
5 |
| the recommended decisions of its
Hearing Officers in accordance |
6 |
| with procedures established
by Department rule.
Whenever the |
7 |
| Department issues a Notice of Assessment under Section 21 of
|
8 |
| this Act, the lottery sales agent may protest such Notice by |
9 |
| filing a
request for hearing within 20 days of the date of such |
10 |
| Notice.
|
11 |
| (Source: P.A. 85-1224; 86-1475.)
|
12 |
| (20 ILCS 1605/7.4) (from Ch. 120, par. 1157.4)
|
13 |
| Sec. 7.4. Studies and investigations of lottery.
The |
14 |
| Department or, if the State enters into a Management and |
15 |
| Concession Agreement pursuant to which a Concessionaire is |
16 |
| authorized to manage or operate the Lottery, the Board shall |
17 |
| carry on a continuous study and
investigation of the lottery
|
18 |
| throughout the State (1) for the purpose of ascertaining any |
19 |
| defects in
this Act or in the rules and regulations issued |
20 |
| under this Act whereby any
abuses in the administration and |
21 |
| operation of the lottery or any evasion of
this Act or the |
22 |
| rules and regulations may arise or be practiced, (2) for
the |
23 |
| purpose of formulating recommendations for changes in this Act |
24 |
| and the
rules and regulations promulgated hereunder to prevent |
25 |
| such abuses and
evasions, (3) to guard against the use of this |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| Act and the rules and
regulations issued hereunder as a cloak |
2 |
| for the carrying on of organized
gambling and crime, and (4) to |
3 |
| insure that the law and rules and
regulations shall be in such |
4 |
| form and be so administered as to serve the
true purposes of |
5 |
| this Act.
|
6 |
| (Source: P.A. 84-1128.)
|
7 |
| (20 ILCS 1605/7.5) (from Ch. 120, par. 1157.5)
|
8 |
| Sec. 7.5. Reports on matters requiring changes in law.
The |
9 |
| Board shall report to the Governor, the
Attorney General, the |
10 |
| Speaker
of the House, the President of the Senate, the minority |
11 |
| leaders of both
houses, and such other State officers as from |
12 |
| time to time it deems
appropriate, any matters which it deems |
13 |
| to require an immediate change in
the laws of this State in |
14 |
| order to prevent abuses and evasions of this Act
or rules and |
15 |
| regulations promulgated thereunder or to rectify undesirable
|
16 |
| conditions in connection with the administration or operation |
17 |
| of the
lottery.
|
18 |
| (Source: P.A. 84-1128.)
|
19 |
| (20 ILCS 1605/7.6) (from Ch. 120, par. 1157.6)
|
20 |
| Sec. 7.6. Recommendations.
The Board shall advise and make |
21 |
| recommendations to the
Superintendent or the Director |
22 |
| regarding the functions and operations of the State Lottery. A |
23 |
| copy of all
such recommendations shall also be forwarded to the |
24 |
| Governor, the Attorney
General, the Speaker of the House, the |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| President of the Senate and the
minority leaders of both |
2 |
| houses.
|
3 |
| (Source: P.A. 94-776, eff. 5-19-06.)
|
4 |
| (20 ILCS 1605/7.8) (from Ch. 120, par. 1157.8)
|
5 |
| Sec. 7.8. Annual report; report as public report.
The |
6 |
| Department , or, if the State enters into a Management and |
7 |
| Concession Agreement pursuant to which a Concessionaire is |
8 |
| authorized to manage or operate the Lottery, the Board shall |
9 |
| make an annual report regarding the work
of the Board to the
|
10 |
| Governor, the Speaker of the House, the President of the |
11 |
| Senate, and the
minority leaders of both houses, such report to |
12 |
| be a public report.
|
13 |
| (Source: P.A. 84-1128.)
|
14 |
| (20 ILCS 1605/7.8a) (from Ch. 120, par. 1157.8a)
|
15 |
| Sec. 7.8a. Advertising policy.
The Board shall establish |
16 |
| advertising policy to ensure that
advertising content and |
17 |
| practices do not target with the intent to exploit specific |
18 |
| groups
or economic classes of people, and that its content is |
19 |
| accurate and not
misleading. The Board shall review, at least |
20 |
| quarterly, all past
advertising and proposed concepts for major |
21 |
| media campaigns to ensure that
they do not target with the |
22 |
| intent to exploit specific groups or economic classes of
|
23 |
| people, and that their content is accurate and not misleading. |
24 |
| If the Board
finds that advertising conflicts with such policy, |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| it shall have the
authority to direct the Department to cease |
2 |
| that advertising. If the State enters into a Management and |
3 |
| Concession Agreement pursuant to which a Concessionaire is |
4 |
| authorized to manage or operate the Lottery and the |
5 |
| Concessionaire has the right to undertake marketing and |
6 |
| advertising activities, the Concessionaire shall submit, for |
7 |
| the Board's review of content and determination of compliance |
8 |
| with this Section, all marketing and advertising materials |
9 |
| pursuant to such rules and policies as the Board may promulgate |
10 |
| from time to time. If the Board finds that action proposed or |
11 |
| taken by the Concessionaire conflicts with those rules or |
12 |
| policies, the Board shall have the authority to direct the |
13 |
| Concessionaire to cease or refrain from taking that action.
|
14 |
| (Source: P.A. 85-183.)
|
15 |
| (20 ILCS 1605/7.11) (from Ch. 120, par. 1157.11)
|
16 |
| Sec. 7.11. (Repealed.)
The Division may establish and |
17 |
| collect nominal charges
for promotional products ("premiums") |
18 |
| and other promotional materials
produced or acquired by the |
19 |
| Division as part of its advertising and
promotion activities. |
20 |
| Such premiums or other promotional materials may be
sold to |
21 |
| individuals, government agencies and not-for-profit |
22 |
| organizations,
but not to for-profit enterprises for the |
23 |
| purpose of resale. Other State
agencies shall be charged no |
24 |
| more than the cost to the Division of the
premium or |
25 |
| promotional material. All proceeds from the sale of premiums or
|
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| promotional materials shall be deposited in the State Lottery |
2 |
| Fund in the
State Treasury.
|
3 |
| (Source: P.A. 94-776, eff. 5-19-06.)
|
4 |
| (20 ILCS 1605/8) (from Ch. 120, par. 1158)
|
5 |
| Sec. 8. Compelling appearance of witnesses and production |
6 |
| of documents; oaths and affirmations; dispositions.
In |
7 |
| connection with any hearing held pursuant to Section 6.1 or
7.3 |
8 |
| of this Act, the Board, or any Hearing Officer appointed by the
|
9 |
| Board, may subpoena and compel the appearance of witnesses and
|
10 |
| production of documents, papers, books, records and other |
11 |
| evidence before
it in any matter over which it has |
12 |
| jurisdiction, control or supervision.
The Board, or any |
13 |
| appointed Hearing Officer, shall have the
power to administer
|
14 |
| oaths and affirmations to persons
whose testimony is required. |
15 |
| If a person subpoenaed to attend in any such
proceeding or |
16 |
| hearing fails to obey the command of the subpoena without
|
17 |
| reasonable cause, or if a person in attendance in any such |
18 |
| proceeding or
hearing refuses, without lawful cause, to be |
19 |
| examined or to answer a legal
or pertinent question or to |
20 |
| exhibit any books, account, record or other
document when |
21 |
| ordered so to do by the Board or its Hearing Officer, the
Board |
22 |
| or Hearing Officer may apply to the
circuit court, upon proof |
23 |
| by affidavit of the facts, for an
order returnable in not less |
24 |
| than 2 nor more than 10 days, or as the court
may prescribe, |
25 |
| directing such person to show cause before the court why
he or |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| she should not comply with such subpoena or such order.
|
2 |
| Upon return of the order, the court shall examine such |
3 |
| person under oath,
and if the court
determines, after giving |
4 |
| such person an opportunity to be heard, that he
or she refused |
5 |
| without legal excuse to comply with such subpoena or such order |
6 |
| of
the Board or Hearing Officer, the court may order such |
7 |
| person to comply
therewith immediately
and any failure to obey |
8 |
| the order of the court may be punished as a
contempt of court.
|
9 |
| All subpoenas and subpoenas duces tecum issued under the |
10 |
| provisions of
this Act may be served by any person of lawful |
11 |
| age. The fees of witnesses
for attendance and travel shall be |
12 |
| the same as the fees of witnesses before
the circuit courts of |
13 |
| this State. When the witness is subpoenaed at the
instance of |
14 |
| the Department or any officer or employee thereof, such fees
|
15 |
| shall be paid in the same manner as other expenses of the |
16 |
| Department. When
the witness is subpoenaed at the
instance of |
17 |
| any other party to any such proceeding, the Department may
|
18 |
| require that the cost of service of the subpoena or subpoena |
19 |
| duces tecum and the fee of
the witness be borne by the party at |
20 |
| whose instance the witness is summoned.
In such case, and on |
21 |
| motion of the Department, the Board or its Hearing
Officer may |
22 |
| require a deposit to cover the cost of such service and witness |
23 |
| fees.
|
24 |
| The Department, or any officer or employee thereof, or any |
25 |
| other party to
a hearing before the Board or its Hearing |
26 |
| Officers, may cause the
depositions of witnesses within the |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| State to be taken in the manner
prescribed by law for like |
2 |
| depositions in civil actions in courts of this
State, and to |
3 |
| that end compel the attendance of witnesses and the
production |
4 |
| of books, papers, records or memoranda.
|
5 |
| (Source: P.A. 85-1224.)
|
6 |
| (20 ILCS 1605/8.1) (from Ch. 120, par. 1158.1)
|
7 |
| Sec. 8.1. Contracts; competitive negotiation.
Contracts |
8 |
| for State Lottery tickets or shares or for other
State Lottery |
9 |
| game related
services shall be
obtained through the
utilization |
10 |
| of competitive negotiation procedures whenever practicable.
|
11 |
| (Source: P.A. 84-268.)
|
12 |
| (20 ILCS 1605/9) (from Ch. 120, par. 1159)
|
13 |
| Sec. 9. Duties of Superintendent.
The Superintendent, as |
14 |
| administrative head of
the Division, shall direct and supervise |
15 |
| all its administrative and
technical activities and shall |
16 |
| report to the Director. In addition to the duties imposed upon |
17 |
| him
elsewhere in this Act, it
shall be the Superintendent's |
18 |
| duty:
|
19 |
| a. To supervise and administer the operation of the lottery |
20 |
| in
accordance with the provisions of this Act or such
rules and |
21 |
| regulations of the Department
adopted thereunder.
|
22 |
| b. To attend meetings of the Board or to appoint a designee |
23 |
| to
attend in his stead.
|
24 |
| c. To employ and direct such personnel in accord with the |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| Personnel Code,
as may be necessary to carry out the purposes |
2 |
| of this Act. The Superintendent may, subject to the approval of |
3 |
| the Director, use the services, personnel, or facilities of the |
4 |
| Department.
In addition, the Superintendent
may by agreement |
5 |
| secure such services as he or she may deem necessary
from any |
6 |
| other department, agency, or unit of the State government, and
|
7 |
| may employ and compensate such consultants and technical |
8 |
| assistants as may
be required and is otherwise permitted by |
9 |
| law.
|
10 |
| d. To license, in accordance with the provisions of |
11 |
| Sections 10 and 10.1
of this Act and the rules and regulations |
12 |
| of the Department
adopted thereunder, or to ensure the |
13 |
| retention, pursuant to the terms of a Management and Concession |
14 |
| Agreement,
as agents to sell lottery tickets such persons as in |
15 |
| his opinion will best
serve the public convenience and promote |
16 |
| the sale of tickets or shares.
The Superintendent may require a |
17 |
| bond from every licensed agent, in such
amount as provided in |
18 |
| the rules and regulations of the Department. Every licensed
|
19 |
| agent shall prominently display his license, or a copy thereof, |
20 |
| as provided
in the rules and regulations of the Department.
|
21 |
| e. To suspend or revoke any license issued pursuant to this |
22 |
| Act or the
rules and regulations promulgated by the Department |
23 |
| thereunder.
|
24 |
| f. To confer regularly as necessary or desirable and not
|
25 |
| less than once
every month with the Lottery Control Board on |
26 |
| the operation and administration
of the Lottery; to make |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| available for inspection by the Board or any member
of the |
2 |
| Board, upon request, all books, records, files, and other |
3 |
| information
and documents of his office; to advise the Board |
4 |
| and recommend such rules
and regulations and such other matters |
5 |
| as he deems necessary and advisable
to improve the operation |
6 |
| and administration of the lottery or the implementation and |
7 |
| oversight of a Management and Concession Agreement .
|
8 |
| g. To enter into contracts for the operation of the |
9 |
| lottery, or any part
thereof, and into contracts for the |
10 |
| promotion of the lottery on behalf of
the Department with any |
11 |
| person, firm or corporation, to perform any of the
functions |
12 |
| provided for in this Act or the rules and regulations |
13 |
| promulgated
thereunder. The Department shall not expend State |
14 |
| funds on a contractual
basis for such functions unless those |
15 |
| functions and expenditures are expressly
authorized by the |
16 |
| General Assembly.
|
17 |
| h. To enter into a Management and Concession Agreement that |
18 |
| authorizes a Concessionaire to enter into an agreement or |
19 |
| agreements with the management of state
lotteries operated |
20 |
| pursuant to the laws of other states for the purpose of
|
21 |
| creating and operating a multi-state lottery game wherein a |
22 |
| separate and
distinct prize pool would be combined to award |
23 |
| larger prizes to the public
than could be offered by the |
24 |
| several state lotteries, individually or, if the State enters |
25 |
| into a Management and Concession Agreement pursuant to which a |
26 |
| Concessionaire is authorized to manage or operate the Lottery, |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| to authorize the Concessionaire to take such action . No
tickets |
2 |
| or shares offered in connection with a multi-state lottery game
|
3 |
| shall be sold within the State of Illinois, except those |
4 |
| offered by and
through the Department or, if the State enters |
5 |
| into a Management and Concession Agreement pursuant to which a |
6 |
| Concessionaire is authorized to manage or operate the Lottery, |
7 |
| by the Concessionaire pursuant to the terms of the Management |
8 |
| and Concession Agreement and this amendatory Act of the 95th |
9 |
| General Assembly . No such agreement shall purport to pledge the |
10 |
| full
faith and credit of the State of Illinois, nor shall the |
11 |
| Department expend
State funds on a contractual basis in |
12 |
| connection with any such game unless
such expenditures are |
13 |
| expressly authorized by the General Assembly,
provided, |
14 |
| however, that in the event of error or omission by the Illinois
|
15 |
| State Lottery in the conduct of the game, as determined by the |
16 |
| multi-state
game directors , except as may be and to the extent |
17 |
| modified by the terms of a Management and Concession Agreement , |
18 |
| the Department shall be authorized to pay a prize winner or
|
19 |
| winners the lesser of a disputed prize or $1,000,000, any such |
20 |
| payment to
be made solely from funds appropriated for game |
21 |
| prize purposes. Except as may be and to the extent modified by |
22 |
| the terms of a Management and Concession Agreement, the
The
|
23 |
| Department shall be authorized to share in the ordinary |
24 |
| operating expenses
of any such multi-state lottery game, from |
25 |
| funds appropriated by the General Assembly,
and in the event |
26 |
| the multi-state game control offices are physically
located |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| within the State of Illinois, the Department is authorized to
|
2 |
| advance start-up operating costs not to exceed $150,000, |
3 |
| subject to
proportionate reimbursement of such costs by the |
4 |
| other participating state
lotteries. The Department shall be |
5 |
| authorized to share proportionately in
the costs of |
6 |
| establishing a liability reserve fund from funds appropriated
|
7 |
| by the General Assembly. The Department is authorized to |
8 |
| transfer prize
award funds attributable to Illinois sales of |
9 |
| multi-state lottery game tickets to
the multi-state control |
10 |
| office, or its designated depository, for deposit
to such game |
11 |
| pool account or accounts as may be established by the
|
12 |
| multi-state game directors, the records of which account or |
13 |
| accounts shall
be available at all times for inspection in an |
14 |
| audit by the Auditor General
of Illinois and any other auditors |
15 |
| pursuant to the laws of the State of
Illinois.
No multi-state |
16 |
| game prize awarded to a nonresident of Illinois, with
respect |
17 |
| to a ticket or share purchased in a state other than the State |
18 |
| of
Illinois, shall be deemed to be a prize awarded under this |
19 |
| Act for the
purpose of taxation under the Illinois Income Tax |
20 |
| Act.
All of the net revenues accruing from the sale of |
21 |
| multi-state lottery
tickets or shares shall be transferred into |
22 |
| the Common School Fund pursuant
to Section 7.2.
The Department |
23 |
| shall promulgate such rules as may be appropriate to
implement |
24 |
| the provisions of this Section.
|
25 |
| i. To make a continuous study and investigation of (1) the |
26 |
| operation and
the administration of similar laws which may be |
|
|
|
09500HB2055ham001 |
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|
1 |
| in effect in other states
or countries, (2) any literature on |
2 |
| the subject which from time to time
may be published or |
3 |
| available, (3) any Federal laws which may affect the
operation |
4 |
| of the
lottery, and (4) the reaction of Illinois citizens to |
5 |
| existing and potential
features of the lottery with a view to |
6 |
| recommending or effecting changes
that will tend to serve the |
7 |
| purposes of this Act.
|
8 |
| j. To report monthly to the State Treasurer and the Lottery |
9 |
| Control Board
a full and complete statement of lottery |
10 |
| revenues , prize disbursements and
other expenses for each |
11 |
| quarter
month and the amounts to be transferred to the Common
|
12 |
| School Fund pursuant to Section 7.2 or such other funds as are |
13 |
| otherwise
authorized by Section 21.2 of this Act, and to
make |
14 |
| an annual report, which shall include a full and complete |
15 |
| statement
of lottery or concession revenues , prize |
16 |
| disbursements and other expenses, to the Governor
and the |
17 |
| Board. All reports required by this subsection shall be public
|
18 |
| and copies of all
such reports shall be sent to the Speaker of |
19 |
| the House, the President of
the Senate, and the minority |
20 |
| leaders of both houses.
|
21 |
| k. In the event that the State shall enter into a |
22 |
| Management and Concession Agreement, it shall be the duty of |
23 |
| the Superintendent, together with the Board, to supervise and |
24 |
| administer the operations of the lottery in accordance with the |
25 |
| provisions of this Act, the rules and regulations of the Board |
26 |
| adopted hereunder, and the terms of the Management and |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
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|
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| Concession Agreement.
|
2 |
| (Source: P.A. 94-776, eff. 5-19-06.)
|
3 |
| (20 ILCS 1605/10) (from Ch. 120, par. 1160)
|
4 |
| Sec. 10. Licensing of agents to sell lottery tickets or |
5 |
| shares.
The Division, upon application therefor on forms |
6 |
| prescribed
by the Division, and upon a determination by the |
7 |
| Division that the
applicant meets all of the qualifications |
8 |
| specified in this Act, shall
issue a license as an agent to |
9 |
| sell lottery tickets or shares. No license
as an agent to sell |
10 |
| lottery tickets or shares shall be issued to any person
to |
11 |
| engage in business exclusively as a lottery sales agent.
|
12 |
| Before issuing such license the Superintendent shall |
13 |
| consider (a) the financial
responsibility and security of the |
14 |
| person and his business or activity, (b)
the accessibility of |
15 |
| his place of business or activity to the public, (c)
the |
16 |
| sufficiency of existing licenses to serve the public |
17 |
| convenience, (d)
the volume of expected sales, and (e) such |
18 |
| other factors as he or she may
deem appropriate.
|
19 |
| Until September 1, 1987, the provisions of Sections 2a, 4, |
20 |
| 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, |
21 |
| 10, 12 and 13.5
of the Retailers' Occupation Tax Act which are |
22 |
| not inconsistent
with this Act shall apply to the subject |
23 |
| matter of this Act to the same
extent as if such provisions |
24 |
| were included in this Act. For purposes of
this Act, references |
25 |
| in such incorporated Sections of the Retailers'
Occupation Tax |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
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|
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| Act to retailers, sellers or persons engaged in the business
of |
2 |
| selling tangible personal property mean persons engaged in |
3 |
| selling
lottery tickets or shares; references in such |
4 |
| incorporated Sections to
sales of tangible personal property |
5 |
| mean the selling of lottery tickets or
shares; and references |
6 |
| in such incorporated Sections to
certificates of registration |
7 |
| mean licenses issued under this Act. The
provisions of the |
8 |
| Retailers' Occupation Tax Act as heretofore applied to
the |
9 |
| subject matter of this Act shall not apply with respect to |
10 |
| tickets sold
by or delivered to lottery sales agents on and |
11 |
| after September 1, 1987, but
such provisions shall continue to |
12 |
| apply with respect to transactions
involving the sale and |
13 |
| delivery of tickets prior to September 1, 1987.
|
14 |
| All licenses issued by the Division under this Act shall be |
15 |
| valid
for a period not to exceed 2 years after issuance unless |
16 |
| sooner
revoked, canceled or suspended as in this Act provided. |
17 |
| No license issued
under this Act shall be transferable or |
18 |
| assignable. Such license shall be
conspicuously displayed in |
19 |
| the place of business conducted by the licensee
in Illinois |
20 |
| where lottery tickets or shares are to be sold under such |
21 |
| license.
|
22 |
| For purposes of this Section, the term "person" shall be |
23 |
| construed to
mean and include an individual, association, |
24 |
| partnership, corporation,
club, trust, estate, society, |
25 |
| company, joint stock company, receiver,
trustee, referee, any |
26 |
| other person acting in a fiduciary or representative
capacity |
|
|
|
09500HB2055ham001 |
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|
1 |
| who is appointed by a court, or any combination of individuals.
|
2 |
| "Person" includes any department, commission, agency or
|
3 |
| instrumentality of the State, including any county, city, |
4 |
| village, or
township and any agency or instrumentality thereof.
|
5 |
| If the State enters into a Management and Concession |
6 |
| Agreement pursuant to which the State authorizes a |
7 |
| Concessionaire to retain agents to distribute lottery tickets, |
8 |
| the Division shall cease issuing licenses to agents to sell |
9 |
| lottery tickets or shares during the term of the Management and |
10 |
| Concession Agreement. In retaining such agents, the |
11 |
| Concessionaire shall apply appropriate criteria in determining |
12 |
| suitability of those agents, including without limitation, |
13 |
| criteria establishing the ineligibility for a license as set |
14 |
| forth in Section 10.1 of this Act. Further, the Concessionaire |
15 |
| shall provide to the Department, not less than monthly, a list |
16 |
| of all agents the Concessionaire has engaged to distribute |
17 |
| lottery tickets or shares, which statement shall include a |
18 |
| certification that all such agents comply with the eligibility |
19 |
| standards set forth in this Act.
|
20 |
| (Source: P.A. 94-776, eff. 5-19-06.)
|
21 |
| (20 ILCS 1605/10.1) (from Ch. 120, par. 1160.1)
|
22 |
| Sec. 10.1. Persons ineligible for licenses.
The following |
23 |
| are ineligible for any license under this Act:
|
24 |
| (a) any person who has been convicted of a felony;
|
25 |
| (b) any person who is or has been a professional gambler or |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| gambling
promoter , except when the person acted in such a |
2 |
| capacity pursuant to and in compliance with all applicable law ;
|
3 |
| (c) any person who has engaged in bookmaking or other forms |
4 |
| of illegal
gambling;
|
5 |
| (d) any person who is not of good character and reputation |
6 |
| in the
community in which he resides;
|
7 |
| (e) any person who has been found guilty of any fraud or
|
8 |
| misrepresentation in any connection;
|
9 |
| (f) any firm or corporation in which a person defined in |
10 |
| (a), (b), (c),
(d) or (e) has a proprietary, equitable or |
11 |
| credit interest of 5% or more.
|
12 |
| (g) any organization in which a person defined in (a), (b), |
13 |
| (c), (d) or
(e) is an officer, director, or managing agent, |
14 |
| whether compensated or not;
|
15 |
| (h) any organization in which a person defined in (a), (b), |
16 |
| (c), (d), or
(e) is to participate in the management or sales |
17 |
| of lottery tickets or
shares.
|
18 |
| However, with respect to persons defined in (a), the |
19 |
| Department may grant
any such person a license under this Act |
20 |
| when:
|
21 |
| 1) at least 10 years have elapsed since the date when the |
22 |
| sentence for
the most recent such conviction was satisfactorily |
23 |
| completed;
|
24 |
| 2) the applicant has no history of criminal activity |
25 |
| subsequent to such conviction;
|
26 |
| 3) the applicant has complied with all conditions of |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
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|
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| probation, conditional
discharge, supervision, parole or |
2 |
| mandatory supervised release; and
|
3 |
| 4) the applicant presents at least 3 letters of |
4 |
| recommendation from responsible
citizens in his community who |
5 |
| personally can attest that the character and
attitude of the |
6 |
| applicant indicate that he is unlikely
to commit another crime.
|
7 |
| The Division may revoke, without notice or a hearing, the |
8 |
| license of
any agent who violates this Act or any rule or |
9 |
| regulation promulgated
pursuant to this Act. If the State |
10 |
| enters into a Management and Concession Agreement pursuant to |
11 |
| which the State authorizes a Concessionaire to engage any sales |
12 |
| agent, the Division shall retain the power to revoke any such |
13 |
| agency pursuant to the provisions of this Act. However, if the |
14 |
| Division does revoke a license
without notice and an |
15 |
| opportunity for a hearing, the Division shall, by
appropriate |
16 |
| notice, afford the person whose license has been revoked an
|
17 |
| opportunity for a hearing within 30 days after the revocation |
18 |
| order has
been issued. As a result of any such hearing, the |
19 |
| Division may confirm
its action in revoking the license, or it |
20 |
| may order the restoration of such
license.
|
21 |
| (Source: P.A. 94-776, eff. 5-19-06.)
|
22 |
| (20 ILCS 1605/10.1a) (from Ch. 120, par. 1160.1a)
|
23 |
| Sec. 10.1a. Failure to satisfy tax Act requirements.
In |
24 |
| addition to other grounds specified in this Act, the
Division |
25 |
| shall refuse to issue and shall suspend the license of any |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
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|
1 |
| lottery
sales agency who fails to file a return, or to pay the |
2 |
| tax, penalty or
interest shown in a filed return, or to pay any |
3 |
| final assessment of tax,
penalty or interest, as required by |
4 |
| any tax Act administered by the
Department, until such time as |
5 |
| the requirements of any
such tax Act are satisfied, unless the |
6 |
| agency is contesting, in accordance
with the procedures |
7 |
| established by the appropriate revenue Act, its
liability for |
8 |
| the tax or the amount of tax. If the State enters into a |
9 |
| Management and Concession Agreement pursuant to which the State |
10 |
| authorizes a Concessionaire to engage any sales agent, the |
11 |
| Division may direct the Concessionaire to refrain from engaging |
12 |
| or to suspend the engagement of any party acting or seeking to |
13 |
| act as a sales agent. The Division shall
affirmatively verify |
14 |
| the tax status of every sales agency before issuing or
renewing |
15 |
| a license , except that, if the State enters into a Management |
16 |
| and Concession Agreement pursuant to which the State authorizes |
17 |
| a Concessionaire to engage any sales agent, the Division shall |
18 |
| verify the tax status of each agent from the list of agents |
19 |
| provided by the Concessionaire pursuant to Section 10 of this |
20 |
| Act . For purposes of this Section, a sales agency shall not
be |
21 |
| considered delinquent in the payment of a tax if the agency (a) |
22 |
| has
entered into an agreement with the Department for the |
23 |
| payment of
all such taxes that are due and (b) is in compliance |
24 |
| with the agreement.
|
25 |
| (Source: P.A. 94-776, eff. 5-19-06.)
|
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| (20 ILCS 1605/10.2) (from Ch. 120, par. 1160.2)
|
2 |
| Sec. 10.2. Application and other fees. Each application |
3 |
| for a new lottery license must be accompanied by a one-time |
4 |
| application fee of $50; the Division, however, may waive the |
5 |
| fee for licenses of limited duration as provided by Department |
6 |
| rule. Each application for renewal of a lottery license must be |
7 |
| accompanied by a renewal fee of $25. Each lottery licensee |
8 |
| granted on-line status pursuant to the Department's rules must |
9 |
| pay a fee of $10 per week as partial reimbursement for |
10 |
| telecommunications charges incurred by the Department in |
11 |
| providing access to the lottery's on-line gaming system. The |
12 |
| Department, by rule, may increase or decrease the amount of |
13 |
| these fees. No Concessionaire that may retain sales agents for |
14 |
| the Lottery pursuant to the terms of a Management and |
15 |
| Concession Agreement may assess any fee pursuant this Section.
|
16 |
| (Source: P.A. 93-840, eff. 7-30-04; 94-776, eff. 5-19-06.)
|
17 |
| (20 ILCS 1605/10.3) (from Ch. 120, par. 1160.3)
|
18 |
| Sec. 10.3. Proceeds received by sales agent.
All proceeds |
19 |
| from the sale of lottery tickets or shares
received by a person |
20 |
| in the capacity of a sales agent shall constitute a
trust fund |
21 |
| until paid to the Department either directly, or through the
|
22 |
| Department's authorized collection representative. Proceeds |
23 |
| shall include
unsold instant tickets received by a sales agent |
24 |
| and cash proceeds of sale
of any lottery products, net of |
25 |
| allowable sales commissions and credit for
lottery prizes paid |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| to winners by sales agents. Sales proceeds and unsold
instant |
2 |
| tickets shall be delivered to the Department or its authorized
|
3 |
| collection representative upon demand. Sales agents shall be |
4 |
| personally
liable for all proceeds which shall be kept separate |
5 |
| and apart from all
other funds and assets and shall not be |
6 |
| commingled with any other funds or
assets.
In the case of a |
7 |
| sales agent who is not an individual, personal liability
shall |
8 |
| attach to the owners and officers of the sales agent. The |
9 |
| Department
shall have a right to file a lien upon all real and |
10 |
| personal property of
any person who is personally liable under |
11 |
| this Section for any unpaid
proceeds, which were to be |
12 |
| segregated as a trust fund under this Section,
at any time |
13 |
| after such payment was to have been made. Such lien shall
|
14 |
| include any interest and penalty provided for by this Act and |
15 |
| shall be
deemed equivalent to, and have the same effect as, the |
16 |
| State tax lien under
the Retailers' Occupation Tax Act.
The |
17 |
| term "person" as used in this Section, and in Section 10.4 of
|
18 |
| this Act, shall have the same meaning as provided in Section 10 |
19 |
| of this Act.
This Section, and Sections 10.4 and 10.5 of this |
20 |
| Act shall apply with
respect to all lottery tickets or shares |
21 |
| generated by computer terminal,
other electronic device, and |
22 |
| any other tickets delivered to sales agents on
and after |
23 |
| September 1, 1987. If the State enters into a Management and |
24 |
| Concession Agreement pursuant to which a Concessionaire is |
25 |
| authorized to manage or operate the Lottery and pursuant to |
26 |
| which the State shall receive any portion of Lottery revenue: |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| (i) the Concessionaire may be the Department's authorized |
2 |
| collection representative; and (ii) no such arrangement shall |
3 |
| diminish the Department's rights pursuant to this Section. For |
4 |
| purposes of this Section, "sales agent" includes any sales |
5 |
| agent engaged by a Concessionaire pursuant to the terms of a |
6 |
| Management and Concession Agreement.
|
7 |
| (Source: P.A. 86-905.)
|
8 |
| (20 ILCS 1605/10.4) (from Ch. 120, par. 1160.4)
|
9 |
| Sec. 10.4. Proceeds received by sales agent; violations.
|
10 |
| Every person who shall violate the provisions of Section
10.3, |
11 |
| or who does not segregate and keep separate and apart from all |
12 |
| other
funds and assets, all proceeds from the sale of lottery |
13 |
| tickets
received by a person in the capacity of a sales agent,
|
14 |
| shall upon conviction thereof be guilty of a Class 4 felony. |
15 |
| The
provisions of this Section shall be enforced by the |
16 |
| Illinois Department of
State Police and prosecuted by the |
17 |
| Attorney General.
|
18 |
| (Source: P.A. 85-183; 86-1475.)
|
19 |
| (20 ILCS 1605/10.5) (from Ch. 120, par. 1160.5)
|
20 |
| Sec. 10.5. Sales agent; insolvency.
Whenever any person who |
21 |
| receives proceeds from the sale of
lottery tickets in the |
22 |
| capacity of sales agent becomes insolvent, or dies
insolvent, |
23 |
| the proceeds due the Department from such person or his estate
|
24 |
| shall have preference over all debts or demands, except as |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| follows:
|
2 |
| (a) Amounts due for necessary funeral expenses;
|
3 |
| (b) Amounts due for medical care and medicine during his |
4 |
| most recent illness
preceding death;
|
5 |
| (c) Debts due to the United States;
|
6 |
| (d) Debts due to the State of Illinois and all State and
|
7 |
| local taxes; and
|
8 |
| (e) Wages for labor performed within the 6 months |
9 |
| immediately preceding the death of
such deceased person, not |
10 |
| exceeding $1,000 due to another person and provided
further |
11 |
| that such proceeds shall be nondischargeable in insolvency
|
12 |
| proceedings instituted pursuant to Chapter 7, Chapter 11, or |
13 |
| Chapter 13 of
the Federal Bankruptcy Act.
|
14 |
| (Source: P.A. 85-183.)
|
15 |
| (20 ILCS 1605/10.6) (from Ch. 120, par. 1160.6)
|
16 |
| Sec. 10.6. Odds of winning.
The Division shall make an |
17 |
| effort to more directly inform
players of the odds of winning |
18 |
| prizes. This effort shall include, at a
minimum, that the |
19 |
| Division require all ticket agents to display a placard
stating |
20 |
| the odds of winning for each game offered by that agent. In the |
21 |
| event that the State shall enter into a Management and |
22 |
| Concession Agreement, the Division shall be relieved of its |
23 |
| duties under this Section 10.6 and the Concessionaire shall be |
24 |
| obligated to comply with the requirements of this Section 10.6.
|
25 |
| (Source: P.A. 94-776, eff. 5-19-06.)
|
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| (20 ILCS 1605/10.7)
|
2 |
| Sec. 10.7. Compulsive gambling.
|
3 |
| (a) Each lottery sales agent shall post a statement |
4 |
| regarding obtaining
assistance with gambling problems and |
5 |
| including a toll-free "800" telephone
number providing crisis |
6 |
| counseling and referral services to families
experiencing |
7 |
| difficulty as a result of problem or compulsive gambling. The
|
8 |
| text of the statement shall be determined by rule by the |
9 |
| Department of
Human Services, shall be no more than
one |
10 |
| sentence in length, and shall be posted on the placard required |
11 |
| under
Section 10.6. The signs shall be provided by the |
12 |
| Department of Human
Services.
|
13 |
| (b) The Division shall print a statement regarding |
14 |
| obtaining assistance
with gambling problems, the text of which |
15 |
| shall be determined by rule by the
Department of Human |
16 |
| Services, on all
paper stock it provides to
the general public.
|
17 |
| (c) The Division shall print a statement of no more than |
18 |
| one sentence
in length regarding obtaining assistance with |
19 |
| gambling problems and including a
toll-free "800" number |
20 |
| providing crisis counseling and referral services to
families |
21 |
| experiencing difficulty as a result of problem or compulsive |
22 |
| gambling
on the back of all lottery tickets.
|
23 |
| (d) If the State enters into a Management and Concession |
24 |
| Agreement pursuant to which a Concessionaire is authorized to |
25 |
| manage or operate the Lottery, the Concessionaire shall assume |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| and discharge all duties of the Division under subsections (a), |
2 |
| (b), and (c) of this Section.
|
3 |
| (Source: P.A. 94-776, eff. 5-19-06.)
|
4 |
| (20 ILCS 1605/11) (from Ch. 120, par. 1161)
|
5 |
| Sec. 11. Officers and employees; civil or criminal |
6 |
| penalties; devolution of powers or duties.
Every officer and |
7 |
| employee shall for any offense be subject to
the same penalty |
8 |
| or penalties, civil or criminal, as are prescribed by
existing |
9 |
| law for the same offense by any officer or employee whose |
10 |
| powers
or duties devolve upon him under this Act.
|
11 |
| (Source: P.A. 78-3rd S.S.-20.)
|
12 |
| (20 ILCS 1605/12) (from Ch. 120, par. 1162)
|
13 |
| Sec. 12. Public inspection and copying of records and data; |
14 |
| exceptions.
The public inspection and copying of the records |
15 |
| and data of the
Division and the Board shall be generally |
16 |
| governed by the provisions of the
Freedom of Information Act |
17 |
| except that the following shall additionally be
exempt from |
18 |
| inspection and copying:
|
19 |
| (i) information privileged against introduction in |
20 |
| judicial proceedings;
|
21 |
| (ii) internal communications of the several agencies;
|
22 |
| (iii) information concerning secret manufacturing |
23 |
| processes or
confidential data submitted by any person |
24 |
| under this Act;
|
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| (iv) any creative proposals, scripts, storyboards or |
2 |
| other materials
prepared by or for the Division or a |
3 |
| Concessionaire under a Management and Concession |
4 |
| Agreement , prior to the placement of the materials in
the |
5 |
| media, if the prior release of the materials would |
6 |
| compromise the
effectiveness of an advertising campaign.
|
7 |
| (Source: P.A. 94-776, eff. 5-19-06.)
|
8 |
| (20 ILCS 1605/13) (from Ch. 120, par. 1163)
|
9 |
| Sec. 13. Right to prize; payment.
Except as otherwise |
10 |
| provided in Section 13.1, no prize, nor any
portion of a prize, |
11 |
| nor any right of any
person to a prize awarded shall be |
12 |
| assignable. Any prize, or portion
thereof remaining unpaid at |
13 |
| the death of a prize winner, may be paid to the
estate
of such |
14 |
| deceased prize winner, or to the trustee under a revocable |
15 |
| living
trust established by the deceased prize winner as |
16 |
| settlor, provided that a
copy of such a trust has been filed |
17 |
| with the Department along with a
notarized letter of direction |
18 |
| from the settlor and no written notice of
revocation has been |
19 |
| received by the Division prior to the settlor's
death. |
20 |
| Following such a settlor's death and prior to any payment to |
21 |
| such a
successor trustee, the Superintendent shall obtain from |
22 |
| the trustee a written agreement to indemnify and hold the |
23 |
| Department and the Division
harmless with respect to any claims |
24 |
| that may be asserted against the
Department or the Division |
25 |
| arising from payment to or through the trust. Notwithstanding
|
|
|
|
09500HB2055ham001 |
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|
1 |
| any other provision of this Section, any person pursuant to an |
2 |
| appropriate
judicial order may be paid
the prize to which a |
3 |
| winner is entitled, and all or part of any prize
otherwise |
4 |
| payable by
State warrant under this Section shall be withheld |
5 |
| upon certification to
the State Comptroller from the Illinois
|
6 |
| Department of Healthcare and Family Services
Public Aid as
|
7 |
| provided in Section 10-17.5 of The Illinois Public Aid Code. |
8 |
| The Director
and the Superintendent shall be discharged of all |
9 |
| further liability upon payment of a prize
pursuant to this |
10 |
| Section. |
11 |
| If the State enters into a Management and Concession |
12 |
| Agreement pursuant to which a payor other than the State, or a |
13 |
| department, division, agency, or other unit of the State shall |
14 |
| have the obligation to pay a prize, except as otherwise |
15 |
| provided in Section 13.1, neither a prize, nor any portion of a |
16 |
| prize, nor any right of any person to a prize awarded shall be |
17 |
| assignable. Any prize, or portion thereof remaining unpaid at |
18 |
| the death of a prize winner, may be paid to the estate of that |
19 |
| deceased prize winner, or to the trustee under a revocable |
20 |
| living trust established by the deceased prize winner as |
21 |
| settlor, provided that a copy of that trust has been delivered |
22 |
| to the third party prize payor along with a notarized letter of |
23 |
| direction from the settlor and no written notice of revocation |
24 |
| has been received by the third party prize payor prior to the |
25 |
| settlor's death. Following such a settlor's death and prior to |
26 |
| any payment to such a successor trustee, the third party prize |
|
|
|
09500HB2055ham001 |
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|
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| payor shall obtain from the trustee a written agreement to |
2 |
| indemnify and hold the third party prize payor and the State |
3 |
| harmless with respect to any claims that may be asserted |
4 |
| against such third party prize payor or the State arising from |
5 |
| the payment of the prize to or through the trust. The Director |
6 |
| and the Superintendent shall be discharged of all further |
7 |
| liability upon payment of a prize pursuant to this Section.
|
8 |
| (Source: P.A. 93-465, eff. 1-1-04; 94-776, eff. 5-19-06; |
9 |
| revised 8-21-06.)
|
10 |
| (20 ILCS 1605/14) (from Ch. 120, par. 1164)
|
11 |
| Sec. 14. Sale of ticket or share at greater than fixed |
12 |
| price; sale or resale of tickets or shares; charging a fee to |
13 |
| redeem winning ticket or share; punishment.
No person shall |
14 |
| sell a ticket or share at a price greater than that
fixed by |
15 |
| rule or regulation of the Department or the Division. No person |
16 |
| other than a
licensed lottery sales agent or distributor or a |
17 |
| sales agent engaged by a Concessionaire pursuant to the terms |
18 |
| of a Management and Concession Agreement shall sell or resell |
19 |
| lottery
tickets or shares. No person shall charge a fee to |
20 |
| redeem a winning ticket or
share.
|
21 |
| Any person convicted of violating this Section shall be |
22 |
| guilty of a
Class B misdemeanor; provided, that if any offense |
23 |
| under this Section is
a subsequent offense, the offender shall |
24 |
| be guilty of a Class 4 felony.
|
25 |
| (Source: P.A. 94-776, eff. 5-19-06.)
|
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
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|
1 |
| (20 ILCS 1605/14.2) (from Ch. 120, par. 1164.2)
|
2 |
| Sec. 14.2. Lottery ticket fraud; prima facie evidence.
Any |
3 |
| person who, with intent to defraud, shall falsely make, alter,
|
4 |
| forge, utter, pass or counterfeit a lottery ticket or share |
5 |
| issued by the
State of Illinois under this Act shall be guilty |
6 |
| of a Class 4 felony.
|
7 |
| It shall be prima facie evidence of intent to defraud for a |
8 |
| person to
possess a lottery ticket or share issued by the State |
9 |
| under this Act if he or
she knows that ticket or share was |
10 |
| falsely made, altered, forged, uttered,
passed, or |
11 |
| counterfeited.
|
12 |
| (Source: P.A. 89-466, eff. 6-13-96.)
|
13 |
| (20 ILCS 1605/14.3)
|
14 |
| Sec. 14.3. Misuse of proprietary material prohibited. |
15 |
| Except as may be
provided in Section 7.11, or by bona fide sale |
16 |
| or by prior authorization from
the Department or the Division, |
17 |
| or otherwise by law, all premiums, promotional and other
|
18 |
| proprietary material produced or acquired by the Division as |
19 |
| part of its
advertising and promotional activities shall remain |
20 |
| the property of the
Department. Nothing herein shall be |
21 |
| construed to affect the rights or
obligations of the Department |
22 |
| or any other person under federal or State
trademark or |
23 |
| copyright laws , nor shall anything herein be construed to |
24 |
| prevent the Department or Division from assigning its rights in |
|
|
|
09500HB2055ham001 |
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|
1 |
| such property to a Concessionaire pursuant to a Management and |
2 |
| Concession Agreement .
|
3 |
| (Source: P.A. 94-776, eff. 5-19-06.)
|
4 |
| (20 ILCS 1605/15) (from Ch. 120, par. 1165)
|
5 |
| Sec. 15. Prohibition against minors under 18 years of age |
6 |
| and certain other persons purchasing or being furnished lottery |
7 |
| tickets or shares.
No minor under 18 years of age shall buy a |
8 |
| lottery ticket or
share. No person shall sell, distribute |
9 |
| samples of, or furnish a lottery
ticket or share to any minor |
10 |
| under 18 years of age, buy a lottery ticket or
share for any |
11 |
| minor under 18 years of age, or aid and abet in the purchase of
|
12 |
| lottery tickets or shares by a minor under 18 years of age.
|
13 |
| No ticket or share shall be purchased by, and no prize |
14 |
| shall be paid to
any of the following persons: any member of |
15 |
| the Board or any officer or
other person employed by the Board |
16 |
| or by the Department;
any spouse, child, brother, sister or |
17 |
| parent residing as a member of the
same household in the |
18 |
| principal place of abode of any such persons; or any
minor |
19 |
| under 18 years of age.
|
20 |
| Any
violation of this Section by a person other than the |
21 |
| purchasing minor shall be
a Class B misdemeanor;
provided,
that |
22 |
| if any violation of this Section is a subsequent
violation, the
|
23 |
| offender shall be guilty of a Class 4 felony. Notwithstanding |
24 |
| any provision
to the contrary, a violation of this Section by a |
25 |
| minor under 18 years of age
shall be a petty offense.
|
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| (Source: P.A. 90-346, eff. 8-8-97.)
|
2 |
| (20 ILCS 1605/16) (from Ch. 120, par. 1166)
|
3 |
| Sec. 16. Violations of Act, rules, or regulations; |
4 |
| punishment; enforcement.
It shall be a Class B misdemeanor to |
5 |
| violate this Act or any
rule or regulation promulgated |
6 |
| thereunder, or knowingly to submit any false
information under |
7 |
| this Act or rules or regulations adopted thereunder;
except |
8 |
| that, if any person engages in such offense after one or more |
9 |
| prior
convictions under this Act, or any law of the United |
10 |
| States or of any State
relating to gambling or State operated |
11 |
| lotteries, he shall be guilty of a
Class 4 felony. It shall be |
12 |
| the duty of all State and local law enforcement
officers to |
13 |
| enforce such Act and regulations.
|
14 |
| (Source: P.A. 78-3rd S.S.-20.)
|
15 |
| (20 ILCS 1605/17) (from Ch. 120, par. 1167)
|
16 |
| Sec. 17. Other laws providing penalty or disability for |
17 |
| sale of lottery tickets or shares inapplicable.
No other law |
18 |
| providing any penalty or disability for the sale of
lottery |
19 |
| tickets or shares or any acts done in connection with the
|
20 |
| lottery established under this Act shall apply to the sale of |
21 |
| tickets or
shares performed pursuant to this Act.
|
22 |
| (Source: P.A. 81-477.)
|
23 |
| (20 ILCS 1605/19) (from Ch. 120, par. 1169)
|
|
|
|
09500HB2055ham001 |
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|
1 |
| Sec. 19. Claiming prizes.
The Division shall establish an |
2 |
| appropriate period for the
claiming of prizes for each lottery |
3 |
| game offered. Each claim period shall
be stated in game rules |
4 |
| and written play
instructions issued by the Superintendent in |
5 |
| accordance with Section 7.1 of
this Act or, if the State enters |
6 |
| into a Management and Concession Agreement pursuant to which a |
7 |
| Concessionaire shall manage or operate the Lottery, such rules |
8 |
| and written play instructions as may be issued in accordance |
9 |
| with the terms of the Management and Concession Agreement . |
10 |
| Written play instructions shall be made available to all |
11 |
| players
through sales agents licensed to sell game tickets or |
12 |
| shares.
Prizes for lottery games which involve the purchase of |
13 |
| a physical lottery
ticket may be claimed only by presentation |
14 |
| of a valid winning lottery
ticket that matches validation |
15 |
| records on file with the Lottery or, if the State enters into a |
16 |
| Management and Concession Agreement pursuant to which a |
17 |
| Concessionaire manages or operates the Lottery, the records on |
18 |
| file with that Concessionaire ; no
claim may be honored which is |
19 |
| based on the assertion that the ticket was
lost or stolen. No |
20 |
| lottery ticket which has been altered, mutilated, or
fails to |
21 |
| pass validation tests shall be deemed to be a winning ticket.
|
22 |
| If no claim
is made for the money within the established |
23 |
| claim period, then the unclaimed prize money shall be |
24 |
| transferred to the General Revenue Fund
the prize may
be |
25 |
| included in the prize pool of such special drawing or drawings |
26 |
| as the
Division may, from time to time, designate . Unclaimed
|
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
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|
1 |
| multi-state game prize money may be included in the multi-state
|
2 |
| prize
pool for such special drawing or drawings as the |
3 |
| multi-state game directors
may, from time to time, designate. |
4 |
| Any bonuses offered by the Department
to sales agents who sell |
5 |
| winning tickets or shares shall be
payable to such agents |
6 |
| regardless of whether or not the prize money on the
ticket or |
7 |
| share is claimed, provided that the agent can be identified as
|
8 |
| the vendor of the winning ticket or share, and
that the winning |
9 |
| ticket or share was sold on or after January 1, 1984.
All |
10 |
| unclaimed prize money not included in the prize pool of a |
11 |
| special
drawing shall be transferred to the Common School Fund.
|
12 |
| (Source: P.A. 94-776, eff. 5-19-06.)
|
13 |
| (20 ILCS 1605/20) (from Ch. 120, par. 1170)
|
14 |
| Sec. 20. State Lottery Fund.
|
15 |
| (a) There is created in the State Treasury a special fund |
16 |
| to be
known as the "State Lottery Fund". Such fund shall |
17 |
| consist of all revenues
received from (1) the sale of lottery |
18 |
| tickets or shares, (net of
commissions, fees
representing those |
19 |
| expenses that are directly proportionate to the
sale of tickets |
20 |
| or shares at the agent location, and prizes of less
than
$600 |
21 |
| which
have been validly paid at the agent
level), (2) |
22 |
| application fees,
and (3) all other sources including moneys |
23 |
| credited or transferred thereto
from
any other fund
or source |
24 |
| pursuant to law and, if the State enters into a Management and |
25 |
| Concession Agreement, any moneys accruing to the State pursuant |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
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|
1 |
| to the terms of that Agreement . Interest earnings of the State |
2 |
| Lottery Fund
shall be credited to the Common School Fund.
|
3 |
| (b) The receipt and distribution of moneys under Section |
4 |
| 21.5 of this Act shall be in accordance with Section 21.5.
|
5 |
| (c)
(b) The receipt and distribution of moneys under |
6 |
| Section 21.6 of this Act shall be in accordance with Section |
7 |
| 21.6. |
8 |
| (Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05; |
9 |
| revised 8-19-05.)
|
10 |
| (20 ILCS 1605/21) (from Ch. 120, par. 1171)
|
11 |
| Sec. 21. Payments or deposits of moneys and income.
All |
12 |
| lottery sales agents or distributors shall be liable to the
|
13 |
| Lottery for any and all tickets accepted or generated by any |
14 |
| employee or
representative of that agent or distributor, and |
15 |
| such tickets shall be deemed
to have been purchased by the |
16 |
| agent or distributor unless returned to the
Lottery or if the |
17 |
| State enters into a Management and Concession Agreement |
18 |
| pursuant to which a Concessionaire engages sales agents or |
19 |
| distributors, to such Concessionaire as may be allowed |
20 |
| according to the terms of the Management and Concession |
21 |
| Agreement within the time and in the manner prescribed by the |
22 |
| Superintendent. All
moneys received by such agents or |
23 |
| distributors from the sale of lottery tickets
or shares, less |
24 |
| the amount retained as compensation for the sale of the tickets
|
25 |
| or shares and the amount paid out as prizes, shall be paid over |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
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|
1 |
| to a lottery
representative or deposited in a bank or savings |
2 |
| and loan association approved
by the State Treasurer, as |
3 |
| prescribed by the Superintendent or, if the State enters into a |
4 |
| Management and Concession Agreement pursuant to which those |
5 |
| moneys are to be held by a trustee, to that trustee and in |
6 |
| accordance with such terms as may be set forth in the |
7 |
| Management and Concession Agreement .
|
8 |
| No bank or savings and loan association shall receive any
|
9 |
| public funds as
permitted by this Section, unless it has |
10 |
| complied with the requirements
established pursuant to Section |
11 |
| 6 of the Public Funds Investment Act.
|
12 |
| Each payment or deposit shall be accompanied by a report of |
13 |
| the agent's
receipts and transactions in the sale of lottery |
14 |
| tickets in such form and
containing such information as the |
15 |
| Superintendent , or if the State enters into a Management and |
16 |
| Concession Agreement, as the Concessionaire may require. Any
|
17 |
| discrepancies in such receipts and transactions may be resolved |
18 |
| as
provided by the rules and regulations of the Department.
|
19 |
| If any money due the Lottery by a sales agent or |
20 |
| distributor is not paid
when due or demanded, it shall |
21 |
| immediately become delinquent and be billed
on a subsequent |
22 |
| monthly statement. If on the closing date for any monthly
|
23 |
| statement a delinquent amount previously billed of more than |
24 |
| $50 remains
unpaid, interest in such amount shall be accrued at |
25 |
| the rate of 2% per month
or fraction thereof from the date when |
26 |
| such delinquent amount becomes past
due until such delinquent |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
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|
1 |
| amount, including interest, penalty and other
costs and charges |
2 |
| that the Department may incur in collecting such amounts, is
|
3 |
| paid. In case any agent or distributor fails to pay any moneys |
4 |
| due the Lottery
within 30 days after a second bill or statement |
5 |
| is rendered to the agent or
distributor, such amount shall be |
6 |
| deemed seriously delinquent and may be
referred by the |
7 |
| Department to a collection agency or credit bureau for
|
8 |
| collection. Any contract entered into by the Department for the |
9 |
| collection of
seriously delinquent accounts with a collection |
10 |
| agency or credit bureau may be
satisfied by a commercially |
11 |
| reasonable percentage of the delinquent account
recouped, |
12 |
| which shall be negotiated by the Department in accordance with
|
13 |
| commercially accepted standards. Any costs incurred by the |
14 |
| Department or
others authorized to act in its behalf in |
15 |
| collecting such delinquencies may be
assessed against the agent |
16 |
| or distributor and included as a part of the
delinquent |
17 |
| account.
|
18 |
| In case of failure of an agent or distributor to pay a |
19 |
| seriously delinquent
amount, or any portion thereof, including |
20 |
| interest, penalty and costs,
the Division may issue a Notice of |
21 |
| Assessment. In determining amounts
shown on the Notice of |
22 |
| Assessment, the Division shall utilize the
financial |
23 |
| information available from its records. Such Notice of
|
24 |
| Assessment shall be prima facie correct and shall be prima |
25 |
| facie evidence
of delinquent sums due under this Section at any |
26 |
| hearing before the Board,
or its Hearing Officers, or at any |
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| other legal proceeding. Reproduced
copies of the Division's |
2 |
| records relating to a delinquent account or a
Notice of |
3 |
| Assessment offered in the name of the Department, under the
|
4 |
| Certificate of the Director or any officer or employee of the |
5 |
| Department
designated in writing by the Director shall, without |
6 |
| further proof, be
admitted into evidence in any such hearing or |
7 |
| any legal proceeding and shall be
prima facie proof of the |
8 |
| delinquency, including principal and any interest,
penalties |
9 |
| and costs, as shown thereon. The Attorney General may bring |
10 |
| suit on
behalf of the Department to collect all such delinquent |
11 |
| amounts, or any portion
thereof, including interest, penalty |
12 |
| and costs, due the Lottery.
|
13 |
| Any person who accepts money that is due to the Department |
14 |
| from the
sale of lottery tickets or shares under this Act, but |
15 |
| who wilfully fails to remit
such payment to the Department when |
16 |
| due or who purports to make such payment
but wilfully fails to |
17 |
| do so because such
his check or other remittance fails to
clear |
18 |
| the financial institution
bank or savings and loan association
|
19 |
| against
which it is drawn, in
addition to the amount due and in |
20 |
| addition to any other penalty provided by
law, shall be |
21 |
| assessed, and shall pay, a penalty equal to 5% of the |
22 |
| deficiency
plus any costs or charges incurred by the Department |
23 |
| in collecting such amount.
|
24 |
| The Director may make such arrangements for any person(s), |
25 |
| financial institution,
banks, savings and
loan associations or |
26 |
| distributors, to perform such functions, activities or
|
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| services in connection with the operation of the lottery as he |
2 |
| deems advisable
pursuant to this Act, the State Comptroller |
3 |
| Act, or the rules and regulations of the Department,
and such |
4 |
| functions, activities or services shall constitute lawful |
5 |
| functions,
activities and services of such person(s), banks, |
6 |
| savings and loan associations
or distributors.
|
7 |
| All income arising out of any activity or purpose of the |
8 |
| Division
shall,
pursuant to the State Finance Act, be paid into |
9 |
| the State Treasury except as otherwise provided by the
rules |
10 |
| and regulations of the Department and shall be covered into a |
11 |
| special
fund to be known as the State Lottery Fund. Banks and |
12 |
| savings and loan
associations may be compensated for services |
13 |
| rendered based upon the activity
and amount of funds on |
14 |
| deposit.
|
15 |
| (Source: P.A. 94-776, eff. 5-19-06.)
|
16 |
| (20 ILCS 1605/21.2) (from Ch. 120, par. 1171.2)
|
17 |
| Sec. 21.2. (Repealed.)
There is created a special fund in |
18 |
| the State Treasury known
as the Illinois Land Grant Collegiate |
19 |
| Athletics Fund. The Department
shall designate
a special |
20 |
| lottery game of its choosing which it shall prepare
and offer |
21 |
| for sale to the public, the net proceeds from which shall be |
22 |
| transferred
to such
fund for distribution to the University of |
23 |
| Illinois Athletic Association
as otherwise authorized by law.
|
24 |
| (Source: P.A. 84-1128.)
|
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
1 |
| (20 ILCS 1605/21.3) (from Ch. 120, par. 1171.3)
|
2 |
| Sec. 21.3. Officer of corporation; personal liability.
Any |
3 |
| officer of any corporation licensed as an agent for the
sale of |
4 |
| Lottery tickets and products shall be personally liable for the |
5 |
| total
amount of Lottery receipts due the Department which are |
6 |
| unpaid by the
corporation, together with any interest and |
7 |
| penalties thereon assessed in
accordance with the provision of |
8 |
| Section 21 of the Act.
|
9 |
| The personal liability of a corporate officer as provided |
10 |
| herein shall
survive the dissolution of the corporation. No |
11 |
| action to enforce such
personal liability shall be commenced |
12 |
| unless a notice of the delinquent
account has been sent to such |
13 |
| corporate officer at the address shown on the
Lottery records |
14 |
| or otherwise known to Department officials, and no such
action |
15 |
| shall be commenced after the expiration of 3 years from the |
16 |
| date of
the Department's notice of delinquent account or the |
17 |
| termination of any
court proceedings with respect to the issue |
18 |
| of the delinquency of a
corporation.
|
19 |
| Procedures for protest and review of a notice of the |
20 |
| Department's
intention to enforce personal liability against a |
21 |
| corporate officer shall
be the same as those prescribed for |
22 |
| protest and review of the Notice of
Assessment as set forth in |
23 |
| Section 7.3 of this Act.
|
24 |
| (Source: P.A. 88-522.)
|
25 |
| (20 ILCS 1605/21.5)
|
|
|
|
09500HB2055ham001 |
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LRB095 01509 HLH 37923 a |
|
|
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| Sec. 21.5. Superintendent Carolyn Adams Ticket For The |
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| Cure. |
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| (a) The Department shall offer a special instant |
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| scratch-off game with the title of " Carolyn Adams Ticket For |
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| The Cure". The game shall commence on January 1, 2006 or as |
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| soon thereafter, in the discretion of the Director, as is |
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| reasonably practical, and shall be discontinued on December 31, |
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| 2011. The operation of the game shall be governed by this Act |
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| and any rules adopted by the Department. The Department must |
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| consult with the Ticket For The Cure Board, which is |
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| established under Section 2310-347 of the Department of Public |
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| Health Powers and Duties Law of the
Civil Administrative Code |
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| of Illinois, regarding the design and promotion of the game. If |
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| any provision of this Section is inconsistent with any other |
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| provision of this Act, then this Section governs. |
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| (b) The Ticket For The Cure Fund is created as a special |
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| fund in the State treasury. The net revenue from the Carolyn |
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| Adams Ticket For The Cure special instant scratch-off game |
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| shall be deposited into the Fund for appropriation by the |
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| General Assembly solely to the Department of Public Health for |
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| the purpose of making grants to public or private entities in |
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| Illinois for the purpose of funding research concerning breast |
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| cancer and for funding services for breast cancer victims. The |
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| Department must, before grants are awarded, provide copies of |
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| all grant applications to the Ticket For The Cure Board, |
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| receive and review the Board's recommendations and comments, |
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| and consult with the Board regarding the grants. For purposes |
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| of this Section, the term "research" includes, without |
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| limitation, expenditures to develop and advance the |
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| understanding, techniques, and modalities effective in the |
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| detection, prevention, screening, and treatment of breast |
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| cancer and may include clinical trials. The grant funds may not |
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| be used for institutional, organizational, or community-based |
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| overhead costs, indirect costs, or levies. |
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| Moneys received for the purposes of this Section, |
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| including, without limitation, net revenue from the special |
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| instant scratch-off game and gifts, grants, and awards from any |
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| public or private entity, must be deposited into the Fund. Any |
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| interest earned on moneys in the Fund must be deposited into |
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| the Fund. |
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| For purposes of this subsection, "net revenue" means the |
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| total amount for which tickets have been sold less the sum of |
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| the amount paid out in prizes and the actual administrative |
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| expenses of the Department solely related to the Carolyn Adams
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| Ticket For The Cure game. |
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| (c) During the time that tickets are sold for the Carolyn |
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| Adams Ticket For The Cure game, the Department shall not |
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| unreasonably diminish the efforts devoted to marketing any |
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| other instant scratch-off lottery game. |
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| (d) The Department may adopt any rules necessary to |
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| implement and administer the provisions of this Section.
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| (Source: P.A. 94-120, eff. 7-6-05.) |
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| (20 ILCS 1605/21.7 new) |
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| Sec. 21.7. Right to direct offer of new games. If the State |
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| enters into a Management and Concession Agreement, the State |
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| shall retain the right to direct the Concessionaire to offer |
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| games as the General Assembly may determine appropriate from |
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| time to time. The General Assembly may in its discretion direct |
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| the deposit and use of net revenues from any such new games. |
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| The operation of any such new games shall be governed by this |
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| Act and any rules necessary to implement and administer the |
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| provisions of this Section as adopted by the Department. |
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| For purposes of this Section, "net revenue" means the total |
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| amount for which tickets have been sold less the sum of the |
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| amount paid out in the prizes and the costs and expenses of the |
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| Department related to the game.
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| (20 ILCS 1605/24) (from Ch. 120, par. 1174)
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| Sec. 24. Preaudit of accounts and transactions by State |
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| Comptroller; post-audits by Auditor General.
The State |
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| Comptroller shall conduct a preaudit of all accounts and
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| transactions of the Department in connection with the operation |
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| of the State Lottery under the State Comptroller Act, excluding
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| payments issued by the Department for prizes of $25,000 or |
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| less.
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| The Auditor General or a certified public accountant
firm |
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| appointed by
him shall conduct an annual post-audit of all |
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| accounts and transactions of
the Department in connection with |
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| the operation of the State Lottery and other special post |
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| audits as the Auditor General, the
Legislative Audit |
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| Commission, or the General Assembly deems
necessary. The
annual |
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| post-audits shall include payments made by lottery sales agents |
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| of
prizes of less than $600 authorized under Section 20, and |
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| payments made by
the Department of prizes up to $25,000 |
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| authorized under
Section 20.1. The Auditor General or his agent
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| conducting an audit under this
Act shall have access and |
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| authority to examine any and all records of the
Department or |
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| the Board, its distributing agents and its licensees.
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| (Source: P.A. 94-776, eff. 5-19-06.)
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| (20 ILCS 1605/25) (from Ch. 120, par. 1175)
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| Sec. 25. Review under Administrative Review Law.
Any party |
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| adversely affected by a final
order or determination of the
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| Board or the Department may obtain judicial review, by filing a
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| petition
for review within 35 days after the entry of the order |
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| or other final
action complained of, pursuant to the provisions |
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| of the Administrative Review
Law, as amended and the rules |
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| adopted
pursuant thereto.
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| (Source: P.A. 82-783.)
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| (20 ILCS 1605/26) (from Ch. 120, par. 1176)
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| Sec. 26. Severability of invalid provisions or |
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| applications.
If any clause, sentence, paragraph, subdivision, |
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| Section,
provision or other portion of this Act or the |
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| application thereof to any
person or circumstances is held to |
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| be invalid, such holding shall not
affect, impair or invalidate |
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| the remainder of this Act or the application
of such portion |
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| held invalid to any other person or circumstances, but
shall be |
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| confined in its operation to the clause, sentence, paragraph,
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| subdivision, provision or other portion thereof directly |
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| involved in such
holding or to the person and circumstances |
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| therein involved.
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| (Source: P.A. 78-3rd S.S.-20.)
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| (20 ILCS 1605/27) (from Ch. 120, par. 1177)
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| Sec. 27. Contracts; investments; proceeds; Deferred |
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| Lottery Prize Winners Trust Fund; disbursements; State Lottery |
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| Fund; Lottery Concession Fund.
(a) The State Treasurer may, |
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| with the consent of the Director,
contract with any person or |
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| corporation, including, without limitation,
a bank, banking |
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| house, trust company or investment banking firm, to perform
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| such financial functions, activities or services in connection |
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| with operation
of the lottery as the State Treasurer and the |
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| Director may prescribe.
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| (b) All proceeds from investments made pursuant to |
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| contracts executed by
the State Treasurer, with the consent of |
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| the Director,
to perform financial functions, activities or |
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| services in connection with
operation of the lottery, shall be |
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| deposited and held by the State Treasurer
as ex-officio |
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| custodian thereof, separate and apart from all
public money or |
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| funds of this State in a special trust fund outside the
State |
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| treasury. Such trust fund shall be known as the "Deferred |
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| Lottery
Prize Winners Trust Fund", and shall be administered by |
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| the Director.
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| The Director shall, at such times and in such amounts as |
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| shall be
necessary, prepare and send to the State Comptroller |
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| vouchers requesting
payment from the Deferred Lottery Prize |
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| Winners Trust Fund to deferred
prize winners, in a manner that |
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| will insure the timely
payment of such amounts owed.
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| This Act shall constitute an irrevocable appropriation of |
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| all amounts
necessary for that purpose, and the irrevocable and |
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| continuing authority
for and direction to the Director and the |
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| State Treasurer to
make the necessary payments out of such |
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| trust fund for that purpose. In the event that the State shall |
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| enter into a Management and Concession Agreement, this Section |
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| 27(b) shall not apply to any prizes awarded after the closing |
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| date of the Management and Concession Agreement.
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| (c) Moneys invested pursuant to subsection (a) of this |
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| Section may be
invested only in bonds, notes, certificates of |
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| indebtedness, treasury
bills, or other securities constituting |
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| direct obligations of the United
States of America and all |
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| securities or obligations the prompt payment of
principal and |
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| interest of which is guaranteed by a pledge of the full faith
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| and credit of the United States of America. Interest earnings |
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| on moneys in
the Deferred Lottery Prize Winners Trust Fund |
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| shall remain in such fund
and be used to pay the winners of |
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| lottery prizes deferred as to payment
until such obligations |
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| are discharged.
Proceeds from bonds purchased and interest |
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| accumulated as a result of a grand
prize multi-state game |
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| ticket that goes unclaimed will be transferred after the
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| termination of the relevant claim period directly from the |
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| lottery's Deferred
Lottery Prize Winners Trust Fund to each |
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| respective multi-state partner state
according to its |
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| contribution ratio. All moneys invested pursuant to the terms |
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| of any Management and Concession Agreement into which the State |
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| may enter, shall be subject to the provisions of this |
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| subsection.
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| (c-5) If a deferred lottery prize is not claimed within the |
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| claim
period established by game rule, then the securities or |
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| other instruments
purchased to fund the prize shall be |
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| liquidated and the liquidated amount
shall be transferred to |
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| the State Lottery Fund for disposition pursuant to
Section 19 |
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| of
this Act. In the event that the State shall enter into a |
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| Management and Concession Agreement, this Section 27(c-5) |
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| shall not apply to any prizes awarded after the closing date of |
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| the Management and Concession Agreement.
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| (c-10) The Director may use a portion of the moneys in the
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| Deferred
Lottery Prize Winners Trust Fund to purchase bonds
to |
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| pay a lifetime prize if the prize duration exceeds the length |
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| of available
securities. If the winner of a lifetime prize |
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| exceeds his or her life
expectancy as determined using |
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| actuarial assumptions and the securities or
moneys set aside to |
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| pay the prize have been exhausted, moneys in the State
Lottery |
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| Fund shall be used to make payments to the winner
for the |
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| duration of the winner's life. In the event that the State |
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| shall enter into a Management and Concession Agreement, this |
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| Section 27(c-10) shall not apply to any prizes awarded after |
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| the closing date of the Management and Concession Agreement.
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| (c-15) From time to time, the Director may
request that the |
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| State Comptroller transfer any excess moneys in the Deferred
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| Lottery Prize Winners Trust Fund to the Lottery Fund. In the |
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| event that the State shall enter into a Management and |
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| Concession Agreement, this Section 27(c-15) shall not apply to |
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| any prizes awarded after the closing date of the Management and |
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| Concession Agreement.
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| (c-20) In the event that the State shall enter into a |
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| Management and Concession Agreement pursuant to which a |
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| Concessionaire is authorized to manage or operate the Lottery, |
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| there shall be created a fund to be known as the Lottery |
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| Concession Trust Fund, which shall be a special, |
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| non-appropriated trust fund held outside the State treasury and |
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| separate and apart from all public money and funds of this |
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| State. All proceeds from the sale of lottery tickets or shares |
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| and all other revenue from the State's conduct of the Lottery |
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| as authorized under this amendatory Act of the 95th General |
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| Assembly, including lottery revenues a Concessionaire may be |
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| eligible to receive under a Management and Concession |
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| Agreement, shall be paid into the Fund. |
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| The Fund shall begin to receive lottery proceeds and |
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| revenues on the date that a Management and Concession Agreement |
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| first becomes effective, and moneys in the Fund shall not at |
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| any time during the term of such an agreement be appropriated |
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| or diverted to any other use or purpose. The Fund shall be held |
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| by an Illinois trustee designated pursuant to the Concession |
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| and Management Agreement. All interest or other earnings |
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| accruing or received on amounts in the Fund shall be credited |
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| to and retained by the Fund. The Fund shall be held, |
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| administered, invested and disbursed in accordance with the |
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| trust agreement and the Management and Concession Agreement.
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| (d) This amendatory Act of 1985 shall be construed |
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| liberally to effect
the purposes of the Illinois Lottery Law.
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| (Source: P.A. 89-466, eff. 6-13-96; 90-346, eff. 8-8-97.)
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| Section 10. The Illinois Procurement Code is amended by |
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| changing Section 50-70 as follows:
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| (30 ILCS 500/50-70)
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| Sec. 50-70. Additional provisions. This Code is subject
to |
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| applicable provisions of
the following Acts:
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| (1) Article 33E of the Criminal Code of 1961;
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| (2) the Illinois Human Rights Act;
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| (3) the Discriminatory Club Act;
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| (4) the Illinois Governmental Ethics Act;
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