HB2055 Engrossed LRB095 01509 AMC 21511 b

1     AN ACT concerning public employee benefits.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Lottery Law is amended by changing
5 Sections 2, 3, 4, 5, 6, 7.1, 7.2, 7.3, 7.4, 7.5, 7.6, 7.8,
6 7.8a, 7.11, 8, 8.1, 9, 10, 10.1, 10.1a, 10.2, 10.3, 10.4, 10.5,
7 10.6, 10.7, 11, 12, 13, 14, 14.2, 14.3, 15, 16, 17, 19, 20, 21,
8 21.2, 21.3, 21.5, 24, 25, 26, and 27 and by adding Sections
9 2.1, 6.1, and 21.7 as follows:
 
10     (20 ILCS 1605/2)  (from Ch. 120, par. 1152)
11     Sec. 2. This Act is enacted to implement and establish
12 within the State a lottery to be conducted operated by the
13 State, whether that lottery is operated and managed by the
14 State or by a third party pursuant to a Management and
15 Concession Agreement. The operations of a lottery are unique
16 activities for State government, and private management will
17 best enable the lottery to be operated in an entrepreneurial
18 and business-like manner, thereby maximizing value for and
19 benefit to the citizens of the State. Any such private manager
20 shall be accountable to the State through a comprehensive
21 system of State regulation and enduring operational oversight.
22 The State's ongoing conduct of the Lottery throughout the term
23 of a Concession shall act to promote and ensure the integrity,

 

 

HB2055 Engrossed - 2 - LRB095 01509 AMC 21511 b

1 security, honesty, and fairness of the Lottery's operation and
2 administration. the entire net proceeds of which are to be used
3 for the support of the State's Common School Fund, except as
4 provided in Sections 21.2 and 21.5 and 21.6.
5 (Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05;
6 revised 8-23-05.)
 
7     (20 ILCS 1605/2.1 new)
8     Sec. 2.1. Third-party management authorized.
9 Notwithstanding any provision of this Act or other applicable
10 law to the contrary, the State may, pursuant to a competitive
11 bidding process, enter into a Management and Concession
12 Agreement with a third party pursuant to which that party may
13 be authorized to manage or operate the Lottery, and further
14 pursuant to which that party may retain certain Lottery
15 revenues in consideration of the payment of a fee or fees to
16 the State for that right, provided that the Concession is
17 managed and operated in accordance with the provisions of this
18 Act and that the State at all times retains control of the
19 Lottery and exercises supervisory authority over the
20 Concession sufficient to implement the terms of the Management
21 and Concession Agreement and to effect the purposes of this
22 Act. The Lottery shall remain, for so long as a Concessionaire
23 manages and operates the Concession in accordance with
24 provisions of this Act, a Lottery conducted by the State.
25     The terms of a Management and Concession Agreement shall

 

 

HB2055 Engrossed - 3 - LRB095 01509 AMC 21511 b

1 include, without limitation, all of the following:
2         (a) The length of term of the Concession shall not
3     exceed 75 years.
4         (b) The consideration paid to the State for a
5     Concessionaire's right to manage and operate the
6     Concession shall be not less than $10,000,000,000.
7         (b-5) A portion of the consideration paid to the State
8     shall be used, in combination with other revenue sources,
9     to replace funds that would have been transferred to the
10     Common School Fund pursuant to this Act prior to the
11     enactment of this amendatory Act of the 95th General
12     Assembly.
13         (c) At least 19% of the value of all contracts and
14     agreements entered into by the Concessionaire for goods and
15     services in connection with its management and operation of
16     the Lottery, other than contracts or agreements with sales
17     agents or technical operators, must be awarded to
18     businesses that are a "minority owned business" or a
19     "female owned business" as those terms are defined in the
20     Business Enterprise for Minorities, Females, and Persons
21     with Disabilities Act. For purposes of this item (c), all
22     contracts entered into by a technical operator shall be
23     deemed to be contracts entered by the Concessionaire. A
24     contract by which the Concessionaire retains a technical
25     operator shall be exempt from the requirements of this item
26     (c). For purposes of this item (c), a technical operator

 

 

HB2055 Engrossed - 4 - LRB095 01509 AMC 21511 b

1     means an entity that, pursuant to the terms of this
2     amendatory Act of the 95th General Assembly and the
3     Concession Agreement, is substantially involved in the
4     day-to-day operations of the Lottery in a manner that
5     includes (i) the design and production of lottery games or
6     lottery game equipment, (ii) the provision and maintenance
7     of lottery equipment, (iii) the operation and monitoring of
8     lottery games or other regulated gaming activities, (iv)
9     the development and maintenance of a distribution network,
10     or (v) the verification of game outcomes, or an entity
11     responsible for other significant regulated gaming
12     activities.
13     All of the acts of officials authorized by the State that
14 are in conformity with the intent and purposes of this
15 amendatory Act of the 95th General Assembly, whether heretofore
16 or hereafter taken or done, shall be and are ratified,
17 confirmed, authorized, and approved hereby in all respects. To
18 the extent any provision of the Illinois Procurement Code (30
19 ILCS 500/) is in conflict with this amendatory Act of the 95th
20 General Assembly insofar as it relates to any Transaction
21 Documents, the provisions of this amendatory Act shall be
22 controlling.
23     This amendatory Act of the 95th General Assembly shall be
24 construed liberally to effect the purposes of the Illinois
25 Lottery Law as amended by this amendatory Act and to provide
26 for the implementation and oversight of any Management and

 

 

HB2055 Engrossed - 5 - LRB095 01509 AMC 21511 b

1 Concession Agreement that the State may enter into pursuant to
2 the terms of this amendatory Act.
3     If the State enters into a Management and Concession
4 Agreement pursuant to the terms of this Section, the State
5 shall retain as employees of the State any employees of the
6 Lottery who are employed by the Lottery as of the signing of
7 the Management and Concession Agreement.
 
8     (20 ILCS 1605/3)  (from Ch. 120, par. 1153)
9     Sec. 3. Definitions. For the purposes of this Act:
10     a. "Lottery" or "State Lottery" means the lottery or
11 lotteries established and operated pursuant to this Act.
12     b. "Board" means the Lottery Control Board created by this
13 Act.
14     c. "Department" means the Department of Revenue.
15     d. "Director" means the Director of Revenue.
16     e. "Chairman" means the Chairman of the Lottery Control
17 Board.
18     f. "Multi-state game directors" means such persons,
19 including the Superintendent, as may be designated by an
20 agreement between the Division and one or more additional
21 lotteries operated under the laws of another state or states.
22     g. "Division" means the Division of the State Lottery of
23 the Department of Revenue.
24     h. "Superintendent" means the Superintendent of the
25 Division of the State Lottery of the Department of Revenue.

 

 

HB2055 Engrossed - 6 - LRB095 01509 AMC 21511 b

1     i. "Concession" means the right of a Concessionaire to
2 manage or operate the Lottery pursuant to the terms of a
3 Management and Concession Agreement and this Act.
4     j. "Management and Concession Agreement" means that
5 agreement and all schedules, exhibits, and attachments
6 thereto, entered into pursuant to a competitive bidding process
7 and pursuant to which the State may grant a license or other
8 contractual right to manage or operate the Lottery to a
9 Concessionaire, and further pursuant to which a Concessionaire
10 may receive certain Lottery ticket or share sales and related
11 proceeds in consideration of the payment of a fee or fees to
12 the State.
13     k. "Concessionaire" means a third party that manages or
14 operates the Lottery pursuant to a Management and Concession
15 Agreement then in effect.
16     l. "Conducted by the State" means the management and
17 operation of the Lottery pursuant to the terms of this Act,
18 whether directly by the State or by a Concessionaire pursuant
19 to the terms of a Management and Concession Agreement as
20 provided for in this amendatory Act of the 95th General
21 Assembly. The Concessionaire shall at all times remain
22 accountable to the State and the people of the State through a
23 comprehensive system of State regulation and enduring
24 operational oversight, which shall include, without
25 limitation, the Concessionaire's regular provision and the
26 State's ongoing review and analysis of audits, reports, and

 

 

HB2055 Engrossed - 7 - LRB095 01509 AMC 21511 b

1 financial disclosures as required by this amendatory Act of the
2 95th General Assembly.
3 (Source: P.A. 94-776, eff. 5-19-06.)
 
4     (20 ILCS 1605/4)  (from Ch. 120, par. 1154)
5     Sec. 4. Department established. The Department of the
6 Lottery is established to implement and regulate the State
7 Lottery in the manner provided in this Act.
8     In accordance with Executive Order No. 9 (2003), the
9 Division of the State Lottery is established within the
10 Department of Revenue. Unless otherwise provided by law, the
11 Division of the State Lottery shall be subject to and governed
12 by all of the laws and rules applicable to the Department.
13 (Source: P.A. 94-776, eff. 5-19-06.)
 
14     (20 ILCS 1605/5)  (from Ch. 120, par. 1155)
15     Sec. 5. Superintendent. The Division shall be under the
16 supervision and direction of a Superintendent, who shall be a
17 person qualified by training and experience to perform the
18 duties required by this Act. The Superintendent shall be
19 appointed by the Governor, by and with the advice and consent
20 of the Senate. The term of office of the Superintendent shall
21 expire on the third Monday of January in odd numbered years
22 provided that he or she shall hold office until a successor is
23 appointed and qualified.
24     Any vacancy occurring in the office of the Superintendent

 

 

HB2055 Engrossed - 8 - LRB095 01509 AMC 21511 b

1 shall be filled in the same manner as the original appointment.
2     The Superintendent shall devote his or her entire time and
3 attention to the duties of the office and shall not be engaged
4 in any other profession or occupation. The Superintendent shall
5 receive such salary as shall be provided by law.
6 (Source: P.A. 94-776, eff. 5-19-06.)
 
7     (20 ILCS 1605/6)  (from Ch. 120, par. 1156)
8     Sec. 6. Lottery Control Board; creation; appointment;
9 chairman; terms; vacancies; removal; compensation; meetings;
10 quorum. There is hereby created an independent board to be
11 known as the Lottery Control Board, consisting of 5 members,
12 all of whom shall be citizens of the United States and
13 residents of this State and shall be appointed by the Governor
14 with the advice and consent of the Senate. No more than 3 of
15 the 5 members shall be members of the same political party. A
16 chairman of the Board shall be chosen annually from the
17 membership of the Board by a majority of the members of the
18 Board at the first meeting of the Board each fiscal year.
19     Initial members shall be appointed to the Board by the
20 Governor as follows: one member to serve until July 1, 1974,
21 and until his successor is appointed and qualified; 2 members
22 to serve until July 1, 1975, and until their successors are
23 appointed and qualified; 2 members to serve until July 1, 1976,
24 and until their successors are appointed and qualified. As
25 terms of members so appointed expire, their successors shall be

 

 

HB2055 Engrossed - 9 - LRB095 01509 AMC 21511 b

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

 

 

HB2055 Engrossed - 10 - LRB095 01509 AMC 21511 b

1 all its meetings.
2 (Source: P.A. 84-1128.)
 
3     (20 ILCS 1605/6.1 new)
4     Sec. 6.1. Lottery Control Board's Authorization to
5 Implement the Act and Oversee Concession. The term of each
6 appointed member of the Board who is in office on May 31, 2007
7 shall terminate at the close of business on that date or when
8 all of the new members to be initially appointed under this
9 amendatory Act of the 95th General Assembly have been appointed
10 by the Governor, whichever occurs later.
11     Beginning on June 1, 2007 or when all of the new members of
12 the Board to be initially appointed under this amendatory Act
13 of the 95th General Assembly have been appointed by the
14 Governor, whichever occurs later, the Board shall consist of 7
15 members, all of whom shall be citizens of the United States and
16 residents of this State and shall be appointed by the Governor
17 with the advice and consent of the Senate. No more than 4 of
18 the 7 members shall be members of the same political party. A
19 chairman of the Board shall be chosen annually from the
20 membership of the Board by a majority of the members of the
21 Board at the first meeting of the Board each fiscal year.
22     Members shall be appointed to the Board by the Governor as
23 follows: 2 members to serve until July 1, 2009, and until their
24 successors are appointed and qualified; 2 members to serve
25 until July 1, 2010, and until their successors are appointed

 

 

HB2055 Engrossed - 11 - LRB095 01509 AMC 21511 b

1 and qualified; 3 members to serve until July 1, 2011, and until
2 their successors are appointed and qualified. As terms of
3 members so appointed expire, their successors shall be
4 appointed for terms to expire the first day in July 3 years
5 thereafter, and until their successors are appointed and
6 qualified. Members of the Board serving prior to the effective
7 date of this amendatory Act of the 95th General Assembly shall
8 be discharged of their duties and replaced by members appointed
9 pursuant to this Section in the sequence in which those prior
10 serving members were appointed.
11     Any vacancy in the Board occurring for any reason other
12 than expiration of term shall be filled for the unexpired term
13 in the same manner as the original appointment.
14     Any member of the Board may be removed by the Governor for
15 neglect of duty, misfeasance, malfeasance, or nonfeasance in
16 office.
17     Board members shall receive as compensation for their
18 services $250 for each day they are in attendance at any
19 official board meeting, but in no event shall members receive
20 more than $3,000 per year. They shall receive no other
21 compensation for their services, but shall be reimbursed for
22 necessary traveling and other reasonable expenses incurred in
23 the performance of their official duties. All such compensation
24 and reimbursement shall be paid from proceeds of the
25 Concession.
26     The Board shall hold at least one meeting each quarter of

 

 

HB2055 Engrossed - 12 - LRB095 01509 AMC 21511 b

1 the fiscal year. In addition, special meetings may be called by
2 the chairman, any 4 Board members, or the Director of the
3 Department, upon delivery of 72 hours' written notice to each
4 member. All Board meetings shall be open to the public pursuant
5 to the Open Meetings Act.
6     Four members of the Board shall constitute a quorum, and 4
7 votes shall be required for any final determination by the
8 Board. The Board shall keep a complete and accurate record of
9 all its meetings.
10     The Board shall have general responsibility for the
11 implementation of this Act and the oversight and implementation
12 of any Management and Concession Agreement. The Board shall
13 have jurisdiction and oversight over all Lottery and Concession
14 operations governed by this Act and shall have all powers
15 necessary and proper to fully and effectively execute the
16 provisions of this Act. Its duties include, without limitation,
17 the following:
18         (1) to conduct all hearings pertaining to rules and
19     regulations promulgated under this Act;
20         (2) to promulgate such rules and regulations as in its
21     judgment may be necessary to protect or enhance the
22     credibility and integrity of the Lottery and enforce the
23     provisions of the Management and Concession Agreement
24     authorized by this Act and the regulatory process under
25     this Act;
26         (3) to be present through its inspectors and agents any

 

 

HB2055 Engrossed - 13 - LRB095 01509 AMC 21511 b

1     time Lottery operations are conducted pursuant to this Act
2     or the Management and Concession Agreement for the purpose
3     of determining compliance therewith, receiving complaints
4     from the public, and conducting such other investigations
5     into the conduct of Lottery games and operations and the
6     maintenance of all Lottery equipment as from time to time
7     the Board may deem necessary and proper;
8         (4) to implement and administer the Concession and
9     Management Agreement, including, without limitation, the
10     supervision and administration of the operation of the
11     Lottery in accordance with this Act, the rules and
12     regulations of the Board adopted hereunder, and the terms
13     of the Management and Concession Agreement;
14         (5) to investigate parties providing Concession and
15     Lottery-related services;
16         (6) to have jurisdiction and supervision over all
17     Lottery and Concession operations;
18         (7) to promulgate rules and regulations for the purpose
19     of administering the provisions of this Act and the
20     Management and Concession Agreement and to prescribe
21     rules, regulations, and conditions under which the Lottery
22     shall be conducted; those rules and regulations are to
23     provide for the prevention of practices detrimental to the
24     public interest and for the best interests of citizens of
25     the State, including rules and regulations regarding
26     inspection;

 

 

HB2055 Engrossed - 14 - LRB095 01509 AMC 21511 b

1         (8) to enter the office, facilities, or other places of
2     business of a Concessionaire, where evidence of the
3     compliance or noncompliance with the provisions of this Act
4     or the Management and Concession Agreement is likely to be
5     found;
6         (9) to investigate alleged violations of this Act or
7     the rules of the Board and to take appropriate disciplinary
8     action against a Concessionaire and its contractors and
9     licensees for a violation, or institute appropriate legal
10     action for enforcement, or both;
11         (10) to ensure that any Concessionaire maintains
12     appropriate standards for Lottery ticket vendors;
13         (11) to require that records, including financial or
14     other statements of any Concessionaire, manager, or
15     operator under this Act, shall be kept in such manner as
16     prescribed by the Board and that any such Concessionaire,
17     manager, or operator regularly submit to the Board a
18     balance sheet and profit and loss statement, list of the
19     stockholders or other persons having a beneficial interest
20     in such amounts as may be determined by the Board, and any
21     other information the Board deems necessary in order to
22     effectively administer this Act and all rules,
23     regulations, orders, and final decisions promulgated under
24     this Act;
25         (12) to conduct hearings, issue subpoenas for the
26     attendance of witnesses and subpoenas duces tecum for the

 

 

HB2055 Engrossed - 15 - LRB095 01509 AMC 21511 b

1     production of books, records, and other pertinent
2     documents in accordance with the Illinois Administrative
3     Procedure Act, and to administer oaths and affirmations to
4     the witnesses, when, in the judgment of the Board, it is
5     necessary to administer or enforce this Act or the Board
6     rules;
7         (13) to hire employees to gather information, conduct
8     investigations, and carry out any other tasks contemplated
9     under this Act;
10         (14) to delegate the execution of any of its powers
11     under this Act for the purpose of administering and
12     enforcing this Act and its rules and regulations; and
13         (15) to take any other action as may be reasonable or
14     appropriate to enforce this Act and its rules and
15     regulations.
16     The Board may seek and shall receive the cooperation of the
17 Department of State Police in conducting background
18 investigations of parties and in fulfilling its
19 responsibilities under this Section. Costs incurred by the
20 Department of State Police as a result of that cooperation
21 shall be paid by the Board in conformance with the requirements
22 of Section 2605-400 of the Department of State Police Law.
23     In the event that the State shall enter into a Management
24 and Concession Agreement, the Board may instruct the
25 Superintendent, on behalf of the Concessionaire, to enter into
26 an agreement or agreements with the management of state

 

 

HB2055 Engrossed - 16 - LRB095 01509 AMC 21511 b

1 lotteries operated pursuant to the laws of other states for the
2 purpose of creating and operating a multi-state lottery game
3 wherein a separate and distinct prize pool would be combined to
4 award larger prizes to the public than could be offered by the
5 several state lotteries individually. In the event that the
6 State shall enter into a Management and Concession Agreement,
7 no tickets or shares offered in connection with a multi-state
8 lottery game shall be sold within the State, except those
9 offered by the Concessionaire pursuant to the terms of the
10 Management and Concession Agreement and this amendatory Act of
11 the 95th General Assembly. No such agreement shall purport to
12 pledge the full faith and credit of the State of Illinois. No
13 multi-state game prize awarded to a nonresident of Illinois,
14 with respect to a ticket or share purchased in a state other
15 than the State of Illinois, shall be deemed to be a prize
16 awarded under this Act for the purpose of taxation under the
17 Illinois Income Tax Act.
 
18     (20 ILCS 1605/7.1)  (from Ch. 120, par. 1157.1)
19     Sec. 7.1. Rules and regulations. The Department may shall
20 promulgate such rules and regulations governing the
21 establishment and operation of a State lottery as it deems
22 necessary to carry out the purposes of this Act. Such rules and
23 regulations shall be subject to the provisions of The Illinois
24 Administrative Procedure Act. If the State enters into a
25 Management and Concession Agreement pursuant to which a

 

 

HB2055 Engrossed - 17 - LRB095 01509 AMC 21511 b

1 Concessionaire is authorized to manage or operate the Lottery,
2 the Board shall assume the Department's authorities and
3 discharge the Department's duties under this Section and
4 Section 7.2 of this Act. The Division may shall issue written
5 game rules, play instructions, directives, operations manuals,
6 brochures, or any other publications necessary to conduct
7 specific games, as authorized by rule by the Department. Any
8 written game rules, play instructions, directives, operations
9 manuals, brochures, or other game publications issued by the
10 Division that relate to a specific lottery game shall be
11 maintained as a public record in the Division's principal
12 office, and made available for public inspection and copying
13 but shall be exempt from the rulemaking procedures of the
14 Illinois Administrative Procedure Act. However, when such
15 written materials contain any policy of general applicability,
16 the Division shall formulate and adopt such policy as a rule in
17 accordance with the provisions of the Illinois Administrative
18 Procedure Act. In addition, the Division shall publish each
19 January in the Illinois Register a list of all game-specific
20 rules, play instructions, directives, operations manuals,
21 brochures, or other game-specific publications issued by the
22 Division during the previous year, if any, and instructions
23 concerning how the public may obtain copies of these materials
24 from the Division. In the event that the State enters into a
25 Management and Concession Agreement, this Section 7.1 shall not
26 apply and the Concessionaire shall be permitted to offer game

 

 

HB2055 Engrossed - 18 - LRB095 01509 AMC 21511 b

1 specific material in accordance with the provisions of this
2 Act, the rules and regulations of the Board adopted hereunder,
3 and the terms of the Management and Concession Agreement.
4 (Source: P.A. 94-776, eff. 5-19-06.)
 
5     (20 ILCS 1605/7.2)  (from Ch. 120, par. 1157.2)
6     Sec. 7.2. Matters included in rules and regulations. The
7 rules and regulations of the Department or, if the State enters
8 into a Management and Concession Agreement pursuant to which a
9 Concessionaire is authorized to manage or operate the lottery,
10 the Board may include, but shall not be limited to, the
11 following:
12     (1) The types of lotteries to be conducted. ;
13     (2) The price, or prices, of tickets or shares in the
14 lottery. ;
15     (3) The numbers and sizes of the prizes on the winning
16 tickets or shares. ;
17     (4) The manner of selecting the winning tickets or shares. ;
18     (5) The manner of payment of prizes to the holders of
19 winning tickets or shares. ;
20     (6) The frequency of the drawing or selections of winning
21 tickets or shares, without limitation. ;
22     (7) Without limit to number, the type or types of locations
23 at which tickets or shares may be sold. ;
24     (8) The method to be used in selling tickets or shares. ;
25     (9) The manner and amount of compensation, if any, to be

 

 

HB2055 Engrossed - 19 - LRB095 01509 AMC 21511 b

1 paid licensed sales agents necessary to provide for the
2 adequate availability of tickets or shares to prospective
3 buyers and for the convenience of the public. ;
4     (10) (Blank). The apportionment of the total revenues
5 accruing from the sale of lottery tickets or shares and from
6 all other sources among (i) the payment of prizes to the
7 holders of winning tickets or shares, (ii) the payment of costs
8 incurred in the operation and administration of the lottery,
9 including the expenses of the Department and the costs
10 resulting from any contract or contracts entered into for
11 promotional, advertising or operational services or for the
12 purchase or lease of lottery equipment and materials, and (iii)
13 for monthly transfers to the Common School Fund. The net
14 revenues accruing from the sale of lottery tickets shall be
15 determined by deducting from total revenues the payments
16 required by paragraphs (i) and (ii) of this subsection.
17     (11) Such other matters necessary or desirable for the
18 efficient and economical operation and administration of the
19 lottery or for the implementation and oversight of any
20 Management and Concession Agreement pursuant to which a
21 Concessionaire is authorized to manage or operate the Lottery
22 and for the convenience of the purchasers of tickets or shares
23 and the holders of winning tickets or shares.
24     Any rules and regulations of the Department with respect to
25 monthly transfers to the Common School Fund are subject to
26 Section 21.2.

 

 

HB2055 Engrossed - 20 - LRB095 01509 AMC 21511 b

1 (Source: P.A. 84-1128.)
 
2     (20 ILCS 1605/7.3)  (from Ch. 120, par. 1157.3)
3     Sec. 7.3. Hearings on violations; other hearings. The Board
4 shall designate Hearing Officers who shall conduct hearings
5 upon complaints charging violations of this Act or of
6 regulations thereunder, and such other hearings as may be
7 provided by Department rule. The Board may hear appeals from
8 the recommended decisions of its Hearing Officers in accordance
9 with procedures established by Department rule. Whenever the
10 Department issues a Notice of Assessment under Section 21 of
11 this Act, the lottery sales agent may protest such Notice by
12 filing a request for hearing within 20 days of the date of such
13 Notice.
14 (Source: P.A. 85-1224; 86-1475.)
 
15     (20 ILCS 1605/7.4)  (from Ch. 120, par. 1157.4)
16     Sec. 7.4. Studies and investigations of lottery. The
17 Department or, if the State enters into a Management and
18 Concession Agreement pursuant to which a Concessionaire is
19 authorized to manage or operate the Lottery, the Board shall
20 carry on a continuous study and investigation of the lottery
21 throughout the State (1) for the purpose of ascertaining any
22 defects in this Act or in the rules and regulations issued
23 under this Act whereby any abuses in the administration and
24 operation of the lottery or any evasion of this Act or the

 

 

HB2055 Engrossed - 21 - LRB095 01509 AMC 21511 b

1 rules and regulations may arise or be practiced, (2) for the
2 purpose of formulating recommendations for changes in this Act
3 and the rules and regulations promulgated hereunder to prevent
4 such abuses and evasions, (3) to guard against the use of this
5 Act and the rules and regulations issued hereunder as a cloak
6 for the carrying on of organized gambling and crime, and (4) to
7 insure that the law and rules and regulations shall be in such
8 form and be so administered as to serve the true purposes of
9 this Act.
10 (Source: P.A. 84-1128.)
 
11     (20 ILCS 1605/7.5)  (from Ch. 120, par. 1157.5)
12     Sec. 7.5. Reports on matters requiring changes in law. The
13 Board shall report to the Governor, the Attorney General, the
14 Speaker of the House, the President of the Senate, the minority
15 leaders of both houses, and such other State officers as from
16 time to time it deems appropriate, any matters which it deems
17 to require an immediate change in the laws of this State in
18 order to prevent abuses and evasions of this Act or rules and
19 regulations promulgated thereunder or to rectify undesirable
20 conditions in connection with the administration or operation
21 of the lottery.
22 (Source: P.A. 84-1128.)
 
23     (20 ILCS 1605/7.6)  (from Ch. 120, par. 1157.6)
24     Sec. 7.6. Recommendations. The Board shall advise and make

 

 

HB2055 Engrossed - 22 - LRB095 01509 AMC 21511 b

1 recommendations to the Superintendent or the Director
2 regarding the functions and operations of the State Lottery. A
3 copy of all such recommendations shall also be forwarded to the
4 Governor, the Attorney General, the Speaker of the House, the
5 President of the Senate and the minority leaders of both
6 houses.
7 (Source: P.A. 94-776, eff. 5-19-06.)
 
8     (20 ILCS 1605/7.8)  (from Ch. 120, par. 1157.8)
9     Sec. 7.8. Annual report; report as public report. The
10 Department, or, if the State enters into a Management and
11 Concession Agreement pursuant to which a Concessionaire is
12 authorized to manage or operate the Lottery, the Board shall
13 make an annual report regarding the work of the Board to the
14 Governor, the Speaker of the House, the President of the
15 Senate, and the minority leaders of both houses, such report to
16 be a public report.
17 (Source: P.A. 84-1128.)
 
18     (20 ILCS 1605/7.8a)  (from Ch. 120, par. 1157.8a)
19     Sec. 7.8a. Advertising policy. The Board shall establish
20 advertising policy to ensure that advertising content and
21 practices do not target with the intent to exploit specific
22 groups or economic classes of people, and that its content is
23 accurate and not misleading. The Board shall review, at least
24 quarterly, all past advertising and proposed concepts for major

 

 

HB2055 Engrossed - 23 - LRB095 01509 AMC 21511 b

1 media campaigns to ensure that they do not target with the
2 intent to exploit specific groups or economic classes of
3 people, and that their content is accurate and not misleading.
4 If the Board finds that advertising conflicts with such policy,
5 it shall have the authority to direct the Department to cease
6 that advertising. 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 and the
9 Concessionaire has the right to undertake marketing and
10 advertising activities, the Concessionaire shall submit, for
11 the Board's review of content and determination of compliance
12 with this Section, all marketing and advertising materials
13 pursuant to such rules and policies as the Board may promulgate
14 from time to time. If the Board finds that action proposed or
15 taken by the Concessionaire conflicts with those rules or
16 policies, the Board shall have the authority to direct the
17 Concessionaire to cease or refrain from taking that action.
18 (Source: P.A. 85-183.)
 
19     (20 ILCS 1605/7.11)  (from Ch. 120, par. 1157.11)
20     Sec. 7.11. (Repealed.) The Division may establish and
21 collect nominal charges for promotional products ("premiums")
22 and other promotional materials produced or acquired by the
23 Division as part of its advertising and promotion activities.
24 Such premiums or other promotional materials may be sold to
25 individuals, government agencies and not-for-profit

 

 

HB2055 Engrossed - 24 - LRB095 01509 AMC 21511 b

1 organizations, but not to for-profit enterprises for the
2 purpose of resale. Other State agencies shall be charged no
3 more than the cost to the Division of the premium or
4 promotional material. All proceeds from the sale of premiums or
5 promotional materials shall be deposited in the State Lottery
6 Fund in the State Treasury.
7 (Source: P.A. 94-776, eff. 5-19-06.)
 
8     (20 ILCS 1605/8)  (from Ch. 120, par. 1158)
9     Sec. 8. Compelling appearance of witnesses and production
10 of documents; oaths and affirmations; dispositions. In
11 connection with any hearing held pursuant to Section 6.1 or 7.3
12 of this Act, the Board, or any Hearing Officer appointed by the
13 Board, may subpoena and compel the appearance of witnesses and
14 production of documents, papers, books, records and other
15 evidence before it in any matter over which it has
16 jurisdiction, control or supervision. The Board, or any
17 appointed Hearing Officer, shall have the power to administer
18 oaths and affirmations to persons whose testimony is required.
19 If a person subpoenaed to attend in any such proceeding or
20 hearing fails to obey the command of the subpoena without
21 reasonable cause, or if a person in attendance in any such
22 proceeding or hearing refuses, without lawful cause, to be
23 examined or to answer a legal or pertinent question or to
24 exhibit any books, account, record or other document when
25 ordered so to do by the Board or its Hearing Officer, the Board

 

 

HB2055 Engrossed - 25 - LRB095 01509 AMC 21511 b

1 or Hearing Officer may apply to the circuit court, upon proof
2 by affidavit of the facts, for an order returnable in not less
3 than 2 nor more than 10 days, or as the court may prescribe,
4 directing such person to show cause before the court why he or
5 she should not comply with such subpoena or such order.
6     Upon return of the order, the court shall examine such
7 person under oath, and if the court determines, after giving
8 such person an opportunity to be heard, that he or she refused
9 without legal excuse to comply with such subpoena or such order
10 of the Board or Hearing Officer, the court may order such
11 person to comply therewith immediately and any failure to obey
12 the order of the court may be punished as a contempt of court.
13     All subpoenas and subpoenas duces tecum issued under the
14 provisions of this Act may be served by any person of lawful
15 age. The fees of witnesses for attendance and travel shall be
16 the same as the fees of witnesses before the circuit courts of
17 this State. When the witness is subpoenaed at the instance of
18 the Department or any officer or employee thereof, such fees
19 shall be paid in the same manner as other expenses of the
20 Department. When the witness is subpoenaed at the instance of
21 any other party to any such proceeding, the Department may
22 require that the cost of service of the subpoena or subpoena
23 duces tecum and the fee of the witness be borne by the party at
24 whose instance the witness is summoned. In such case, and on
25 motion of the Department, the Board or its Hearing Officer may
26 require a deposit to cover the cost of such service and witness

 

 

HB2055 Engrossed - 26 - LRB095 01509 AMC 21511 b

1 fees.
2     The Department, or any officer or employee thereof, or any
3 other party to a hearing before the Board or its Hearing
4 Officers, may cause the depositions of witnesses within the
5 State to be taken in the manner prescribed by law for like
6 depositions in civil actions in courts of this State, and to
7 that end compel the attendance of witnesses and the production
8 of books, papers, records or memoranda.
9 (Source: P.A. 85-1224.)
 
10     (20 ILCS 1605/8.1)  (from Ch. 120, par. 1158.1)
11     Sec. 8.1. Contracts; competitive negotiation. Contracts
12 for State Lottery tickets or shares or for other State Lottery
13 game related services shall be obtained through the utilization
14 of competitive negotiation procedures whenever practicable.
15 (Source: P.A. 84-268.)
 
16     (20 ILCS 1605/9)  (from Ch. 120, par. 1159)
17     Sec. 9. Duties of Superintendent. The Superintendent, as
18 administrative head of the Division, shall direct and supervise
19 all its administrative and technical activities and shall
20 report to the Director. In addition to the duties imposed upon
21 him elsewhere in this Act, it shall be the Superintendent's
22 duty:
23     a. To supervise and administer the operation of the lottery
24 in accordance with the provisions of this Act or such rules and

 

 

HB2055 Engrossed - 27 - LRB095 01509 AMC 21511 b

1 regulations of the Department adopted thereunder.
2     b. To attend meetings of the Board or to appoint a designee
3 to attend in his stead.
4     c. To employ and direct such personnel in accord with the
5 Personnel Code, as may be necessary to carry out the purposes
6 of this Act. The Superintendent may, subject to the approval of
7 the Director, use the services, personnel, or facilities of the
8 Department. In addition, the Superintendent may by agreement
9 secure such services as he or she may deem necessary from any
10 other department, agency, or unit of the State government, and
11 may employ and compensate such consultants and technical
12 assistants as may be required and is otherwise permitted by
13 law.
14     d. To license, in accordance with the provisions of
15 Sections 10 and 10.1 of this Act and the rules and regulations
16 of the Department adopted thereunder, or to ensure the
17 retention, pursuant to the terms of a Management and Concession
18 Agreement, as agents to sell lottery tickets such persons as in
19 his opinion will best serve the public convenience and promote
20 the sale of tickets or shares. The Superintendent may require a
21 bond from every licensed agent, in such amount as provided in
22 the rules and regulations of the Department. Every licensed
23 agent shall prominently display his license, or a copy thereof,
24 as provided in the rules and regulations of the Department.
25     e. To suspend or revoke any license issued pursuant to this
26 Act or the rules and regulations promulgated by the Department

 

 

HB2055 Engrossed - 28 - LRB095 01509 AMC 21511 b

1 thereunder.
2     f. To confer regularly as necessary or desirable and not
3 less than once every month with the Lottery Control Board on
4 the operation and administration of the Lottery; to make
5 available for inspection by the Board or any member of the
6 Board, upon request, all books, records, files, and other
7 information and documents of his office; to advise the Board
8 and recommend such rules and regulations and such other matters
9 as he deems necessary and advisable to improve the operation
10 and administration of the lottery or the implementation and
11 oversight of a Management and Concession Agreement.
12     g. To enter into contracts for the operation of the
13 lottery, or any part thereof, and into contracts for the
14 promotion of the lottery on behalf of the Department with any
15 person, firm or corporation, to perform any of the functions
16 provided for in this Act or the rules and regulations
17 promulgated thereunder. The Department shall not expend State
18 funds on a contractual basis for such functions unless those
19 functions and expenditures are expressly authorized by the
20 General Assembly.
21     h. To enter into a Management and Concession Agreement that
22 authorizes a Concessionaire to enter into an agreement or
23 agreements with the management of state lotteries operated
24 pursuant to the laws of other states for the purpose of
25 creating and operating a multi-state lottery game wherein a
26 separate and distinct prize pool would be combined to award

 

 

HB2055 Engrossed - 29 - LRB095 01509 AMC 21511 b

1 larger prizes to the public than could be offered by the
2 several state lotteries, individually or, if the State enters
3 into a Management and Concession Agreement pursuant to which a
4 Concessionaire is authorized to manage or operate the Lottery,
5 to authorize the Concessionaire to take such action. No tickets
6 or shares offered in connection with a multi-state lottery game
7 shall be sold within the State of Illinois, except those
8 offered by and through the Department or, if the State enters
9 into a Management and Concession Agreement pursuant to which a
10 Concessionaire is authorized to manage or operate the Lottery,
11 by the Concessionaire pursuant to the terms of the Management
12 and Concession Agreement and this amendatory Act of the 95th
13 General Assembly. No such agreement shall purport to pledge the
14 full faith and credit of the State of Illinois, nor shall the
15 Department expend State funds on a contractual basis in
16 connection with any such game unless such expenditures are
17 expressly authorized by the General Assembly, provided,
18 however, that in the event of error or omission by the Illinois
19 State Lottery in the conduct of the game, as determined by the
20 multi-state game directors, except as may be and to the extent
21 modified by the terms of a Management and Concession Agreement,
22 the Department shall be authorized to pay a prize winner or
23 winners the lesser of a disputed prize or $1,000,000, any such
24 payment to be made solely from funds appropriated for game
25 prize purposes. Except as may be and to the extent modified by
26 the terms of a Management and Concession Agreement, the The

 

 

HB2055 Engrossed - 30 - LRB095 01509 AMC 21511 b

1 Department shall be authorized to share in the ordinary
2 operating expenses of any such multi-state lottery game, from
3 funds appropriated by the General Assembly, and in the event
4 the multi-state game control offices are physically located
5 within the State of Illinois, the Department is authorized to
6 advance start-up operating costs not to exceed $150,000,
7 subject to proportionate reimbursement of such costs by the
8 other participating state lotteries. The Department shall be
9 authorized to share proportionately in the costs of
10 establishing a liability reserve fund from funds appropriated
11 by the General Assembly. The Department is authorized to
12 transfer prize award funds attributable to Illinois sales of
13 multi-state lottery game tickets to the multi-state control
14 office, or its designated depository, for deposit to such game
15 pool account or accounts as may be established by the
16 multi-state game directors, the records of which account or
17 accounts shall be available at all times for inspection in an
18 audit by the Auditor General of Illinois and any other auditors
19 pursuant to the laws of the State of Illinois. No multi-state
20 game prize awarded to a nonresident of Illinois, with respect
21 to a ticket or share purchased in a state other than the State
22 of Illinois, shall be deemed to be a prize awarded under this
23 Act for the purpose of taxation under the Illinois Income Tax
24 Act. All of the net revenues accruing from the sale of
25 multi-state lottery tickets or shares shall be transferred into
26 the Common School Fund pursuant to Section 7.2. The Department

 

 

HB2055 Engrossed - 31 - LRB095 01509 AMC 21511 b

1 shall promulgate such rules as may be appropriate to implement
2 the provisions of this Section.
3     i. To make a continuous study and investigation of (1) the
4 operation and the administration of similar laws which may be
5 in effect in other states or countries, (2) any literature on
6 the subject which from time to time may be published or
7 available, (3) any Federal laws which may affect the operation
8 of the lottery, and (4) the reaction of Illinois citizens to
9 existing and potential features of the lottery with a view to
10 recommending or effecting changes that will tend to serve the
11 purposes of this Act.
12     j. To report monthly to the State Treasurer and the Lottery
13 Control Board a full and complete statement of lottery
14 revenues, prize disbursements and other expenses for each
15 quarter month and the amounts to be transferred to the Common
16 School Fund pursuant to Section 7.2 or such other funds as are
17 otherwise authorized by Section 21.2 of this Act, and to make
18 an annual report, which shall include a full and complete
19 statement of lottery or concession revenues, prize
20 disbursements and other expenses, to the Governor and the
21 Board. All reports required by this subsection shall be public
22 and copies of all such reports shall be sent to the Speaker of
23 the House, the President of the Senate, and the minority
24 leaders of both houses.
25     k. In the event that the State shall enter into a
26 Management and Concession Agreement, it shall be the duty of

 

 

HB2055 Engrossed - 32 - LRB095 01509 AMC 21511 b

1 the Superintendent, together with the Board, to supervise and
2 administer the operations of the lottery in accordance with the
3 provisions of this Act, the rules and regulations of the Board
4 adopted hereunder, and the terms of the Management and
5 Concession Agreement.
6 (Source: P.A. 94-776, eff. 5-19-06.)
 
7     (20 ILCS 1605/10)  (from Ch. 120, par. 1160)
8     Sec. 10. Licensing of agents to sell lottery tickets or
9 shares. The Division, upon application therefor on forms
10 prescribed by the Division, and upon a determination by the
11 Division that the applicant meets all of the qualifications
12 specified in this Act, shall issue a license as an agent to
13 sell lottery tickets or shares. No license as an agent to sell
14 lottery tickets or shares shall be issued to any person to
15 engage in business exclusively as a lottery sales agent.
16     Before issuing such license the Superintendent shall
17 consider (a) the financial responsibility and security of the
18 person and his business or activity, (b) the accessibility of
19 his place of business or activity to the public, (c) the
20 sufficiency of existing licenses to serve the public
21 convenience, (d) the volume of expected sales, and (e) such
22 other factors as he or she may deem appropriate.
23     Until September 1, 1987, the provisions of Sections 2a, 4,
24 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 6, 6a, 6b, 6c, 8, 9,
25 10, 12 and 13.5 of the Retailers' Occupation Tax Act which are

 

 

HB2055 Engrossed - 33 - LRB095 01509 AMC 21511 b

1 not inconsistent with this Act shall apply to the subject
2 matter of this Act to the same extent as if such provisions
3 were included in this Act. For purposes of this Act, references
4 in such incorporated Sections of the Retailers' Occupation Tax
5 Act to retailers, sellers or persons engaged in the business of
6 selling tangible personal property mean persons engaged in
7 selling lottery tickets or shares; references in such
8 incorporated Sections to sales of tangible personal property
9 mean the selling of lottery tickets or shares; and references
10 in such incorporated Sections to certificates of registration
11 mean licenses issued under this Act. The provisions of the
12 Retailers' Occupation Tax Act as heretofore applied to the
13 subject matter of this Act shall not apply with respect to
14 tickets sold by or delivered to lottery sales agents on and
15 after September 1, 1987, but such provisions shall continue to
16 apply with respect to transactions involving the sale and
17 delivery of tickets prior to September 1, 1987.
18     All licenses issued by the Division under this Act shall be
19 valid for a period not to exceed 2 years after issuance unless
20 sooner revoked, canceled or suspended as in this Act provided.
21 No license issued under this Act shall be transferable or
22 assignable. Such license shall be conspicuously displayed in
23 the place of business conducted by the licensee in Illinois
24 where lottery tickets or shares are to be sold under such
25 license.
26     For purposes of this Section, the term "person" shall be

 

 

HB2055 Engrossed - 34 - LRB095 01509 AMC 21511 b

1 construed to mean and include an individual, association,
2 partnership, corporation, club, trust, estate, society,
3 company, joint stock company, receiver, trustee, referee, any
4 other person acting in a fiduciary or representative capacity
5 who is appointed by a court, or any combination of individuals.
6 "Person" includes any department, commission, agency or
7 instrumentality of the State, including any county, city,
8 village, or township and any agency or instrumentality thereof.
9     If the State enters into a Management and Concession
10 Agreement pursuant to which the State authorizes a
11 Concessionaire to retain agents to distribute lottery tickets,
12 the Division shall cease issuing licenses to agents to sell
13 lottery tickets or shares during the term of the Management and
14 Concession Agreement. In retaining such agents, the
15 Concessionaire shall apply appropriate criteria in determining
16 suitability of those agents, including without limitation,
17 criteria establishing the ineligibility for a license as set
18 forth in Section 10.1 of this Act. Further, the Concessionaire
19 shall provide to the Department, not less than monthly, a list
20 of all agents the Concessionaire has engaged to distribute
21 lottery tickets or shares, which statement shall include a
22 certification that all such agents comply with the eligibility
23 standards set forth in this Act.
24 (Source: P.A. 94-776, eff. 5-19-06.)
 
25     (20 ILCS 1605/10.1)  (from Ch. 120, par. 1160.1)

 

 

HB2055 Engrossed - 35 - LRB095 01509 AMC 21511 b

1     Sec. 10.1. Persons ineligible for licenses. The following
2 are ineligible for any license under this Act:
3     (a) any person who has been convicted of a felony;
4     (b) any person who is or has been a professional gambler or
5 gambling promoter, except when the person acted in such a
6 capacity pursuant to and in compliance with all applicable law;
7     (c) any person who has engaged in bookmaking or other forms
8 of illegal gambling;
9     (d) any person who is not of good character and reputation
10 in the community in which he resides;
11     (e) any person who has been found guilty of any fraud or
12 misrepresentation in any connection;
13     (f) any firm or corporation in which a person defined in
14 (a), (b), (c), (d) or (e) has a proprietary, equitable or
15 credit interest of 5% or more.
16     (g) any organization in which a person defined in (a), (b),
17 (c), (d) or (e) is an officer, director, or managing agent,
18 whether compensated or not;
19     (h) any organization in which a person defined in (a), (b),
20 (c), (d), or (e) is to participate in the management or sales
21 of lottery tickets or shares.
22     However, with respect to persons defined in (a), the
23 Department may grant any such person a license under this Act
24 when:
25     1) at least 10 years have elapsed since the date when the
26 sentence for the most recent such conviction was satisfactorily

 

 

HB2055 Engrossed - 36 - LRB095 01509 AMC 21511 b

1 completed;
2     2) the applicant has no history of criminal activity
3 subsequent to such conviction;
4     3) the applicant has complied with all conditions of
5 probation, conditional discharge, supervision, parole or
6 mandatory supervised release; and
7     4) the applicant presents at least 3 letters of
8 recommendation from responsible citizens in his community who
9 personally can attest that the character and attitude of the
10 applicant indicate that he is unlikely to commit another crime.
11     The Division may revoke, without notice or a hearing, the
12 license of any agent who violates this Act or any rule or
13 regulation promulgated pursuant to this Act. If the State
14 enters into a Management and Concession Agreement pursuant to
15 which the State authorizes a Concessionaire to engage any sales
16 agent, the Division shall retain the power to revoke any such
17 agency pursuant to the provisions of this Act. However, if the
18 Division does revoke a license without notice and an
19 opportunity for a hearing, the Division shall, by appropriate
20 notice, afford the person whose license has been revoked an
21 opportunity for a hearing within 30 days after the revocation
22 order has been issued. As a result of any such hearing, the
23 Division may confirm its action in revoking the license, or it
24 may order the restoration of such license.
25 (Source: P.A. 94-776, eff. 5-19-06.)
 

 

 

HB2055 Engrossed - 37 - LRB095 01509 AMC 21511 b

1     (20 ILCS 1605/10.1a)  (from Ch. 120, par. 1160.1a)
2     Sec. 10.1a. Failure to satisfy tax Act requirements. In
3 addition to other grounds specified in this Act, the Division
4 shall refuse to issue and shall suspend the license of any
5 lottery sales agency who fails to file a return, or to pay the
6 tax, penalty or interest shown in a filed return, or to pay any
7 final assessment of tax, penalty or interest, as required by
8 any tax Act administered by the Department, until such time as
9 the requirements of any such tax Act are satisfied, unless the
10 agency is contesting, in accordance with the procedures
11 established by the appropriate revenue Act, its liability for
12 the tax or the amount of tax. If the State enters into a
13 Management and Concession Agreement pursuant to which the State
14 authorizes a Concessionaire to engage any sales agent, the
15 Division may direct the Concessionaire to refrain from engaging
16 or to suspend the engagement of any party acting or seeking to
17 act as a sales agent. The Division shall affirmatively verify
18 the tax status of every sales agency before issuing or renewing
19 a license, except that, if the State enters into a Management
20 and Concession Agreement pursuant to which the State authorizes
21 a Concessionaire to engage any sales agent, the Division shall
22 verify the tax status of each agent from the list of agents
23 provided by the Concessionaire pursuant to Section 10 of this
24 Act. For purposes of this Section, a sales agency shall not be
25 considered delinquent in the payment of a tax if the agency (a)
26 has entered into an agreement with the Department for the

 

 

HB2055 Engrossed - 38 - LRB095 01509 AMC 21511 b

1 payment of all such taxes that are due and (b) is in compliance
2 with the agreement.
3 (Source: P.A. 94-776, eff. 5-19-06.)
 
4     (20 ILCS 1605/10.2)  (from Ch. 120, par. 1160.2)
5     Sec. 10.2. Application and other fees. Each application
6 for a new lottery license must be accompanied by a one-time
7 application fee of $50; the Division, however, may waive the
8 fee for licenses of limited duration as provided by Department
9 rule. Each application for renewal of a lottery license must be
10 accompanied by a renewal fee of $25. Each lottery licensee
11 granted on-line status pursuant to the Department's rules must
12 pay a fee of $10 per week as partial reimbursement for
13 telecommunications charges incurred by the Department in
14 providing access to the lottery's on-line gaming system. The
15 Department, by rule, may increase or decrease the amount of
16 these fees. No Concessionaire that may retain sales agents for
17 the Lottery pursuant to the terms of a Management and
18 Concession Agreement may assess any fee pursuant to this
19 Section.
20 (Source: P.A. 93-840, eff. 7-30-04; 94-776, eff. 5-19-06.)
 
21     (20 ILCS 1605/10.3)  (from Ch. 120, par. 1160.3)
22     Sec. 10.3. Proceeds received by sales agent. All proceeds
23 from the sale of lottery tickets or shares received by a person
24 in the capacity of a sales agent shall constitute a trust fund

 

 

HB2055 Engrossed - 39 - LRB095 01509 AMC 21511 b

1 until paid to the Department either directly, or through the
2 Department's authorized collection representative. Proceeds
3 shall include unsold instant tickets received by a sales agent
4 and cash proceeds of sale of any lottery products, net of
5 allowable sales commissions and credit for lottery prizes paid
6 to winners by sales agents. Sales proceeds and unsold instant
7 tickets shall be delivered to the Department or its authorized
8 collection representative upon demand. Sales agents shall be
9 personally liable for all proceeds which shall be kept separate
10 and apart from all other funds and assets and shall not be
11 commingled with any other funds or assets. In the case of a
12 sales agent who is not an individual, personal liability shall
13 attach to the owners and officers of the sales agent. The
14 Department shall have a right to file a lien upon all real and
15 personal property of any person who is personally liable under
16 this Section for any unpaid proceeds, which were to be
17 segregated as a trust fund under this Section, at any time
18 after such payment was to have been made. Such lien shall
19 include any interest and penalty provided for by this Act and
20 shall be deemed equivalent to, and have the same effect as, the
21 State tax lien under the Retailers' Occupation Tax Act. The
22 term "person" as used in this Section, and in Section 10.4 of
23 this Act, shall have the same meaning as provided in Section 10
24 of this Act. This Section, and Sections 10.4 and 10.5 of this
25 Act shall apply with respect to all lottery tickets or shares
26 generated by computer terminal, other electronic device, and

 

 

HB2055 Engrossed - 40 - LRB095 01509 AMC 21511 b

1 any other tickets delivered to sales agents on and after
2 September 1, 1987. 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 pursuant to
5 which the State shall receive any portion of Lottery revenue:
6 (i) the Concessionaire may be the Department's authorized
7 collection representative; and (ii) no such arrangement shall
8 diminish the Department's rights pursuant to this Section. For
9 purposes of this Section, "sales agent" includes any sales
10 agent engaged by a Concessionaire pursuant to the terms of a
11 Management and Concession Agreement.
12 (Source: P.A. 86-905.)
 
13     (20 ILCS 1605/10.4)  (from Ch. 120, par. 1160.4)
14     Sec. 10.4. Proceeds received by sales agent; violations.
15 Every person who shall violate the provisions of Section 10.3,
16 or who does not segregate and keep separate and apart from all
17 other funds and assets, all proceeds from the sale of lottery
18 tickets received by a person in the capacity of a sales agent,
19 shall upon conviction thereof be guilty of a Class 4 felony.
20 The provisions of this Section shall be enforced by the
21 Illinois Department of State Police and prosecuted by the
22 Attorney General.
23 (Source: P.A. 85-183; 86-1475.)
 
24     (20 ILCS 1605/10.5)  (from Ch. 120, par. 1160.5)

 

 

HB2055 Engrossed - 41 - LRB095 01509 AMC 21511 b

1     Sec. 10.5. Sales agent; insolvency. Whenever any person who
2 receives proceeds from the sale of lottery tickets in the
3 capacity of sales agent becomes insolvent, or dies insolvent,
4 the proceeds due the Department from such person or his estate
5 shall have preference over all debts or demands, except as
6 follows:
7     (a) Amounts due for necessary funeral expenses;
8     (b) Amounts due for medical care and medicine during his
9 most recent illness preceding death;
10     (c) Debts due to the United States;
11     (d) Debts due to the State of Illinois and all State and
12 local taxes; and
13     (e) Wages for labor performed within the 6 months
14 immediately preceding the death of such deceased person, not
15 exceeding $1,000 due to another person and provided further
16 that such proceeds shall be nondischargeable in insolvency
17 proceedings instituted pursuant to Chapter 7, Chapter 11, or
18 Chapter 13 of the Federal Bankruptcy Act.
19 (Source: P.A. 85-183.)
 
20     (20 ILCS 1605/10.6)  (from Ch. 120, par. 1160.6)
21     Sec. 10.6. Odds of winning. The Division shall make an
22 effort to more directly inform players of the odds of winning
23 prizes. This effort shall include, at a minimum, that the
24 Division require all ticket agents to display a placard stating
25 the odds of winning for each game offered by that agent. In the

 

 

HB2055 Engrossed - 42 - LRB095 01509 AMC 21511 b

1 event that the State shall enter into a Management and
2 Concession Agreement, the Division shall be relieved of its
3 duties under this Section 10.6 and the Concessionaire shall be
4 obligated to comply with the requirements of this Section 10.6.
5 (Source: P.A. 94-776, eff. 5-19-06.)
 
6     (20 ILCS 1605/10.7)
7     Sec. 10.7. Compulsive gambling.
8     (a) Each lottery sales agent shall post a statement
9 regarding obtaining assistance with gambling problems and
10 including a toll-free "800" telephone number providing crisis
11 counseling and referral services to families experiencing
12 difficulty as a result of problem or compulsive gambling. The
13 text of the statement shall be determined by rule by the
14 Department of Human Services, shall be no more than one
15 sentence in length, and shall be posted on the placard required
16 under Section 10.6. The signs shall be provided by the
17 Department of Human Services.
18     (b) The Division shall print a statement regarding
19 obtaining assistance with gambling problems, the text of which
20 shall be determined by rule by the Department of Human
21 Services, on all paper stock it provides to the general public.
22     (c) The Division shall print a statement of no more than
23 one sentence in length regarding obtaining assistance with
24 gambling problems and including a toll-free "800" number
25 providing crisis counseling and referral services to families

 

 

HB2055 Engrossed - 43 - LRB095 01509 AMC 21511 b

1 experiencing difficulty as a result of problem or compulsive
2 gambling on the back of all lottery tickets.
3     (d) If the State enters into a Management and Concession
4 Agreement pursuant to which a Concessionaire is authorized to
5 manage or operate the Lottery, the Concessionaire shall assume
6 and discharge all duties of the Division under subsections (a),
7 (b), and (c) of this Section.
8 (Source: P.A. 94-776, eff. 5-19-06.)
 
9     (20 ILCS 1605/11)  (from Ch. 120, par. 1161)
10     Sec. 11. Officers and employees; civil or criminal
11 penalties; devolution of powers or duties. Every officer and
12 employee shall for any offense be subject to the same penalty
13 or penalties, civil or criminal, as are prescribed by existing
14 law for the same offense by any officer or employee whose
15 powers or duties devolve upon him under this Act.
16 (Source: P.A. 78-3rd S.S.-20.)
 
17     (20 ILCS 1605/12)  (from Ch. 120, par. 1162)
18     Sec. 12. Public inspection and copying of records and data;
19 exceptions. The public inspection and copying of the records
20 and data of the Division and the Board shall be generally
21 governed by the provisions of the Freedom of Information Act
22 except that the following shall additionally be exempt from
23 inspection and copying:
24         (i) information privileged against introduction in

 

 

HB2055 Engrossed - 44 - LRB095 01509 AMC 21511 b

1     judicial proceedings;
2         (ii) internal communications of the several agencies;
3         (iii) information concerning secret manufacturing
4     processes or confidential data submitted by any person
5     under this Act;
6         (iv) any creative proposals, scripts, storyboards or
7     other materials prepared by or for the Division or a
8     Concessionaire under a Management and Concession
9     Agreement, prior to the placement of the materials in the
10     media, if the prior release of the materials would
11     compromise the effectiveness of an advertising campaign.
12 (Source: P.A. 94-776, eff. 5-19-06.)
 
13     (20 ILCS 1605/13)  (from Ch. 120, par. 1163)
14     Sec. 13. Right to prize; payment. Except as otherwise
15 provided in Section 13.1, no prize, nor any portion of a prize,
16 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 such
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 such a trust has been filed
22 with the Department along with a notarized letter of direction
23 from the settlor and no written notice of revocation has been
24 received by the Division prior to the settlor's death.
25 Following such a settlor's death and prior to any payment to

 

 

HB2055 Engrossed - 45 - LRB095 01509 AMC 21511 b

1 such a successor trustee, the Superintendent shall obtain from
2 the trustee a written agreement to indemnify and hold the
3 Department and the Division harmless with respect to any claims
4 that may be asserted against the Department or the Division
5 arising from payment to or through the trust. Notwithstanding
6 any other provision of this Section, any person pursuant to an
7 appropriate judicial order may be paid the prize to which a
8 winner is entitled, and all or part of any prize otherwise
9 payable by State warrant under this Section shall be withheld
10 upon certification to the State Comptroller from the Illinois
11 Department of Healthcare and Family Services Public Aid as
12 provided in Section 10-17.5 of The Illinois Public Aid Code.
13 The Director and the Superintendent shall be discharged of all
14 further liability upon payment of a prize pursuant to this
15 Section.
16     If the State enters into a Management and Concession
17 Agreement pursuant to which a payor other than the State, or a
18 department, division, agency, or other unit of the State shall
19 have the obligation to pay a prize, except as otherwise
20 provided in Section 13.1, neither a prize, nor any portion of a
21 prize, nor any right of any person to a prize awarded shall be
22 assignable. Any prize, or portion thereof remaining unpaid at
23 the death of a prize winner, may be paid to the estate of that
24 deceased prize winner, or to the trustee under a revocable
25 living trust established by the deceased prize winner as
26 settlor, provided that a copy of that trust has been delivered

 

 

HB2055 Engrossed - 46 - LRB095 01509 AMC 21511 b

1 to the third party prize payor along with a notarized letter of
2 direction from the settlor and no written notice of revocation
3 has been received by the third party prize payor prior to the
4 settlor's death. Following such a settlor's death and prior to
5 any payment to such a successor trustee, the third party prize
6 payor shall obtain from the trustee a written agreement to
7 indemnify and hold the third party prize payor and the State
8 harmless with respect to any claims that may be asserted
9 against such third party prize payor or the State arising from
10 the payment of the prize to or through the trust. The Director
11 and the Superintendent shall be discharged of all further
12 liability upon payment of a prize pursuant to this Section.
13 (Source: P.A. 93-465, eff. 1-1-04; 94-776, eff. 5-19-06;
14 revised 8-21-06.)
 
15     (20 ILCS 1605/14)  (from Ch. 120, par. 1164)
16     Sec. 14. Sale of ticket or share at greater than fixed
17 price; sale or resale of tickets or shares; charging a fee to
18 redeem winning ticket or share; punishment. No person shall
19 sell a ticket or share at a price greater than that fixed by
20 rule or regulation of the Department or the Division. No person
21 other than a licensed lottery sales agent or distributor or a
22 sales agent engaged by a Concessionaire pursuant to the terms
23 of a Management and Concession Agreement shall sell or resell
24 lottery tickets or shares. No person shall charge a fee to
25 redeem a winning ticket or share.

 

 

HB2055 Engrossed - 47 - LRB095 01509 AMC 21511 b

1     Any person convicted of violating this Section shall be
2 guilty of a Class B misdemeanor; provided, that if any offense
3 under this Section is a subsequent offense, the offender shall
4 be guilty of a Class 4 felony.
5 (Source: P.A. 94-776, eff. 5-19-06.)
 
6     (20 ILCS 1605/14.2)  (from Ch. 120, par. 1164.2)
7     Sec. 14.2. Lottery ticket fraud; prima facie evidence. Any
8 person who, with intent to defraud, shall falsely make, alter,
9 forge, utter, pass or counterfeit a lottery ticket or share
10 issued by the State of Illinois under this Act shall be guilty
11 of a Class 4 felony.
12     It shall be prima facie evidence of intent to defraud for a
13 person to possess a lottery ticket or share issued by the State
14 under this Act if he or she knows that ticket or share was
15 falsely made, altered, forged, uttered, passed, or
16 counterfeited.
17 (Source: P.A. 89-466, eff. 6-13-96.)
 
18     (20 ILCS 1605/14.3)
19     Sec. 14.3. Misuse of proprietary material prohibited.
20 Except as may be provided in Section 7.11, or by bona fide sale
21 or by prior authorization from the Department or the Division,
22 or otherwise by law, all premiums, promotional and other
23 proprietary material produced or acquired by the Division as
24 part of its advertising and promotional activities shall remain

 

 

HB2055 Engrossed - 48 - LRB095 01509 AMC 21511 b

1 the property of the Department. Nothing herein shall be
2 construed to affect the rights or obligations of the Department
3 or any other person under federal or State trademark or
4 copyright laws, nor shall anything herein be construed to
5 prevent the Department or Division from assigning its rights in
6 such property to a Concessionaire pursuant to a Management and
7 Concession Agreement.
8 (Source: P.A. 94-776, eff. 5-19-06.)
 
9     (20 ILCS 1605/15)  (from Ch. 120, par. 1165)
10     Sec. 15. Prohibition against minors under 18 years of age
11 and certain other persons purchasing or being furnished lottery
12 tickets or shares. No minor under 18 years of age shall buy a
13 lottery ticket or share. No person shall sell, distribute
14 samples of, or furnish a lottery ticket or share to any minor
15 under 18 years of age, buy a lottery ticket or share for any
16 minor under 18 years of age, or aid and abet in the purchase of
17 lottery tickets or shares by a minor under 18 years of age.
18     No ticket or share shall be purchased by, and no prize
19 shall be paid to any of the following persons: any member of
20 the Board or any officer or other person employed by the Board
21 or by the Department; any spouse, child, brother, sister or
22 parent residing as a member of the same household in the
23 principal place of abode of any such persons; or any minor
24 under 18 years of age.
25     Any violation of this Section by a person other than the

 

 

HB2055 Engrossed - 49 - LRB095 01509 AMC 21511 b

1 purchasing minor shall be a Class B misdemeanor; provided, that
2 if any violation of this Section is a subsequent violation, the
3 offender shall be guilty of a Class 4 felony. Notwithstanding
4 any provision to the contrary, a violation of this Section by a
5 minor under 18 years of age shall be a petty offense.
6 (Source: P.A. 90-346, eff. 8-8-97.)
 
7     (20 ILCS 1605/16)  (from Ch. 120, par. 1166)
8     Sec. 16. Violations of Act, rules, or regulations;
9 punishment; enforcement. It shall be a Class B misdemeanor to
10 violate this Act or any rule or regulation promulgated
11 thereunder, or knowingly to submit any false information under
12 this Act or rules or regulations adopted thereunder; except
13 that, if any person engages in such offense after one or more
14 prior convictions under this Act, or any law of the United
15 States or of any State relating to gambling or State operated
16 lotteries, he shall be guilty of a Class 4 felony. It shall be
17 the duty of all State and local law enforcement officers to
18 enforce such Act and regulations.
19 (Source: P.A. 78-3rd S.S.-20.)
 
20     (20 ILCS 1605/17)  (from Ch. 120, par. 1167)
21     Sec. 17. Other laws providing penalty or disability for
22 sale of lottery tickets or shares inapplicable. No other law
23 providing any penalty or disability for the sale of lottery
24 tickets or shares or any acts done in connection with the

 

 

HB2055 Engrossed - 50 - LRB095 01509 AMC 21511 b

1 lottery established under this Act shall apply to the sale of
2 tickets or shares performed pursuant to this Act.
3 (Source: P.A. 81-477.)
 
4     (20 ILCS 1605/19)  (from Ch. 120, par. 1169)
5     Sec. 19. Claiming prizes. The Division shall establish an
6 appropriate period for the claiming of prizes for each lottery
7 game offered. Each claim period shall be stated in game rules
8 and written play instructions issued by the Superintendent in
9 accordance with Section 7.1 of this Act or, if the State enters
10 into a Management and Concession Agreement pursuant to which a
11 Concessionaire shall manage or operate the Lottery, such rules
12 and written play instructions as may be issued in accordance
13 with the terms of the Management and Concession Agreement.
14 Written play instructions shall be made available to all
15 players through sales agents licensed to sell game tickets or
16 shares. Prizes for lottery games which involve the purchase of
17 a physical lottery ticket may be claimed only by presentation
18 of a valid winning lottery ticket that matches validation
19 records on file with the Lottery or, if the State enters into a
20 Management and Concession Agreement pursuant to which a
21 Concessionaire manages or operates the Lottery, the records on
22 file with that Concessionaire; no claim may be honored which is
23 based on the assertion that the ticket was lost or stolen. No
24 lottery ticket which has been altered, mutilated, or fails to
25 pass validation tests shall be deemed to be a winning ticket.

 

 

HB2055 Engrossed - 51 - LRB095 01509 AMC 21511 b

1     If no claim is made for the money within the established
2 claim period, then the unclaimed prize money shall be
3 transferred to the General Revenue Fund the prize may be
4 included in the prize pool of such special drawing or drawings
5 as the Division may, from time to time, designate. Unclaimed
6 multi-state game prize money may be included in the multi-state
7 prize pool for such special drawing or drawings as the
8 multi-state game directors may, from time to time, designate.
9 Any bonuses offered by the Department to sales agents who sell
10 winning tickets or shares shall be payable to such agents
11 regardless of whether or not the prize money on the ticket or
12 share is claimed, provided that the agent can be identified as
13 the vendor of the winning ticket or share, and that the winning
14 ticket or share was sold on or after January 1, 1984. All
15 unclaimed prize money not included in the prize pool of a
16 special drawing shall be transferred to the Common School Fund.
17 (Source: P.A. 94-776, eff. 5-19-06.)
 
18     (20 ILCS 1605/20)  (from Ch. 120, par. 1170)
19     Sec. 20. State Lottery Fund.
20     (a) There is created in the State Treasury a special fund
21 to be known as the "State Lottery Fund". Such fund shall
22 consist of all revenues received from (1) the sale of lottery
23 tickets or shares, (net of commissions, fees representing those
24 expenses that are directly proportionate to the sale of tickets
25 or shares at the agent location, and prizes of less than $600

 

 

HB2055 Engrossed - 52 - LRB095 01509 AMC 21511 b

1 which have been validly paid at the agent level), (2)
2 application fees, and (3) all other sources including moneys
3 credited or transferred thereto from any other fund or source
4 pursuant to law and, if the State enters into a Management and
5 Concession Agreement, any moneys accruing to the State pursuant
6 to the terms of that Agreement. Interest earnings of the State
7 Lottery Fund shall be credited to the Common School Fund.
8     (b) The receipt and distribution of moneys under Section
9 21.5 of this Act shall be in accordance with Section 21.5.
10     (c) (b) The receipt and distribution of moneys under
11 Section 21.6 of this Act shall be in accordance with Section
12 21.6.
13 (Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05;
14 revised 8-19-05.)
 
15     (20 ILCS 1605/21)  (from Ch. 120, par. 1171)
16     Sec. 21. Payments or deposits of moneys and income. All
17 lottery sales agents or distributors shall be liable to the
18 Lottery for any and all tickets accepted or generated by any
19 employee or representative of that agent or distributor, and
20 such tickets shall be deemed to have been purchased by the
21 agent or distributor unless returned to the Lottery or if the
22 State enters into a Management and Concession Agreement
23 pursuant to which a Concessionaire engages sales agents or
24 distributors, to such Concessionaire as may be allowed
25 according to the terms of the Management and Concession

 

 

HB2055 Engrossed - 53 - LRB095 01509 AMC 21511 b

1 Agreement within the time and in the manner prescribed by the
2 Superintendent. All moneys received by such agents or
3 distributors from the sale of lottery tickets or shares, less
4 the amount retained as compensation for the sale of the tickets
5 or shares and the amount paid out as prizes, shall be paid over
6 to a lottery representative or deposited in a bank or savings
7 and loan association approved by the State Treasurer, as
8 prescribed by the Superintendent or, if the State enters into a
9 Management and Concession Agreement pursuant to which those
10 moneys are to be held by a trustee, to that trustee and in
11 accordance with such terms as may be set forth in the
12 Management and Concession Agreement.
13     No bank or savings and loan association shall receive any
14 public funds as permitted by this Section, unless it has
15 complied with the requirements established pursuant to Section
16 6 of the Public Funds Investment Act.
17     Each payment or deposit shall be accompanied by a report of
18 the agent's receipts and transactions in the sale of lottery
19 tickets in such form and containing such information as the
20 Superintendent, or if the State enters into a Management and
21 Concession Agreement, as the Concessionaire may require. Any
22 discrepancies in such receipts and transactions may be resolved
23 as provided by the rules and regulations of the Department.
24     If any money due the Lottery by a sales agent or
25 distributor is not paid when due or demanded, it shall
26 immediately become delinquent and be billed on a subsequent

 

 

HB2055 Engrossed - 54 - LRB095 01509 AMC 21511 b

1 monthly statement. If on the closing date for any monthly
2 statement a delinquent amount previously billed of more than
3 $50 remains unpaid, interest in such amount shall be accrued at
4 the rate of 2% per month or fraction thereof from the date when
5 such delinquent amount becomes past due until such delinquent
6 amount, including interest, penalty and other costs and charges
7 that the Department may incur in collecting such amounts, is
8 paid. In case any agent or distributor fails to pay any moneys
9 due the Lottery within 30 days after a second bill or statement
10 is rendered to the agent or distributor, such amount shall be
11 deemed seriously delinquent and may be referred by the
12 Department to a collection agency or credit bureau for
13 collection. Any contract entered into by the Department for the
14 collection of seriously delinquent accounts with a collection
15 agency or credit bureau may be satisfied by a commercially
16 reasonable percentage of the delinquent account recouped,
17 which shall be negotiated by the Department in accordance with
18 commercially accepted standards. Any costs incurred by the
19 Department or others authorized to act in its behalf in
20 collecting such delinquencies may be assessed against the agent
21 or distributor and included as a part of the delinquent
22 account.
23     In case of failure of an agent or distributor to pay a
24 seriously delinquent amount, or any portion thereof, including
25 interest, penalty and costs, the Division may issue a Notice of
26 Assessment. In determining amounts shown on the Notice of

 

 

HB2055 Engrossed - 55 - LRB095 01509 AMC 21511 b

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

 

 

HB2055 Engrossed - 56 - LRB095 01509 AMC 21511 b

1 deficiency plus any costs or charges incurred by the Department
2 in collecting such amount.
3     The Director may make such arrangements for any person(s),
4 financial institution, banks, savings and loan associations or
5 distributors, to perform such functions, activities or
6 services in connection with the operation of the lottery as he
7 deems advisable pursuant to this Act, the State Comptroller
8 Act, or the rules and regulations of the Department, and such
9 functions, activities or services shall constitute lawful
10 functions, activities and services of such person(s), banks,
11 savings and loan associations or distributors.
12     All income arising out of any activity or purpose of the
13 Division shall, pursuant to the State Finance Act, be paid into
14 the State Treasury except as otherwise provided by the rules
15 and regulations of the Department and shall be covered into a
16 special fund to be known as the State Lottery Fund. Banks and
17 savings and loan associations may be compensated for services
18 rendered based upon the activity and amount of funds on
19 deposit.
20 (Source: P.A. 94-776, eff. 5-19-06.)
 
21     (20 ILCS 1605/21.2)  (from Ch. 120, par. 1171.2)
22     Sec. 21.2. (Repealed.) There is created a special fund in
23 the State Treasury known as the Illinois Land Grant Collegiate
24 Athletics Fund. The Department shall designate a special
25 lottery game of its choosing which it shall prepare and offer

 

 

HB2055 Engrossed - 57 - LRB095 01509 AMC 21511 b

1 for sale to the public, the net proceeds from which shall be
2 transferred to such fund for distribution to the University of
3 Illinois Athletic Association as otherwise authorized by law.
4 (Source: P.A. 84-1128.)
 
5     (20 ILCS 1605/21.3)  (from Ch. 120, par. 1171.3)
6     Sec. 21.3. Officer of corporation; personal liability. Any
7 officer of any corporation licensed as an agent for the sale of
8 Lottery tickets and products shall be personally liable for the
9 total amount of Lottery receipts due the Department which are
10 unpaid by the corporation, together with any interest and
11 penalties thereon assessed in accordance with the provision of
12 Section 21 of the Act.
13     The personal liability of a corporate officer as provided
14 herein shall survive the dissolution of the corporation. No
15 action to enforce such personal liability shall be commenced
16 unless a notice of the delinquent account has been sent to such
17 corporate officer at the address shown on the Lottery records
18 or otherwise known to Department officials, and no such action
19 shall be commenced after the expiration of 3 years from the
20 date of the Department's notice of delinquent account or the
21 termination of any court proceedings with respect to the issue
22 of the delinquency of a corporation.
23     Procedures for protest and review of a notice of the
24 Department's intention to enforce personal liability against a
25 corporate officer shall be the same as those prescribed for

 

 

HB2055 Engrossed - 58 - LRB095 01509 AMC 21511 b

1 protest and review of the Notice of Assessment as set forth in
2 Section 7.3 of this Act.
3 (Source: P.A. 88-522.)
 
4     (20 ILCS 1605/21.5)
5     Sec. 21.5. Superintendent Carolyn Adams Ticket For The
6 Cure.
7     (a) The Department shall offer a special instant
8 scratch-off game with the title of "Carolyn Adams Ticket For
9 The Cure". The game shall commence on January 1, 2006 or as
10 soon thereafter, in the discretion of the Director, as is
11 reasonably practical, and shall be discontinued on December 31,
12 2011. The operation of the game shall be governed by this Act
13 and any rules adopted by the Department. The Department must
14 consult with the Ticket For The Cure Board, which is
15 established under Section 2310-347 of the Department of Public
16 Health Powers and Duties Law of the Civil Administrative Code
17 of Illinois, regarding the design and promotion of the game. If
18 any provision of this Section is inconsistent with any other
19 provision of this Act, then this Section governs.
20     (b) The Ticket For The Cure Fund is created as a special
21 fund in the State treasury. The net revenue from the Carolyn
22 Adams Ticket For The Cure special instant scratch-off game
23 shall be deposited into the Fund for appropriation by the
24 General Assembly solely to the Department of Public Health for
25 the purpose of making grants to public or private entities in

 

 

HB2055 Engrossed - 59 - LRB095 01509 AMC 21511 b

1 Illinois for the purpose of funding research concerning breast
2 cancer and for funding services for breast cancer victims. The
3 Department must, before grants are awarded, provide copies of
4 all grant applications to the Ticket For The Cure Board,
5 receive and review the Board's recommendations and comments,
6 and consult with the Board regarding the grants. For purposes
7 of this Section, the term "research" includes, without
8 limitation, expenditures to develop and advance the
9 understanding, techniques, and modalities effective in the
10 detection, prevention, screening, and treatment of breast
11 cancer and may include clinical trials. The grant funds may not
12 be used for institutional, organizational, or community-based
13 overhead costs, indirect costs, or levies.
14     Moneys received for the purposes of this Section,
15 including, without limitation, net revenue from the special
16 instant scratch-off game and gifts, grants, and awards from any
17 public or private entity, must be deposited into the Fund. Any
18 interest earned on moneys in the Fund must be deposited into
19 the Fund.
20     For purposes of this subsection, "net revenue" means the
21 total amount for which tickets have been sold less the sum of
22 the amount paid out in prizes and the actual administrative
23 expenses of the Department solely related to the Carolyn Adams
24 Ticket For The Cure game.
25     (c) During the time that tickets are sold for the Carolyn
26 Adams Ticket For The Cure game, the Department shall not

 

 

HB2055 Engrossed - 60 - LRB095 01509 AMC 21511 b

1 unreasonably diminish the efforts devoted to marketing any
2 other instant scratch-off lottery game.
3     (d) The Department may adopt any rules necessary to
4 implement and administer the provisions of this Section.
5 (Source: P.A. 94-120, eff. 7-6-05.)
 
6     (20 ILCS 1605/21.7 new)
7     Sec. 21.7. Right to direct offer of new games. If the State
8 enters into a Management and Concession Agreement, the State
9 shall retain the right to direct the Concessionaire to offer
10 games as the General Assembly may determine appropriate from
11 time to time. The General Assembly may in its discretion direct
12 the deposit and use of net revenues from any such new games.
13 The operation of any such new games shall be governed by this
14 Act and any rules necessary to implement and administer the
15 provisions of this Section as adopted by the Department.
16     For purposes of this Section, "net revenue" means the total
17 amount for which tickets have been sold less the sum of the
18 amount paid out in the prizes and the costs and expenses of the
19 Department related to the game.
 
20     (20 ILCS 1605/24)  (from Ch. 120, par. 1174)
21     Sec. 24. Preaudit of accounts and transactions by State
22 Comptroller; post-audits by Auditor General. The State
23 Comptroller shall conduct a preaudit of all accounts and
24 transactions of the Department in connection with the operation

 

 

HB2055 Engrossed - 61 - LRB095 01509 AMC 21511 b

1 of the State Lottery under the State Comptroller Act, excluding
2 payments issued by the Department for prizes of $25,000 or
3 less.
4     The Auditor General or a certified public accountant firm
5 appointed by him shall conduct an annual post-audit of all
6 accounts and transactions of the Department in connection with
7 the operation of the State Lottery and other special post
8 audits as the Auditor General, the Legislative Audit
9 Commission, or the General Assembly deems necessary. The annual
10 post-audits shall include payments made by lottery sales agents
11 of prizes of less than $600 authorized under Section 20, and
12 payments made by the Department of prizes up to $25,000
13 authorized under Section 20.1. The Auditor General or his agent
14 conducting an audit under this Act shall have access and
15 authority to examine any and all records of the Department or
16 the Board, its distributing agents and its licensees.
17 (Source: P.A. 94-776, eff. 5-19-06.)
 
18     (20 ILCS 1605/25)  (from Ch. 120, par. 1175)
19     Sec. 25. Review under Administrative Review Law. Any party
20 adversely affected by a final order or determination of the
21 Board or the Department may obtain judicial review, by filing a
22 petition for review within 35 days after the entry of the order
23 or other final action complained of, pursuant to the provisions
24 of the Administrative Review Law, as amended and the rules
25 adopted pursuant thereto.

 

 

HB2055 Engrossed - 62 - LRB095 01509 AMC 21511 b

1 (Source: P.A. 82-783.)
 
2     (20 ILCS 1605/26)  (from Ch. 120, par. 1176)
3     Sec. 26. Severability of invalid provisions or
4 applications. If any clause, sentence, paragraph, subdivision,
5 Section, provision or other portion of this Act or the
6 application thereof to any person or circumstances is held to
7 be invalid, such holding shall not affect, impair or invalidate
8 the remainder of this Act or the application of such portion
9 held invalid to any other person or circumstances, but shall be
10 confined in its operation to the clause, sentence, paragraph,
11 subdivision, provision or other portion thereof directly
12 involved in such holding or to the person and circumstances
13 therein involved.
14 (Source: P.A. 78-3rd S.S.-20.)
 
15     (20 ILCS 1605/27)  (from Ch. 120, par. 1177)
16     Sec. 27. Contracts; investments; proceeds; Deferred
17 Lottery Prize Winners Trust Fund; disbursements; State Lottery
18 Fund; Lottery Concession Fund.
19     (a) The State Treasurer may, with the consent of the
20 Director, contract with any person or corporation, including,
21 without limitation, a bank, banking house, trust company or
22 investment banking firm, to perform such financial functions,
23 activities or services in connection with operation of the
24 lottery as the State Treasurer and the Director may prescribe.

 

 

HB2055 Engrossed - 63 - LRB095 01509 AMC 21511 b

1     (b) All proceeds from investments made pursuant to
2 contracts executed by the State Treasurer, with the consent of
3 the Director, to perform financial functions, activities or
4 services in connection with operation of the lottery, shall be
5 deposited and held by the State Treasurer as ex-officio
6 custodian thereof, separate and apart from all public money or
7 funds of this State in a special trust fund outside the State
8 treasury. Such trust fund shall be known as the "Deferred
9 Lottery Prize Winners Trust Fund", and shall be administered by
10 the Director.
11     The Director shall, at such times and in such amounts as
12 shall be necessary, prepare and send to the State Comptroller
13 vouchers requesting payment from the Deferred Lottery Prize
14 Winners Trust Fund to deferred prize winners, in a manner that
15 will insure the timely payment of such amounts owed.
16     This Act shall constitute an irrevocable appropriation of
17 all amounts necessary for that purpose, and the irrevocable and
18 continuing authority for and direction to the Director and the
19 State Treasurer to make the necessary payments out of such
20 trust fund for that purpose. In the event that the State shall
21 enter into a Management and Concession Agreement, this Section
22 27(b) shall not apply to any prizes awarded after the closing
23 date of the Management and Concession Agreement.
24     (c) Moneys invested pursuant to subsection (a) of this
25 Section may be invested only in bonds, notes, certificates of
26 indebtedness, treasury bills, or other securities constituting

 

 

HB2055 Engrossed - 64 - LRB095 01509 AMC 21511 b

1 direct obligations of the United States of America and all
2 securities or obligations the prompt payment of principal and
3 interest of which is guaranteed by a pledge of the full faith
4 and credit of the United States of America. Interest earnings
5 on moneys in the Deferred Lottery Prize Winners Trust Fund
6 shall remain in such fund and be used to pay the winners of
7 lottery prizes deferred as to payment until such obligations
8 are discharged. Proceeds from bonds purchased and interest
9 accumulated as a result of a grand prize multi-state game
10 ticket that goes unclaimed will be transferred after the
11 termination of the relevant claim period directly from the
12 lottery's Deferred Lottery Prize Winners Trust Fund to each
13 respective multi-state partner state according to its
14 contribution ratio. All moneys invested pursuant to the terms
15 of any Management and Concession Agreement into which the State
16 may enter, shall be subject to the provisions of this
17 subsection.
18     (c-5) If a deferred lottery prize is not claimed within the
19 claim period established by game rule, then the securities or
20 other instruments purchased to fund the prize shall be
21 liquidated and the liquidated amount shall be transferred to
22 the State Lottery Fund for disposition pursuant to Section 19
23 of this Act. In the event that the State shall enter into a
24 Management and Concession Agreement, this Section 27(c-5)
25 shall not apply to any prizes awarded after the closing date of
26 the Management and Concession Agreement.

 

 

HB2055 Engrossed - 65 - LRB095 01509 AMC 21511 b

1     (c-10) The Director may use a portion of the moneys in the
2 Deferred Lottery Prize Winners Trust Fund to purchase bonds to
3 pay a lifetime prize if the prize duration exceeds the length
4 of available securities. If the winner of a lifetime prize
5 exceeds his or her life expectancy as determined using
6 actuarial assumptions and the securities or moneys set aside to
7 pay the prize have been exhausted, moneys in the State Lottery
8 Fund shall be used to make payments to the winner for the
9 duration of the winner's life. In the event that the State
10 shall enter into a Management and Concession Agreement, this
11 Section 27(c-10) shall not apply to any prizes awarded after
12 the closing date of the Management and Concession Agreement.
13     (c-15) From time to time, the Director may request that the
14 State Comptroller transfer any excess moneys in the Deferred
15 Lottery Prize Winners Trust Fund to the Lottery Fund. In the
16 event that the State shall enter into a Management and
17 Concession Agreement, this Section 27(c-15) shall not apply to
18 any prizes awarded after the closing date of the Management and
19 Concession Agreement.
20     (c-20) In the event that the State shall enter into a
21 Management and Concession Agreement pursuant to which a
22 Concessionaire is authorized to manage or operate the Lottery,
23 there shall be created a fund to be known as the Lottery
24 Concession Trust Fund, which shall be a special,
25 non-appropriated trust fund held outside the State treasury and
26 separate and apart from all public money and funds of this

 

 

HB2055 Engrossed - 66 - LRB095 01509 AMC 21511 b

1 State. All proceeds from the sale of lottery tickets or shares
2 and all other revenue from the State's conduct of the Lottery
3 as authorized under this amendatory Act of the 95th General
4 Assembly, including lottery revenues a Concessionaire may be
5 eligible to receive under a Management and Concession
6 Agreement, shall be paid into the Fund.
7     The Fund shall begin to receive lottery proceeds and
8 revenues on the date that a Management and Concession Agreement
9 first becomes effective, and moneys in the Fund shall not at
10 any time during the term of such an agreement be appropriated
11 or diverted to any other use or purpose. The Fund shall be held
12 by an Illinois trustee designated pursuant to the Concession
13 and Management Agreement. All interest or other earnings
14 accruing or received on amounts in the Fund shall be credited
15 to and retained by the Fund. The Fund shall be held,
16 administered, invested and disbursed in accordance with the
17 trust agreement and the Management and Concession Agreement.
18     (d) This amendatory Act of 1985 shall be construed
19 liberally to effect the purposes of the Illinois Lottery Law.
20 (Source: P.A. 89-466, eff. 6-13-96; 90-346, eff. 8-8-97.)
 
21     Section 10. The Illinois Procurement Code is amended by
22 changing Section 50-70 as follows:
 
23     (30 ILCS 500/50-70)
24     Sec. 50-70. Additional provisions. This Code is subject to

 

 

HB2055 Engrossed - 67 - LRB095 01509 AMC 21511 b

1 applicable provisions of the following Acts:
2         (1) Article 33E of the Criminal Code of 1961;
3         (2) the Illinois Human Rights Act;
4         (3) the Discriminatory Club Act;
5         (4) the Illinois Governmental Ethics Act;
6         (5) the State Prompt Payment Act;
7         (6) the Public Officer Prohibited Activities Act; and
8         (7) the Drug Free Workplace Act; and .
9         (8) the Illinois Lottery Law.
10 (Source: P.A. 90-572, eff. 2-6-98.)
 
11     Section 99. Effective date. This Act takes effect upon
12 becoming law.