Sen. John J. Cullerton

Filed: 10/29/2009

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 607

2     AMENDMENT NO. ______. Amend House Bill 607 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois Lottery Law is amended by changing
5 Sections 3, 7.12, 7.15, and 9.1 as follows:
 
6     (20 ILCS 1605/3)  (from Ch. 120, par. 1153)
7     Sec. 3. For the purposes of this Act:
8     a. "Lottery" or "State Lottery" means the lottery or
9 lotteries established and operated pursuant to this Act.
10     b. "Board" means the Lottery Control Board created by this
11 Act.
12     c. "Department" means the Department of Revenue.
13     d. "Director" means the Director of Revenue.
14     e. "Chairman" means the Chairman of the Lottery Control
15 Board.
16     f. "Multi-state game directors" means such persons,

 

 

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1 including the Superintendent, as may be designated by an
2 agreement between the Division and one or more additional
3 lotteries operated under the laws of another state or states.
4     g. "Division" means the Division of the State Lottery of
5 the Department of Revenue.
6     h. "Superintendent" means the Superintendent of the
7 Division of the State Lottery of the Department of Revenue.
8     i. "Management agreement" means an agreement or contract
9 between the Department on behalf of the State with a private
10 manager, as an independent contractor, whereby the private
11 manager provides management services to the Lottery in exchange
12 for compensation that may consist of, among other things, a fee
13 for services and a performance-based bonus of the receipt of no
14 more than 5% of Lottery profits so long as the Department
15 continues to exercise actual control over all significant
16 business decisions made by the private manager as set forth in
17 Section 9.1.
18     j. "Person" means any individual, firm, association, joint
19 venture, partnership, estate, trust, syndicate, fiduciary,
20 corporation, or other legal entity, group, or combination.
21     k. "Private manager" means a person that provides
22 management services to the Lottery on behalf of the Department
23 under a management agreement.
24     l. "Profits" means total revenues accruing from the sale of
25 lottery tickets or shares and related proceeds minus (1) the
26 payment of prizes and retailer bonuses and (2) the payment of

 

 

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1 costs incurred in the operation and administration of the
2 lottery, excluding costs of services directly rendered by a
3 private manager.
4 (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
5     (20 ILCS 1605/7.12)
6     Sec. 7.12. Internet pilot program. The General Assembly
7 finds that:
8         (1) the consumer market in Illinois has changed since
9     the creation of the Illinois State Lottery in 1974;
10         (2) the Internet has become an integral part of
11     everyday life for a significant number of Illinois
12     residents not only in regards to their professional life,
13     but also in regards to personal business and communication;
14     and
15         (3) the current practices of selling lottery tickets
16     does not appeal to the new form of market participants who
17     prefer to make purchases on the internet at their own
18     convenience.
19     It is the intent of the General Assembly to create an
20 Internet pilot program for the sale of lottery tickets to
21 capture this new form of market participant.
22     The Department shall create a pilot program that allows an
23 individual 18 years of age or older to purchase lottery tickets
24 or shares on the Internet without using a Lottery retailer with
25 on-line status, as those terms are defined by rule. The

 

 

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1 Department shall restrict the sale of lottery tickets on the
2 Internet to transactions initiated and received or otherwise
3 made exclusively within the State of Illinois. The Department
4 shall adopt rules necessary for the administration of this
5 program. These rules shall include requirements for marketing
6 of the Lottery to infrequent players. The provisions of this
7 Act and the rules adopted under this Act shall apply to the
8 sale of lottery tickets or shares under this program.
9     Before beginning the pilot program, the Department of
10 Revenue must submit a request to the United States Department
11 of Justice for review of the State's plan to implement a pilot
12 program for the sale of lottery tickets on the Internet and its
13 propriety under federal law. The Department shall implement the
14 Internet pilot program only if the Department of Justice does
15 not object to the implementation of the program within a
16 reasonable period of time after its review. seek a clarifying
17 memorandum from the federal Department of Justice that it is
18 legal for Illinois residents and non-Illinois residents to
19 purchase and the private company to sell lottery tickets on the
20 Internet on behalf of the State of Illinois under the federal
21 Unlawful Internet Gambling Enforcement Act of 2006.
22     The Department shall limit the individuals authorized to
23 purchase lottery tickets on the Internet to individuals who are
24 18 years of age or older and Illinois residents, unless the
25 clarifying memorandum from the federal Department of Justice
26 indicates that it is legal for non-Illinois residents to

 

 

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1 purchase lottery tickets on the Internet, and shall set a
2 limitation on the monthly purchases that may be made through
3 any one individual's lottery account. The Department is
4 obligated to implement the pilot program set forth in this
5 Section and Sections 7.15 and , 7.16, and 7.17 only at such
6 time, and to such extent, that the Department of Justice does
7 not object to the implementation of the program within a
8 reasonable period of time after its review. While the Illinois
9 Lottery may only offer Lotto and Mega Millions games through
10 the pilot program, the Department shall request review from the
11 federal Department of Justice for the Illinois Lottery to sell
12 lottery tickets on the Internet on behalf of the State of
13 Illinois that are not limited to just these games issues a
14 clarifying memorandum finding such program to be permitted
15 under federal law. Only Lotto and Mega Million games offered by
16 the Illinois Lottery may be offered through the pilot program.
17     The Department shall authorize the private manager to
18 implement and administer the program pursuant to the management
19 agreement entered into under Section 9.1 and in a manner
20 consistent with the provisions of this Section. If a private
21 manager has not been selected pursuant to Section 9.1 at the
22 time the Department is obligated to implement the pilot
23 program, then the Department shall not proceed with the pilot
24 program until after the selection of the private manager, at
25 which time the Department shall authorize the private manager
26 to implement and administer the program pursuant to the

 

 

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1 management agreement entered into under Section 9.1 and in a
2 manner consistent with the provisions of this Section. The
3 pilot program must be conducted pursuant to a contract with a
4 private vendor that has the expertise, technical capability,
5 and knowledge of the Illinois lottery marketplace to conduct
6 the program. The Department of the Lottery must seek
7 cooperation from existing vendors for the program.
8     The pilot program shall last for not less than 36 months,
9 but not more than 48 months from the date of its initial
10 operation.
11     Nothing in this Section shall be construed as prohibiting
12 the Department from implementing and operating a website portal
13 whereby individuals who are 18 years of age or older with an
14 Illinois mailing address may apply to purchase lottery tickets
15 via subscription.
16 (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
17     (20 ILCS 1605/7.15)
18     Sec. 7.15. Verification of age and residency for Internet
19 program; security for Internet lottery accounts. The
20 Department must establish a procedure to verify that an
21 individual is 18 years of age or older and that the sale of
22 lottery tickets on the Internet is limited to transactions that
23 are initiated and received or otherwise made exclusively within
24 the State of Illinois, unless the federal Department of Justice
25 indicates that it is legal for the transactions to originate in

 

 

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1 states other than Illinois. An individual must satisfy the
2 verification procedure before he or she an Illinois resident
3 before he or she may establish one Internet lottery account and
4 purchase lottery tickets or shares through the Internet pilot
5 program. Non-residents of Illinois shall only be allowed to
6 participate in the pilot program if the federal Department of
7 Justice indicates that it is legal for non-residents to do so.
8 By rule, the Department shall establish funding procedures for
9 Internet lottery accounts and shall provide a mechanism for
10 each Internet lottery account to have a personal identification
11 number to prevent the unauthorized use of Internet lottery
12 accounts. If any participant in the pilot program violates any
13 provisions of this amendatory Act of the 96th General Assembly
14 or rule established by the Department, the participant's all
15 such winnings shall be forfeited. Such forfeited winnings shall
16 be deposited in the Common School Fund.
17 (Source: P.A. 96-34, eff. 7-13-09.)
 
18     (20 ILCS 1605/9.1)
19     Sec. 9.1. Private manager and management agreement.
20     (a) As used in this Section:
21     "Offeror" means a person or group of persons that responds
22 to a request for qualifications under this Section.
23     "Request for qualifications" means all materials and
24 documents prepared by the Department to solicit the following
25 from offerors:

 

 

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1         (1) Statements of qualifications.
2         (2) Proposals to enter into a management agreement,
3     including the identity of any prospective vendor or vendors
4     that the offeror intends to initially engage to assist the
5     offeror in performing its obligations under the management
6     agreement.
7     "Final offer" means the last proposal submitted by an
8 offeror in response to the request for qualifications,
9 including the identity of any prospective vendor or vendors
10 that the offeror intends to initially engage to assist the
11 offeror in performing its obligations under the management
12 agreement.
13     "Final offeror" means the offeror ultimately selected by
14 the Governor to be the private manager for the Lottery under
15 subsection (h) of this Section.
16     (b) By September 15, 2010 March 1, 2010, the Governor
17 Department shall select enter into a management agreement with
18 a private manager for the total management of the Lottery with
19 integrated functions, such as lottery game design, supply of
20 goods and services, and advertising and as specified in this
21 Section.
22     (c) Pursuant to the terms of this subsection, the
23 Department shall endeavor to expeditiously terminate the
24 existing contracts in support of the Lottery in effect on the
25 effective date of this amendatory Act of the 96th General
26 Assembly in connection with the selection of the private

 

 

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1 manager. As part of its obligation to terminate these contracts
2 and select the private manager, the Department shall establish
3 a mutually agreeable timetable to transfer the functions of
4 existing contractors to the private manager so that existing
5 Lottery operations are not materially diminished or impaired
6 during the transition. To that end, the Department shall do the
7 following:
8         (1) where such contracts contain a provision
9     authorizing termination upon notice, the Department shall
10     provide notice of termination to occur upon the mutually
11     agreed timetable for transfer of functions;
12         (2) upon the expiration of any initial term or renewal
13     term of the current Lottery contracts, the Department shall
14     not renew such contract for a term extending beyond the
15     mutually agreed timetable for transfer of functions; or
16         (3) in the event any current contract provides for
17     termination of that contract upon the implementation of a
18     contract with the private manager, the Department shall
19     perform all necessary actions to terminate the contract on
20     the date that coincides with the mutually agreed timetable
21     for transfer of functions.
22     If the contracts to support the current operation of the
23 Lottery in effect on the effective date of this amendatory Act
24 of the 96th General Assembly are not subject to termination as
25 provided for in this subsection (c), then the Department may
26 include a provision in the contract with the private manager

 

 

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1 specifying a mutually agreeable methodology for incorporation.
2     (c-5) The Department shall include provisions in the
3 management agreement whereby the private manager shall, for a
4 fee, and pursuant to a contract negotiated with the Department
5 (the "Employee Use Contract"), utilize the services of current
6 Department employees to assist in the administration and
7 operation of the Lottery. The Department shall be the employer
8 of all such bargaining unit employees assigned to perform such
9 work for the private manager, and such employees shall be State
10 employees, as defined by the Personnel Code. Department
11 employees shall operate under the same employment policies,
12 rules, regulations, and procedures, as other employees of the
13 Department. In addition, neither historical representation
14 rights under the Illinois Public Labor Relations Act, nor
15 existing collective bargaining agreements, shall be disturbed
16 by the management agreement with the private manager for the
17 management of the Lottery.
18     (d) The management agreement with the private manager shall
19 include all of the following:
20         (1) A term not to exceed 10 years, including any
21     renewals.
22         (2) A provision specifying that the Department:
23             (A) shall exercise actual control over all
24         significant business decisions;
25             (A-5) has the authority to direct or countermand
26         operating decisions by the private manager at any time;

 

 

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1             (B) has ready access at any time to information
2         regarding Lottery operations;
3             (C) has the right to demand and receive information
4         from the private manager concerning any aspect of the
5         Lottery operations at any time; and
6             (D) retains ownership of all trade names,
7         trademarks, and intellectual property associated with
8         the Lottery.
9         (3) A provision imposing an affirmative duty on the
10     private manager to provide the Department with material
11     information and with any information the private manager
12     reasonably believes the Department would want to know to
13     enable the Department to conduct the Lottery.
14         (4) A provision requiring the private manager to
15     provide the Department with advance notice of any operating
16     decision that bears significantly on the public interest,
17     including, but not limited to, decisions on the kinds of
18     games to be offered to the public and decisions affecting
19     the relative risk and reward of the games being offered, so
20     the Department has a reasonable opportunity to evaluate and
21     countermand that decision.
22         (5) A provision providing for compensation of the
23     private manager that may consist of, among other things, a
24     fee for services and a performance based bonus as with a
25     percentage, not to exceed 5%, of Lottery profits in
26     consideration for managing the Lottery, including terms

 

 

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1     that may provide the private manager with an increase in
2     compensation if Lottery revenues grow by a specified
3     percentage in a given year.
4         (6) (Blank).
5         (7) A provision requiring the deposit of all Lottery
6     proceeds to be deposited into the State Lottery Fund.
7         (8) A provision requiring the private manager to locate
8     its principal office within the State.
9         (8-5) A provision encouraging that at least 20% of the
10     cost of contracts entered into for goods and services by
11     the private manager in connection with its management of
12     the Lottery, other than contracts with sales agents or
13     technical advisors, be awarded to businesses that are a
14     minority owned business, a female owned business, or a
15     business owned by a person with disability, as those terms
16     are defined in the Business Enterprise for Minorities,
17     Females, and Persons with Disabilities Act.
18         (9) A requirement that so long as the private manager
19     complies with all the conditions of the agreement under the
20     oversight of the Department, the private manager shall have
21     the following duties and obligations with respect to the
22     management of the Lottery:
23             (A) The right to use equipment and other assets
24         used in the operation of the Lottery.
25             (B) The rights and obligations under contracts
26         with retailers and vendors.

 

 

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1             (C) The implementation of a comprehensive security
2         program by the private manager.
3             (D) The implementation of a comprehensive system
4         of internal audits.
5             (E) The implementation of a program by the private
6         manager to curb compulsive gambling by persons playing
7         the Lottery.
8             (F) A system for determining (i) the type of
9         Lottery games, (ii) the method of selecting winning
10         tickets, (iii) the manner of payment of prizes to
11         holders of winning tickets, (iv) the frequency of
12         drawings of winning tickets, (v) the method to be used
13         in selling tickets, (vi) a system for verifying the
14         validity of tickets claimed to be winning tickets,
15         (vii) the basis upon which retailer commissions are
16         established by the manager, and (viii) minimum
17         payouts.
18         (10) A requirement that advertising and promotion must
19     be consistent with Section 7.8a of this Act.
20         (11) A requirement that the private manager market the
21     Lottery to those residents who are new, infrequent, or
22     lapsed players of the Lottery, especially those who are
23     most likely to make regular purchases on the Internet as
24     permitted by law.
25         (12) A code of ethics for the private manager's
26     officers and employees.

 

 

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1         (13) A requirement that the Department monitor and
2     oversee the private manager's practices and take action
3     that the Department considers appropriate to ensure that
4     the private manager is in compliance with the terms of the
5     management agreement, while allowing the manager, unless
6     specifically prohibited by law or the management
7     agreement, to negotiate and sign its own contracts with
8     vendors.
9         (14) A provision requiring the private manager to
10     periodically file, at least on an annual basis, appropriate
11     financial statements in a form and manner acceptable to the
12     Department.
13         (15) Cash reserves requirements.
14         (16) Procedural requirements for obtaining the prior
15     approval of the Department when a management agreement or
16     an interest in a management agreement is sold, assigned,
17     transferred, or pledged as collateral to secure financing.
18         (17) Grounds for the termination of the management
19     agreement by the Department or the private manager.
20         (18) Procedures for amendment of the agreement.
21         (19) A provision requiring the private manager to
22     engage in an open and competitive bidding process for any
23     procurement having a cost in excess of $50,000 that is not
24     a part of the private manager's final offer. The process
25     shall favor the selection of a vendor deemed to have
26     submitted a proposal that provides the Lottery with the

 

 

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1     best overall value. The process shall not be subject to the
2     provisions of the Illinois Procurement Code, unless
3     specifically required by the management agreement.
4     (Blank).
5         (20) The transition of rights and obligations,
6     including any associated equipment or other assets used in
7     the operation of the Lottery, from the manager to any
8     successor manager of the lottery, including the
9     Department, following the termination of or foreclosure
10     upon the management agreement.
11         (21) Right of use of copyrights, trademarks, and
12     service marks held by the Department in the name of the
13     State. The agreement must provide that any use of them by
14     the manager shall only be for the purpose of fulfilling its
15     obligations under the management agreement during the term
16     of the agreement.
17     (e) Notwithstanding any other law to the contrary, the
18 Department shall select a private manager through a competitive
19 request for qualifications process consistent with Section
20 20-35 of the Illinois Procurement Code, which shall take into
21 account:
22         (1) the offeror's ability to market the Lottery to
23     those residents who are new, infrequent, or lapsed players
24     of the Lottery, especially those who are most likely to
25     make regular purchases on the Internet;
26         (2) the offeror's ability to address the State's

 

 

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1     concern with the social effects of gambling on those who
2     can least afford to do so;
3         (3) the offeror's ability to provide the most
4     successful management of the Lottery for the benefit of the
5     people of the State based on current and past business
6     practices or plans of the offeror; and
7         (4) the offeror's poor or inadequate past performance
8     in servicing, equipping, operating or managing a lottery on
9     behalf of Illinois, another State or foreign government and
10     attracting persons who are not currently regular players of
11     a lottery.
12     (f) The Department may retain the services of an advisor or
13 advisors with significant experience in financial services or
14 the management, operation, and procurement of goods, services,
15 and equipment for a government-run lottery to assist in the
16 preparation of the terms of the request for qualifications and
17 selection of the private manager. Any prospective advisor
18 seeking to provide services under this subsection (f) shall
19 disclose any material business or financial relationship
20 during the past 3 years with any potential offeror, or with a
21 contractor or subcontractor presently providing goods,
22 services, or equipment to the Department to support the
23 Lottery. The Department shall evaluate the material business or
24 financial relationship of each prospective advisor. The
25 Department shall not select any prospective advisor with a
26 substantial business or financial relationship that the

 

 

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1 Department deems to impair the objectivity of the services to
2 be provided by the prospective advisor. During the course of
3 the advisor's engagement by the Department, and for a period of
4 one year thereafter, the advisor shall not enter into any
5 business or financial relationship with any offeror or any
6 vendor identified to assist an offeror in performing its
7 obligations under the management agreement. Any advisor
8 retained by the Department shall be disqualified from being an
9 offeror. No advisor or advisors retained may have any prior or
10 present affiliation with any potential offeror, or with a
11 contractor or subcontractor presently providing goods,
12 services or equipment to the Department to support the Lottery.
13 The Department shall not include terms in the request for
14 qualifications that provide a material provides an advantage
15 whether directly or indirectly to any potential offeror, or any
16 contractor or subcontractor presently providing goods,
17 services, or equipment to the Department to support the
18 Lottery, including terms contained in previous a contractor or
19 subcontractor's responses to requests for proposals or
20 qualifications submitted to Illinois, another State or foreign
21 government when those terms are uniquely associated with a
22 particular potential offeror, contractor, or subcontractor.
23 The request for proposals offered by the Department on December
24 22, 2008 as "LOT08GAMESYS" and reference number "22016176" is
25 declared void.
26     (g) The Department shall select at least 2 offerors as

 

 

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1 finalists to potentially serve as the private manager no later
2 than August 9, 2010 February 1, 2010. Upon making preliminary
3 selections, the Department shall schedule a public hearing on
4 the finalists' proposals and provide public notice of the
5 hearing at least 7 calendar days before the hearing. The notice
6 must include all of the following:
7         (1) The date, time, and place of the hearing.
8         (2) The subject matter of the hearing.
9         (3) A brief description of the management agreement to
10     be awarded.
11         (4) The identity of the offerors that have been
12     selected as finalists to serve as the private manager.
13         (5) The address and telephone number of the Department.
14     (h) At the public hearing, the Department shall (i) provide
15 sufficient time for each finalist to present and explain its
16 proposal to the Department and the Governor or the Governor's
17 designee, including an opportunity to respond to questions
18 posed by the Department, Governor, or designee and (ii) allow
19 the public and non-selected offerors to comment on the
20 presentations. The Governor or a designee shall attend the
21 public hearing. After the public hearing, the Department shall
22 have 14 calendar days to recommend to the Governor whether a
23 management agreement should be entered into with a particular
24 finalist. After reviewing the Department's recommendation, the
25 Governor may accept or reject the Department's recommendation,
26 and shall select a final offeror as the private manager by

 

 

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1 publication of a notice in the Illinois Procurement Bulletin on
2 or before September 15, 2010. The Governor shall include in the
3 notice a detailed explanation and the reasons why the final
4 offeror is superior to other offerors and will provide
5 management services in a manner that best achieves the
6 objectives of this Section. The Governor shall designate a
7 final offeror as the private manager with sufficient time for
8 the Department to enter into a management agreement on or
9 before March 1, 2010. The Governor shall also sign the
10 management agreement with the private manager.
11     (i) Any action to contest the private manager selected by
12 the Governor validity of a management agreement entered into
13 under this Section must be brought within 7 14 calendar days
14 after the publication of the notice of the designation of the
15 private manager as provided in subsection (h) of this Section.
16     (j) The Lottery shall remain, for so long as a private
17 manager manages the Lottery in accordance with provisions of
18 this Act, a Lottery conducted by the State, and the State shall
19 not be authorized to sell or transfer the Lottery to a third
20 party.
21     (k) Any tangible personal property used exclusively in
22 connection with the lottery that is owned by the Department and
23 leased to the private manager shall be owned by the Department
24 in the name of the State and shall be considered to be public
25 property devoted to an essential public and governmental
26 function.

 

 

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1     (l) The Department may exercise any of its powers under
2 this Section or any other law as necessary or desirable for the
3 execution of the Department's powers under this Section.
4     (m) Neither this Section nor any management agreement
5 entered into under this Section prohibits the General Assembly
6 from authorizing forms of gambling that are not in direct
7 competition with the Lottery.
8     (n) The private manager shall be subject to a complete
9 investigation in the third, seventh, and tenth years of the
10 agreement (if the agreement is for a 10-year term) by the
11 Department in cooperation with the Auditor General to determine
12 whether the private manager has complied with this Section and
13 the management agreement. The private manager shall bear the
14 cost of an investigation or reinvestigation of the private
15 manager under this subsection.
16     (o) The powers conferred by this Section are in addition
17 and supplemental to the powers conferred by any other law. If
18 any other law or rule is inconsistent with this Section,
19 including, but not limited to, provisions of the Illinois
20 Procurement Code, then this Section controls as to any
21 management agreement entered into under this Section. This
22 Section and any rules adopted under this Section contain full
23 and complete authority for a management agreement between the
24 Department and a private manager. No law, procedure,
25 proceeding, publication, notice, consent, approval, order, or
26 act by the Department or any other officer, Department, agency,

 

 

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1 or instrumentality of the State or any political subdivision is
2 required for the Department to enter into a management
3 agreement under this Section. This Section contains full and
4 complete authority for the Department to approve any contracts
5 subcontracts entered into by a private manager with a vendor
6 providing goods, services, or both goods and services to the
7 private manager under the terms of the a management agreement.
8     Except as provided in Sections 21.2, 21.5, 21.6, 21.7, and
9 21.8, the Department shall distribute all proceeds of lottery
10 tickets and shares sold in the following priority and manner:
11         (1) The payment of prizes and retailer bonuses.
12         (2) The payment of costs incurred in the operation and
13     administration of the Lottery, including the payment of
14     sums due to the private manager under the management
15     agreement with the Department and payment of sums due to
16     the private vendor for lottery tickets and shares sold on
17     the Internet via the pilot program as compensation under
18     its contract with the Department.
19         (3) On the last day of each month or as soon thereafter
20     as possible, the State Comptroller shall direct and the
21     State Treasurer shall transfer from the Lottery Fund to the
22     Common School Fund an amount that is equal to the proceeds
23     transferred in the corresponding month of fiscal year 2009,
24     as adjusted for inflation, to the Common School Fund.
25         (4) On or before the last day of each fiscal year,
26     deposit any remaining proceeds, subject to payments under

 

 

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1     items (1), (2), and (3) into the Capital Projects Fund each
2     fiscal year.
3 (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.)
 
4     Section 10. The Illinois Procurement Code is amended by
5 changing Section 1-10 as follows:
 
6     (30 ILCS 500/1-10)
7     Sec. 1-10. Application.
8     (a) This Code applies only to procurements for which
9 contractors were first solicited on or after July 1, 1998. This
10 Code shall not be construed to affect or impair any contract,
11 or any provision of a contract, entered into based on a
12 solicitation prior to the implementation date of this Code as
13 described in Article 99, including but not limited to any
14 covenant entered into with respect to any revenue bonds or
15 similar instruments. All procurements for which contracts are
16 solicited between the effective date of Articles 50 and 99 and
17 July 1, 1998 shall be substantially in accordance with this
18 Code and its intent.
19     (b) This Code shall apply regardless of the source of the
20 funds with which the contracts are paid, including federal
21 assistance moneys. This Code shall not apply to:
22         (1) Contracts between the State and its political
23     subdivisions or other governments, or between State
24     governmental bodies except as specifically provided in

 

 

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

 

 

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1     University by a person, acting as an independent
2     contractor, who is qualified by education, experience, and
3     technical ability and is selected by negotiation for the
4     purpose of providing non-credit educational service
5     activities or products by means of specialized programs
6     offered by the university.
7         (9) Procurement expenditures by the Illinois
8     Conservation Foundation when only private funds are used.
9     (c) This Code does not apply to the electric power
10 procurement process provided for under Section 1-75 of the
11 Illinois Power Agency Act and Section 16-111.5 of the Public
12 Utilities Act.
13     (d) Except for Section 20-160 and Article 50 of this Code,
14 and as expressly required by Section 9.1 of the Illinois
15 Lottery Law, the provisions of this Code do not apply to the
16 procurement process provided for under Section 9.1 of the
17 Illinois Lottery Law.
18 (Source: P.A. 95-481, eff. 8-28-07; 95-615, eff. 9-11-07;
19 95-876, eff. 8-21-08.)
 
20     (20 ILCS 1605/7.17 rep.)
21     Section 15. The Illinois Lottery Law is amended by
22 repealing Section 7.17.
 
23     Section 99. Effective date. This Act takes effect upon
24 becoming law.".