Illinois General Assembly - Full Text of SB2438
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of SB2438  102nd General Assembly

SB2438eng 102ND GENERAL ASSEMBLY

  
  
  

 


 
SB2438 EngrossedLRB102 17343 SMS 22834 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Lottery Law is amended by changing
5Sections 2, 9.1, and 20 and by adding Section 21.4 as follows:
 
6    (20 ILCS 1605/2)  (from Ch. 120, par. 1152)
7    Sec. 2. This Act is enacted to implement and establish
8within the State a lottery to be conducted by the State through
9the Department. The entire net proceeds of the Lottery are to
10be used for the support of the State's Common School Fund,
11except as provided in subsection (o) of Section 9.1 and
12Sections 21.5, 21.6, 21.7, 21.8, 21.9, 21.10, and 21.11,
1321.12, and 21.13, and 21.14. The General Assembly finds that
14it is in the public interest for the Department to conduct the
15functions of the Lottery with the assistance of a private
16manager under a management agreement overseen by the
17Department. The Department shall be accountable to the General
18Assembly and the people of the State through a comprehensive
19system of regulation, audits, reports, and enduring
20operational oversight. The Department's ongoing conduct of the
21Lottery through a management agreement with a private manager
22shall act to promote and ensure the integrity, security,
23honesty, and fairness of the Lottery's operation and

 

 

SB2438 Engrossed- 2 -LRB102 17343 SMS 22834 b

1administration. It is the intent of the General Assembly that
2the Department shall conduct the Lottery with the assistance
3of a private manager under a management agreement at all times
4in a manner consistent with 18 U.S.C. 1307(a)(1), 1307(b)(1),
51953(b)(4).
6    Beginning with Fiscal Year 2018 and every year thereafter,
7any moneys transferred from the State Lottery Fund to the
8Common School Fund shall be supplemental to, and not in lieu
9of, any other money due to be transferred to the Common School
10Fund by law or appropriation.
11(Source: P.A. 100-466, eff. 6-1-18; 100-647, eff. 7-30-18;
12100-1068, eff. 8-24-18; 101-81, eff. 7-12-19; 101-561, eff.
138-23-19; revised 10-21-19.)
 
14    (20 ILCS 1605/9.1)
15    Sec. 9.1. Private manager and management agreement.
16    (a) As used in this Section:
17    "Offeror" means a person or group of persons that responds
18to a request for qualifications under this Section.
19    "Request for qualifications" means all materials and
20documents prepared by the Department to solicit the following
21from offerors:
22        (1) Statements of qualifications.
23        (2) Proposals to enter into a management agreement,
24    including the identity of any prospective vendor or
25    vendors that the offeror intends to initially engage to

 

 

SB2438 Engrossed- 3 -LRB102 17343 SMS 22834 b

1    assist the offeror in performing its obligations under the
2    management agreement.
3    "Final offer" means the last proposal submitted by an
4offeror in response to the request for qualifications,
5including the identity of any prospective vendor or vendors
6that the offeror intends to initially engage to assist the
7offeror in performing its obligations under the management
8agreement.
9    "Final offeror" means the offeror ultimately selected by
10the Governor to be the private manager for the Lottery under
11subsection (h) of this Section.
12    (b) By September 15, 2010, the Governor shall select a
13private manager for the total management of the Lottery with
14integrated functions, such as lottery game design, supply of
15goods and services, and advertising and as specified in this
16Section.
17    (c) Pursuant to the terms of this subsection, the
18Department shall endeavor to expeditiously terminate the
19existing contracts in support of the Lottery in effect on July
2013, 2009 (the effective date of Public Act 96-37) this
21amendatory Act of the 96th General Assembly in connection with
22the selection of the private manager. As part of its
23obligation to terminate these contracts and select the private
24manager, the Department shall establish a mutually agreeable
25timetable to transfer the functions of existing contractors to
26the private manager so that existing Lottery operations are

 

 

SB2438 Engrossed- 4 -LRB102 17343 SMS 22834 b

1not materially diminished or impaired during the transition.
2To that end, the Department shall do the following:
3        (1) where such contracts contain a provision
4    authorizing termination upon notice, the Department shall
5    provide notice of termination to occur upon the mutually
6    agreed timetable for transfer of functions;
7        (2) upon the expiration of any initial term or renewal
8    term of the current Lottery contracts, the Department
9    shall not renew such contract for a term extending beyond
10    the mutually agreed timetable for transfer of functions;
11    or
12        (3) in the event any current contract provides for
13    termination of that contract upon the implementation of a
14    contract with the private manager, the Department shall
15    perform all necessary actions to terminate the contract on
16    the date that coincides with the mutually agreed timetable
17    for transfer of functions.
18    If the contracts to support the current operation of the
19Lottery in effect on July 13, 2009 (the effective date of
20Public Act 96-34) this amendatory Act of the 96th General
21Assembly are not subject to termination as provided for in
22this subsection (c), then the Department may include a
23provision in the contract with the private manager specifying
24a mutually agreeable methodology for incorporation.
25    (c-5) The Department shall include provisions in the
26management agreement whereby the private manager shall, for a

 

 

SB2438 Engrossed- 5 -LRB102 17343 SMS 22834 b

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

 

 

SB2438 Engrossed- 6 -LRB102 17343 SMS 22834 b

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

 

 

SB2438 Engrossed- 7 -LRB102 17343 SMS 22834 b

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

 

 

SB2438 Engrossed- 8 -LRB102 17343 SMS 22834 b

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

 

 

SB2438 Engrossed- 9 -LRB102 17343 SMS 22834 b

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

 

 

SB2438 Engrossed- 10 -LRB102 17343 SMS 22834 b

1    specifically required by the management agreement.
2        (20) The transition of rights and obligations,
3    including any associated equipment or other assets used in
4    the operation of the Lottery, from the manager to any
5    successor manager of the lottery, including the
6    Department, following the termination of or foreclosure
7    upon the management agreement.
8        (21) Right of use of copyrights, trademarks, and
9    service marks held by the Department in the name of the
10    State. The agreement must provide that any use of them by
11    the manager shall only be for the purpose of fulfilling
12    its obligations under the management agreement during the
13    term of the agreement.
14        (22) The disclosure of any information requested by
15    the Department to enable it to comply with the reporting
16    requirements and information requests provided for under
17    subsection (p) of this Section.
18    (e) Notwithstanding any other law to the contrary, the
19Department shall select a private manager through a
20competitive request for qualifications process consistent with
21Section 20-35 of the Illinois Procurement Code, which shall
22take into account:
23        (1) the offeror's ability to market the Lottery to
24    those residents who are new, infrequent, or lapsed players
25    of the Lottery, especially those who are most likely to
26    make regular purchases on the Internet;

 

 

SB2438 Engrossed- 11 -LRB102 17343 SMS 22834 b

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

 

 

SB2438 Engrossed- 12 -LRB102 17343 SMS 22834 b

1prospective advisor with a substantial business or financial
2relationship that the Department deems to impair the
3objectivity of the services to be provided by the prospective
4advisor. During the course of the advisor's engagement by the
5Department, and for a period of one year thereafter, the
6advisor shall not enter into any business or financial
7relationship with any offeror or any vendor identified to
8assist an offeror in performing its obligations under the
9management agreement. Any advisor retained by the Department
10shall be disqualified from being an offeror. The Department
11shall not include terms in the request for qualifications that
12provide a material advantage whether directly or indirectly to
13any potential offeror, or any contractor or subcontractor
14presently providing goods, services, or equipment to the
15Department to support the Lottery, including terms contained
16in previous responses to requests for proposals or
17qualifications submitted to Illinois, another State or foreign
18government when those terms are uniquely associated with a
19particular potential offeror, contractor, or subcontractor.
20The request for proposals offered by the Department on
21December 22, 2008 as "LOT08GAMESYS" and reference number
22"22016176" is declared void.
23    (g) The Department shall select at least 2 offerors as
24finalists to potentially serve as the private manager no later
25than August 9, 2010. Upon making preliminary selections, the
26Department shall schedule a public hearing on the finalists'

 

 

SB2438 Engrossed- 13 -LRB102 17343 SMS 22834 b

1proposals and provide public notice of the hearing at least 7
2calendar days before the hearing. The notice must include all
3of the following:
4        (1) The date, time, and place of the hearing.
5        (2) The subject matter of the hearing.
6        (3) A brief description of the management agreement to
7    be awarded.
8        (4) The identity of the offerors that have been
9    selected as finalists to serve as the private manager.
10        (5) The address and telephone number of the
11    Department.
12    (h) At the public hearing, the Department shall (i)
13provide sufficient time for each finalist to present and
14explain its proposal to the Department and the Governor or the
15Governor's designee, including an opportunity to respond to
16questions posed by the Department, Governor, or designee and
17(ii) allow the public and non-selected offerors to comment on
18the presentations. The Governor or a designee shall attend the
19public hearing. After the public hearing, the Department shall
20have 14 calendar days to recommend to the Governor whether a
21management agreement should be entered into with a particular
22finalist. After reviewing the Department's recommendation, the
23Governor may accept or reject the Department's recommendation,
24and shall select a final offeror as the private manager by
25publication of a notice in the Illinois Procurement Bulletin
26on or before September 15, 2010. The Governor shall include in

 

 

SB2438 Engrossed- 14 -LRB102 17343 SMS 22834 b

1the notice a detailed explanation and the reasons why the
2final offeror is superior to other offerors and will provide
3management services in a manner that best achieves the
4objectives of this Section. The Governor shall also sign the
5management agreement with the private manager.
6    (i) Any action to contest the private manager selected by
7the Governor under this Section must be brought within 7
8calendar days after the publication of the notice of the
9designation of the private manager as provided in subsection
10(h) of this Section.
11    (j) The Lottery shall remain, for so long as a private
12manager manages the Lottery in accordance with provisions of
13this Act, a Lottery conducted by the State, and the State shall
14not be authorized to sell or transfer the Lottery to a third
15party.
16    (k) Any tangible personal property used exclusively in
17connection with the lottery that is owned by the Department
18and leased to the private manager shall be owned by the
19Department in the name of the State and shall be considered to
20be public property devoted to an essential public and
21governmental function.
22    (l) The Department may exercise any of its powers under
23this Section or any other law as necessary or desirable for the
24execution of the Department's powers under this Section.
25    (m) Neither this Section nor any management agreement
26entered into under this Section prohibits the General Assembly

 

 

SB2438 Engrossed- 15 -LRB102 17343 SMS 22834 b

1from authorizing forms of gambling that are not in direct
2competition with the Lottery. The forms of gambling authorized
3by Public Act 101-31 this amendatory Act of the 101st General
4Assembly constitute authorized forms of gambling that are not
5in direct competition with the Lottery.
6    (n) The private manager shall be subject to a complete
7investigation in the third, seventh, and tenth years of the
8agreement (if the agreement is for a 10-year term) by the
9Department in cooperation with the Auditor General to
10determine whether the private manager has complied with this
11Section and the management agreement. The private manager
12shall bear the cost of an investigation or reinvestigation of
13the private manager under this subsection.
14    (o) The powers conferred by this Section are in addition
15and supplemental to the powers conferred by any other law. If
16any other law or rule is inconsistent with this Section,
17including, but not limited to, provisions of the Illinois
18Procurement Code, then this Section controls as to any
19management agreement entered into under this Section. This
20Section and any rules adopted under this Section contain full
21and complete authority for a management agreement between the
22Department and a private manager. No law, procedure,
23proceeding, publication, notice, consent, approval, order, or
24act by the Department or any other officer, Department,
25agency, or instrumentality of the State or any political
26subdivision is required for the Department to enter into a

 

 

SB2438 Engrossed- 16 -LRB102 17343 SMS 22834 b

1management agreement under this Section. This Section contains
2full and complete authority for the Department to approve any
3contracts entered into by a private manager with a vendor
4providing goods, services, or both goods and services to the
5private manager under the terms of the management agreement,
6including subcontractors of such vendors.
7    Upon receipt of a written request from the Chief
8Procurement Officer, the Department shall provide to the Chief
9Procurement Officer a complete and un-redacted copy of the
10management agreement or any contract that is subject to the
11Department's approval authority under this subsection (o). The
12Department shall provide a copy of the agreement or contract
13to the Chief Procurement Officer in the time specified by the
14Chief Procurement Officer in his or her written request, but
15no later than 5 business days after the request is received by
16the Department. The Chief Procurement Officer must retain any
17portions of the management agreement or of any contract
18designated by the Department as confidential, proprietary, or
19trade secret information in complete confidence pursuant to
20subsection (g) of Section 7 of the Freedom of Information Act.
21The Department shall also provide the Chief Procurement
22Officer with reasonable advance written notice of any contract
23that is pending Department approval.
24    Notwithstanding any other provision of this Section to the
25contrary, the Chief Procurement Officer shall adopt
26administrative rules, including emergency rules, to establish

 

 

SB2438 Engrossed- 17 -LRB102 17343 SMS 22834 b

1a procurement process to select a successor private manager if
2a private management agreement has been terminated. The
3selection process shall at a minimum take into account the
4criteria set forth in items (1) through (4) of subsection (e)
5of this Section and may include provisions consistent with
6subsections (f), (g), (h), and (i) of this Section. The Chief
7Procurement Officer shall also implement and administer the
8adopted selection process upon the termination of a private
9management agreement. The Department, after the Chief
10Procurement Officer certifies that the procurement process has
11been followed in accordance with the rules adopted under this
12subsection (o), shall select a final offeror as the private
13manager and sign the management agreement with the private
14manager.
15    Except as provided in Sections 21.5, 21.6, 21.7, 21.8,
1621.9, 21.10, 21.11, 21.12, and 21.13, and 21.14, the
17Department shall distribute all proceeds of lottery tickets
18and shares sold in the following priority and manner:
19        (1) The payment of prizes and retailer bonuses.
20        (2) The payment of costs incurred in the operation and
21    administration of the Lottery, including the payment of
22    sums due to the private manager under the management
23    agreement with the Department.
24        (3) On the last day of each month or as soon thereafter
25    as possible, the State Comptroller shall direct and the
26    State Treasurer shall transfer from the State Lottery Fund

 

 

SB2438 Engrossed- 18 -LRB102 17343 SMS 22834 b

1    to the Common School Fund an amount that is equal to the
2    proceeds transferred in the corresponding month of fiscal
3    year 2009, as adjusted for inflation, to the Common School
4    Fund.
5        (4) On or before September 30 of each fiscal year,
6    deposit any estimated remaining proceeds from the prior
7    fiscal year, subject to payments under items (1), (2), and
8    (3), into the Capital Projects Fund. Beginning in fiscal
9    year 2019, the amount deposited shall be increased or
10    decreased each year by the amount the estimated payment
11    differs from the amount determined from each year-end
12    financial audit. Only remaining net deficits from prior
13    fiscal years may reduce the requirement to deposit these
14    funds, as determined by the annual financial audit.
15    (p) The Department shall be subject to the following
16reporting and information request requirements:
17        (1) the Department shall submit written quarterly
18    reports to the Governor and the General Assembly on the
19    activities and actions of the private manager selected
20    under this Section;
21        (2) upon request of the Chief Procurement Officer, the
22    Department shall promptly produce information related to
23    the procurement activities of the Department and the
24    private manager requested by the Chief Procurement
25    Officer; the Chief Procurement Officer must retain
26    confidential, proprietary, or trade secret information

 

 

SB2438 Engrossed- 19 -LRB102 17343 SMS 22834 b

1    designated by the Department in complete confidence
2    pursuant to subsection (g) of Section 7 of the Freedom of
3    Information Act; and
4        (3) at least 30 days prior to the beginning of the
5    Department's fiscal year, the Department shall prepare an
6    annual written report on the activities of the private
7    manager selected under this Section and deliver that
8    report to the Governor and General Assembly.
9(Source: P.A. 100-391, eff. 8-25-17; 100-587, eff. 6-4-18;
10100-647, eff. 7-30-18; 100-1068, eff. 8-24-18; 101-31, eff.
116-28-19; 101-81, eff. 7-12-19; 101-561, eff. 8-23-19; revised
1210-21-19.)
 
13    (20 ILCS 1605/20)  (from Ch. 120, par. 1170)
14    Sec. 20. State Lottery Fund.
15    (a) There is created in the State Treasury a special fund
16to be known as the State Lottery Fund. Such fund shall consist
17of all revenues received from (1) the sale of lottery tickets
18or shares, (net of commissions, fees representing those
19expenses that are directly proportionate to the sale of
20tickets or shares at the agent location, and prizes of less
21than $600 which have been validly paid at the agent level), (2)
22application fees, and (3) all other sources including moneys
23credited or transferred thereto from any other fund or source
24pursuant to law. Interest earnings of the State Lottery Fund
25shall be credited to the Common School Fund.

 

 

SB2438 Engrossed- 20 -LRB102 17343 SMS 22834 b

1    (b) The receipt and distribution of moneys under Section
221.5 of this Act shall be in accordance with Section 21.5.
3    (c) The receipt and distribution of moneys under Section
421.6 of this Act shall be in accordance with Section 21.6.
5    (d) The receipt and distribution of moneys under Section
621.7 of this Act shall be in accordance with Section 21.7.
7    (e) The receipt and distribution of moneys under Section
821.8 of this Act shall be in accordance with Section 21.8.
9    (f) The receipt and distribution of moneys under Section
1021.9 of this Act shall be in accordance with Section 21.9.
11    (g) The receipt and distribution of moneys under Section
1221.10 of this Act shall be in accordance with Section 21.10.
13    (h) The receipt and distribution of moneys under Section
1421.11 of this Act shall be in accordance with Section 21.11.
15    (i) The receipt and distribution of moneys under Section
1621.12 of this Act shall be in accordance with Section 21.12.
17    (j) The receipt and distribution of moneys under Section
1821.13 of this Act shall be in accordance with Section 21.13.
19    (k) The receipt and distribution of moneys under Section
2021.14 of this Act shall be in accordance with Section 21.14.
21(Source: P.A. 100-647, eff. 7-30-18; 100-1068, eff. 8-24-18;
22101-81, eff. 7-12-19; 101-561, eff. 8-23-19.)
 
23    (20 ILCS 1605/21.4 new)
24    Sec. 21.4. Scratch-off for United Negro College Fund.
25    (a) The Department shall offer a special instant

 

 

SB2438 Engrossed- 21 -LRB102 17343 SMS 22834 b

1scratch-off game for the benefit of United Negro College Fund
2in support of educational scholarships to university and
3college students. The game shall commence on August 1, 2021 or
4as soon thereafter, at the discretion of the Director, as is
5reasonably practical, and shall be discontinued on January 1,
62026. The operation of the game shall be governed by this Act
7and any rules adopted by the Department. If any provision of
8this Section is inconsistent with any other provision of this
9Act, then this Section governs.
10    (b) The net revenue from the United Negro College Fund in
11support of education scholarships to university and college
12students scratch-off game shall be deposited into the UNCF
13Scholarship Fund as soon as practical, but at least on a
14monthly basis. Moneys received for the purposes of this
15Section, including, without limitation, net revenue from the
16special instant scratch-off game and from gifts, grants, and
17awards from any public or private entity, must be deposited
18into the Fund. Any interest earned on moneys in the Fund must
19be deposited into the Fund. For the purposes of this
20subsection, "net revenue" means the total amount for which
21tickets have been sold less the sum of the amount paid out in
22the prizes and the actual administrative expenses of the
23Department solely related to the scratch-off game under this
24Section.
25    (c) During the time that tickets are sold for the United
26Negro College Fund in support of education scholarships to

 

 

SB2438 Engrossed- 22 -LRB102 17343 SMS 22834 b

1university and college students scratch-off game, the
2Department shall not unreasonably diminish the efforts devoted
3to marketing any other instant scratch-off lottery game.
4    (d) The Department may adopt any rules necessary to
5implement and administer the provisions of this Section.
6    (e) This Section is repealed December 31, 2026.
 
7    Section 10. The State Finance Act is amended by adding
8Section 5.935 as follows:
 
9    (30 ILCS 105/5.935 new)
10    Sec. 5.935. UNCF Scholarship Fund. This Section is
11repealed December 31, 2026.
 
12    Section 15. The School Code is amended by adding Section
132-3.119b as follows:
 
14    (105 ILCS 5/2-3.119b new)
15    Sec. 2-3.119b. UNCF Scholarship Fund Advisory Board.
16    (a) The UNCF Scholarship Fund Advisory Board is created as
17an advisory board within the Department. The Board shall
18consist of 10 members as follows: 2 members appointed by the
19President of the Senate; 2 members appointed by the Minority
20Leader of the Senate; 2 members appointed by the Speaker of the
21House of Representatives; 2 members appointed by the Minority
22Leader of the House of Representatives; and 2 members

 

 

SB2438 Engrossed- 23 -LRB102 17343 SMS 22834 b

1appointed by the Governor with the advice and consent of the
2Senate, one of whom shall be designated as chair of the Board
3at the time of appointment. If a vacancy occurs in the Board
4membership, the vacancy shall be filled in the same manner as
5the initial appointment.
6    (b) Board members shall serve without compensation but may
7be reimbursed for their reasonable travel expenses from funds
8available for that purpose. The Department shall provide staff
9and administrative support services to the Board.
10    (c) The Board must: (i) consult with the Department of
11Revenue in designing and promoting the United Negro College
12Fund in support of education scholarships to university and
13college students instant scratch-off lottery game; and (ii)
14review and direct funds to the United Negro College Fund,
15Inc., a 501(c)(3) nonprofit, and consult with the Department
16of Education in accordance with Section 21.14 of the Illinois
17Lottery Law.
18    (d) This Section is repealed September 1, 2026.
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.