Full Text of SB4020 102nd General Assembly
SB4020eng 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning State government.
| 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, 9.1, and 20 and by adding Section 21.15 as follows:
| 6 | | (20 ILCS 1605/2) (from Ch. 120, par. 1152)
| 7 | | Sec. 2. This Act is enacted to implement and establish | 8 | | within the State
a lottery to be conducted by the State through | 9 | | the Department. The entire net proceeds of the Lottery
are to | 10 | | be used for the support of the State's Common School Fund,
| 11 | | except as provided in subsection (o) of Section 9.1 and | 12 | | Sections 21.5, 21.6, 21.7, 21.8, 21.9, 21.10, 21.11, 21.12, | 13 | | and 21.13 , and 21.15 . The General Assembly finds that it is in | 14 | | the public interest for the Department to conduct the | 15 | | functions of the Lottery with the assistance of a private | 16 | | manager under a management agreement overseen by the | 17 | | Department. The Department shall be accountable to the General | 18 | | Assembly and the people of the State through a comprehensive | 19 | | system of regulation, audits, reports, and enduring | 20 | | operational oversight. The Department's ongoing conduct of the | 21 | | Lottery through a management agreement with a private manager | 22 | | shall act to promote and ensure the integrity, security, | 23 | | honesty, and fairness of the Lottery's operation and |
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| 1 | | administration. It is the intent of the General Assembly that | 2 | | the Department shall conduct the Lottery with the assistance | 3 | | of a private manager under a management agreement at all times | 4 | | in a manner consistent with 18 U.S.C. 1307(a)(1), 1307(b)(1), | 5 | | 1953(b)(4).
| 6 | | Beginning with Fiscal Year 2018 and every year thereafter, | 7 | | any moneys transferred from the State Lottery Fund to the | 8 | | Common School Fund shall be supplemental to, and not in lieu | 9 | | of, any other money due to be transferred to the Common School | 10 | | Fund by law or appropriation. | 11 | | (Source: P.A. 101-81, eff. 7-12-19; 101-561, eff. 8-23-19; | 12 | | 102-558, eff. 8-20-21.)
| 13 | | (20 ILCS 1605/9.1) | 14 | | Sec. 9.1. Private manager and management agreement. | 15 | | (a) As used in this Section: | 16 | | "Offeror" means a person or group of persons that responds | 17 | | to a request for qualifications under this Section. | 18 | | "Request for qualifications" means all materials and | 19 | | documents prepared by the Department to solicit the following | 20 | | from offerors: | 21 | | (1) Statements of qualifications. | 22 | | (2) Proposals to enter into a management agreement, | 23 | | including the identity of any prospective vendor or | 24 | | vendors that the offeror intends to initially engage to | 25 | | assist the offeror in performing its obligations under the |
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| 1 | | management agreement. | 2 | | "Final offer" means the last proposal submitted by an | 3 | | offeror in response to the request for qualifications, | 4 | | including the identity of any prospective vendor or vendors | 5 | | that the offeror intends to initially engage to assist the | 6 | | offeror in performing its obligations under the management | 7 | | agreement. | 8 | | "Final offeror" means the offeror ultimately selected by | 9 | | the Governor to be the private manager for the Lottery under | 10 | | subsection (h) of this Section. | 11 | | (b) By September 15, 2010, the Governor shall select a | 12 | | private manager for the total management of the Lottery with | 13 | | integrated functions, such as lottery game design, supply of | 14 | | goods and services, and advertising and as specified in this | 15 | | Section. | 16 | | (c) Pursuant to the terms of this subsection, the | 17 | | Department shall endeavor to expeditiously terminate the | 18 | | existing contracts in support of the Lottery in effect on July | 19 | | 13, 2009 (the effective date of Public Act 96-37) in | 20 | | connection with the selection of the private manager. As part | 21 | | of its obligation to terminate these contracts and select the | 22 | | private manager, the Department shall establish a mutually | 23 | | agreeable timetable to transfer the functions of existing | 24 | | contractors to the private manager so that existing Lottery | 25 | | operations are not materially diminished or impaired during | 26 | | the transition. To that end, the Department shall do the |
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| 1 | | following: | 2 | | (1) where such contracts contain a provision | 3 | | authorizing termination upon notice, the Department shall | 4 | | provide notice of termination to occur upon the mutually | 5 | | agreed timetable for transfer of functions; | 6 | | (2) upon the expiration of any initial term or renewal | 7 | | term of the current Lottery contracts, the Department | 8 | | shall not renew such contract for a term extending beyond | 9 | | the mutually agreed timetable for transfer of functions; | 10 | | or | 11 | | (3) in the event any current contract provides for | 12 | | termination of that contract upon the implementation of a | 13 | | contract with the private manager, the Department shall | 14 | | perform all necessary actions to terminate the contract on | 15 | | the date that coincides with the mutually agreed timetable | 16 | | for transfer of functions. | 17 | | If the contracts to support the current operation of the | 18 | | Lottery in effect on July 13, 2009 (the effective date of | 19 | | Public Act 96-34) are not subject to termination as provided | 20 | | for in this subsection (c), then the Department may include a | 21 | | provision in the contract with the private manager specifying | 22 | | a mutually agreeable methodology for incorporation. | 23 | | (c-5) The Department shall include provisions in the | 24 | | management agreement whereby the private manager shall, for a | 25 | | fee, and pursuant to a contract negotiated with the Department | 26 | | (the "Employee Use Contract"), utilize the services of current |
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| 1 | | Department employees to assist in the administration and | 2 | | operation of the Lottery. The Department shall be the employer | 3 | | of all such bargaining unit employees assigned to perform such | 4 | | work for the private manager, and such employees shall be | 5 | | State employees, as defined by the Personnel Code. Department | 6 | | employees shall operate under the same employment policies, | 7 | | rules, regulations, and procedures, as other employees of the | 8 | | Department. In addition, neither historical representation | 9 | | rights under the Illinois Public Labor Relations Act, nor | 10 | | existing collective bargaining agreements, shall be disturbed | 11 | | by the management agreement with the private manager for the | 12 | | management of the Lottery. | 13 | | (d) The management agreement with the private manager | 14 | | shall include all of the following: | 15 | | (1) A term not to exceed 10 years, including any | 16 | | renewals. | 17 | | (2) A provision specifying that the Department: | 18 | | (A) shall exercise actual control over all | 19 | | significant business decisions; | 20 | | (A-5) has the authority to direct or countermand | 21 | | operating decisions by the private manager at any | 22 | | time; | 23 | | (B) has ready access at any time to information | 24 | | regarding Lottery operations; | 25 | | (C) has the right to demand and receive | 26 | | information from the private manager concerning any |
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| 1 | | aspect of the Lottery operations at any time; and | 2 | | (D) retains ownership of all trade names, | 3 | | trademarks, and intellectual property associated with | 4 | | the Lottery. | 5 | | (3) A provision imposing an affirmative duty on the | 6 | | private manager to provide the Department with material | 7 | | information and with any information the private manager | 8 | | reasonably believes the Department would want to know to | 9 | | enable the Department to conduct the Lottery. | 10 | | (4) A provision requiring the private manager to | 11 | | provide the Department with advance notice of any | 12 | | operating decision that bears significantly on the public | 13 | | interest, including, but not limited to, decisions on the | 14 | | kinds of games to be offered to the public and decisions | 15 | | affecting the relative risk and reward of the games being | 16 | | offered, so the Department has a reasonable opportunity to | 17 | | evaluate and countermand that decision. | 18 | | (5) A provision providing for compensation of the | 19 | | private manager that may consist of, among other things, a | 20 | | fee for services and a performance based bonus as | 21 | | consideration for managing the Lottery, including terms | 22 | | that may provide the private manager with an increase in | 23 | | compensation if Lottery revenues grow by a specified | 24 | | percentage in a given year. | 25 | | (6) (Blank). | 26 | | (7) A provision requiring the deposit of all Lottery |
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| 1 | | proceeds to be deposited into the State Lottery Fund | 2 | | except as otherwise provided in Section 20 of this Act. | 3 | | (8) A provision requiring the private manager to | 4 | | locate its principal office within the State. | 5 | | (8-5) A provision encouraging that at least 20% of the | 6 | | cost of contracts entered into for goods and services by | 7 | | the private manager in connection with its management of | 8 | | the Lottery, other than contracts with sales agents or | 9 | | technical advisors, be awarded to businesses that are a | 10 | | minority-owned business, a women-owned business, or a | 11 | | business owned by a person with disability, as those terms | 12 | | are defined in the Business Enterprise for Minorities, | 13 | | Women, and Persons with Disabilities Act. | 14 | | (9) A requirement that so long as the private manager | 15 | | complies with all the conditions of the agreement under | 16 | | the oversight of the Department, the private manager shall | 17 | | have the following duties and obligations with respect to | 18 | | the management of the Lottery: | 19 | | (A) The right to use equipment and other assets | 20 | | used in the operation of the Lottery. | 21 | | (B) The rights and obligations under contracts | 22 | | with retailers and vendors. | 23 | | (C) The implementation of a comprehensive security | 24 | | program by the private manager. | 25 | | (D) The implementation of a comprehensive system | 26 | | of internal audits. |
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| 1 | | (E) The implementation of a program by the private | 2 | | manager to curb compulsive gambling by persons playing | 3 | | the Lottery. | 4 | | (F) A system for determining (i) the type of | 5 | | Lottery games, (ii) the method of selecting winning | 6 | | tickets, (iii) the manner of payment of prizes to | 7 | | holders of winning tickets, (iv) the frequency of | 8 | | drawings of winning tickets, (v) the method to be used | 9 | | in selling tickets, (vi) a system for verifying the | 10 | | validity of tickets claimed to be winning tickets, | 11 | | (vii) the basis upon which retailer commissions are | 12 | | established by the manager, and (viii) minimum | 13 | | payouts. | 14 | | (10) A requirement that advertising and promotion must | 15 | | be consistent with Section 7.8a of this Act. | 16 | | (11) A requirement that the private manager market the | 17 | | Lottery to those residents who are new, infrequent, or | 18 | | lapsed players of the Lottery, especially those who are | 19 | | most likely to make regular purchases on the Internet as | 20 | | permitted by law. | 21 | | (12) A code of ethics for the private manager's | 22 | | officers and employees. | 23 | | (13) A requirement that the Department monitor and | 24 | | oversee the private manager's practices and take action | 25 | | that the Department considers appropriate to ensure that | 26 | | the private manager is in compliance with the terms of the |
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| 1 | | management agreement, while allowing the manager, unless | 2 | | specifically prohibited by law or the management | 3 | | agreement, to negotiate and sign its own contracts with | 4 | | vendors. | 5 | | (14) A provision requiring the private manager to | 6 | | periodically file, at least on an annual basis, | 7 | | appropriate financial statements in a form and manner | 8 | | acceptable to the Department. | 9 | | (15) Cash reserves requirements. | 10 | | (16) Procedural requirements for obtaining the prior | 11 | | approval of the Department when a management agreement or | 12 | | an interest in a management agreement is sold, assigned, | 13 | | transferred, or pledged as collateral to secure financing. | 14 | | (17) Grounds for the termination of the management | 15 | | agreement by the Department or the private manager. | 16 | | (18) Procedures for amendment of the agreement. | 17 | | (19) A provision requiring the private manager to | 18 | | engage in an open and competitive bidding process for any | 19 | | procurement having a cost in excess of $50,000 that is not | 20 | | a part of the private manager's final offer. The process | 21 | | shall favor the selection of a vendor deemed to have | 22 | | submitted a proposal that provides the Lottery with the | 23 | | best overall value. The process shall not be subject to | 24 | | the provisions of the Illinois Procurement Code, unless | 25 | | specifically required by the management agreement. | 26 | | (20) The transition of rights and obligations, |
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| 1 | | including any associated equipment or other assets used in | 2 | | the operation of the Lottery, from the manager to any | 3 | | successor manager of the lottery, including the | 4 | | Department, following the termination of or foreclosure | 5 | | upon the management agreement. | 6 | | (21) Right of use of copyrights, trademarks, and | 7 | | service marks held by the Department in the name of the | 8 | | State. The agreement must provide that any use of them by | 9 | | the manager shall only be for the purpose of fulfilling | 10 | | its obligations under the management agreement during the | 11 | | term of the agreement. | 12 | | (22) The disclosure of any information requested by | 13 | | the Department to enable it to comply with the reporting | 14 | | requirements and information requests provided for under | 15 | | subsection (p) of this Section. | 16 | | (e) Notwithstanding any other law to the contrary, the | 17 | | Department shall select a private manager through a | 18 | | competitive request for qualifications process consistent with | 19 | | Section 20-35 of the Illinois Procurement Code, which shall | 20 | | take into account: | 21 | | (1) the offeror's ability to market the Lottery to | 22 | | those residents who are new, infrequent, or lapsed players | 23 | | of the Lottery, especially those who are most likely to | 24 | | make regular purchases on the Internet; | 25 | | (2) the offeror's ability to address the State's | 26 | | concern with the social effects of gambling on those who |
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| 1 | | can least afford to do so; | 2 | | (3) the offeror's ability to provide the most | 3 | | successful management of the Lottery for the benefit of | 4 | | the people of the State based on current and past business | 5 | | practices or plans of the offeror; and | 6 | | (4) the offeror's poor or inadequate past performance | 7 | | in servicing, equipping, operating or managing a lottery | 8 | | on behalf of Illinois, another state, State or foreign | 9 | | government and attracting persons who are not currently | 10 | | regular players of a lottery. | 11 | | (f) The Department may retain the services of an advisor | 12 | | or advisors with significant experience in financial services | 13 | | or the management, operation, and procurement of goods, | 14 | | services, and equipment for a government-run lottery to assist | 15 | | in the preparation of the terms of the request for | 16 | | qualifications and selection of the private manager. Any | 17 | | prospective advisor seeking to provide services under this | 18 | | subsection (f) shall disclose any material business or | 19 | | financial relationship during the past 3 years with any | 20 | | potential offeror, or with a contractor or subcontractor | 21 | | presently providing goods, services, or equipment to the | 22 | | Department to support the Lottery. The Department shall | 23 | | evaluate the material business or financial relationship of | 24 | | each prospective advisor. The Department shall not select any | 25 | | prospective advisor with a substantial business or financial | 26 | | relationship that the Department deems to impair the |
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| 1 | | objectivity of the services to be provided by the prospective | 2 | | advisor. During the course of the advisor's engagement by the | 3 | | Department, and for a period of one year thereafter, the | 4 | | advisor shall not enter into any business or financial | 5 | | relationship with any offeror or any vendor identified to | 6 | | assist an offeror in performing its obligations under the | 7 | | management agreement. Any advisor retained by the Department | 8 | | shall be disqualified from being an offeror.
The Department | 9 | | shall not include terms in the request for qualifications that | 10 | | provide a material advantage whether directly or indirectly to | 11 | | any potential offeror, or any contractor or subcontractor | 12 | | presently providing goods, services, or equipment to the | 13 | | Department to support the Lottery, including terms contained | 14 | | in previous responses to requests for proposals or | 15 | | qualifications submitted to Illinois, another state, State or | 16 | | foreign government when those terms are uniquely associated | 17 | | with a particular potential offeror, contractor, or | 18 | | subcontractor. The request for proposals offered by the | 19 | | Department on December 22, 2008 as "LOT08GAMESYS" and | 20 | | reference number "22016176" is declared void. | 21 | | (g) The Department shall select at least 2 offerors as | 22 | | finalists to potentially serve as the private manager no later | 23 | | than August 9, 2010. Upon making preliminary selections, the | 24 | | Department shall schedule a public hearing on the finalists' | 25 | | proposals and provide public notice of the hearing at least 7 | 26 | | calendar days before the hearing. The notice must include all |
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| 1 | | of the following: | 2 | | (1) The date, time, and place of the hearing. | 3 | | (2) The subject matter of the hearing. | 4 | | (3) A brief description of the management agreement to | 5 | | be awarded. | 6 | | (4) The identity of the offerors that have been | 7 | | selected as finalists to serve as the private manager. | 8 | | (5) The address and telephone number of the | 9 | | Department. | 10 | | (h) At the public hearing, the Department shall (i) | 11 | | provide sufficient time for each finalist to present and | 12 | | explain its proposal to the Department and the Governor or the | 13 | | Governor's designee, including an opportunity to respond to | 14 | | questions posed by the Department, Governor, or designee and | 15 | | (ii) allow the public and non-selected offerors to comment on | 16 | | the presentations. The Governor or a designee shall attend the | 17 | | public hearing. After the public hearing, the Department shall | 18 | | have 14 calendar days to recommend to the Governor whether a | 19 | | management agreement should be entered into with a particular | 20 | | finalist. After reviewing the Department's recommendation, the | 21 | | Governor may accept or reject the Department's recommendation, | 22 | | and shall select a final offeror as the private manager by | 23 | | publication of a notice in the Illinois Procurement Bulletin | 24 | | on or before September 15, 2010. The Governor shall include in | 25 | | the notice a detailed explanation and the reasons why the | 26 | | final offeror is superior to other offerors and will provide |
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| 1 | | management services in a manner that best achieves the | 2 | | objectives of this Section. The Governor shall also sign the | 3 | | management agreement with the private manager. | 4 | | (i) Any action to contest the private manager selected by | 5 | | the Governor under this Section must be brought within 7 | 6 | | calendar days after the publication of the notice of the | 7 | | designation of the private manager as provided in subsection | 8 | | (h) of this Section. | 9 | | (j) The Lottery shall remain, for so long as a private | 10 | | manager manages the Lottery in accordance with provisions of | 11 | | this Act, a Lottery conducted by the State, and the State shall | 12 | | not be authorized to sell or transfer the Lottery to a third | 13 | | party. | 14 | | (k) Any tangible personal property used exclusively in | 15 | | connection with the lottery that is owned by the Department | 16 | | and leased to the private manager shall be owned by the | 17 | | Department in the name of the State and shall be considered to | 18 | | be public property devoted to an essential public and | 19 | | governmental function. | 20 | | (l) The Department may exercise any of its powers under | 21 | | this Section or any other law as necessary or desirable for the | 22 | | execution of the Department's powers under this Section. | 23 | | (m) Neither this Section nor any management agreement | 24 | | entered into under this Section prohibits the General Assembly | 25 | | from authorizing forms of gambling that are not in direct | 26 | | competition with the Lottery. The forms of gambling authorized |
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| 1 | | by Public Act 101-31 constitute authorized forms of gambling | 2 | | that are not in direct competition with the Lottery. | 3 | | (n) The private manager shall be subject to a complete | 4 | | investigation in the third, seventh, and tenth years of the | 5 | | agreement (if the agreement is for a 10-year term) by the | 6 | | Department in cooperation with the Auditor General to | 7 | | determine whether the private manager has complied with this | 8 | | Section and the management agreement. The private manager | 9 | | shall bear the cost of an investigation or reinvestigation of | 10 | | the private manager under this subsection. | 11 | | (o) The powers conferred by this Section are in addition | 12 | | and supplemental to the powers conferred by any other law. If | 13 | | any other law or rule is inconsistent with this Section, | 14 | | including, but not limited to, provisions of the Illinois | 15 | | Procurement Code, then this Section controls as to any | 16 | | management agreement entered into under this Section. This | 17 | | Section and any rules adopted under this Section contain full | 18 | | and complete authority for a management agreement between the | 19 | | Department and a private manager. No law, procedure, | 20 | | proceeding, publication, notice, consent, approval, order, or | 21 | | act by the Department or any other officer, Department, | 22 | | agency, or instrumentality of the State or any political | 23 | | subdivision is required for the Department to enter into a | 24 | | management agreement under this Section. This Section contains | 25 | | full and complete authority for the Department to approve any | 26 | | contracts entered into by a private manager with a vendor |
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| 1 | | providing goods, services, or both goods and services to the | 2 | | private manager under the terms of the management agreement, | 3 | | including subcontractors of such vendors. | 4 | | Upon receipt of a written request from the Chief | 5 | | Procurement Officer, the Department shall provide to the Chief | 6 | | Procurement Officer a complete and unredacted un-redacted copy | 7 | | of the management agreement or any contract that is subject to | 8 | | the Department's approval authority under this subsection (o). | 9 | | The Department shall provide a copy of the agreement or | 10 | | contract to the Chief Procurement Officer in the time | 11 | | specified by the Chief Procurement Officer in his or her | 12 | | written request, but no later than 5 business days after the | 13 | | request is received by the Department. The Chief Procurement | 14 | | Officer must retain any portions of the management agreement | 15 | | or of any contract designated by the Department as | 16 | | confidential, proprietary, or trade secret information in | 17 | | complete confidence pursuant to subsection (g) of Section 7 of | 18 | | the Freedom of Information Act. The Department shall also | 19 | | provide the Chief Procurement Officer with reasonable advance | 20 | | written notice of any contract that is pending Department | 21 | | approval. | 22 | | Notwithstanding any other provision of this Section to the | 23 | | contrary, the Chief Procurement Officer shall adopt | 24 | | administrative rules, including emergency rules, to establish | 25 | | a procurement process to select a successor private manager if | 26 | | a private management agreement has been terminated. The |
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| 1 | | selection process shall at a minimum take into account the | 2 | | criteria set forth in items (1) through (4) of subsection (e) | 3 | | of this Section and may include provisions consistent with | 4 | | subsections (f), (g), (h), and (i) of this Section. The Chief | 5 | | Procurement Officer shall also implement and administer the | 6 | | adopted selection process upon the termination of a private | 7 | | management agreement. The Department, after the Chief | 8 | | Procurement Officer certifies that the procurement process has | 9 | | been followed in accordance with the rules adopted under this | 10 | | subsection (o), shall select a final offeror as the private | 11 | | manager and sign the management agreement with the private | 12 | | manager. | 13 | | Except as provided in Sections 21.5, 21.6, 21.7, 21.8, | 14 | | 21.9, 21.10, 21.11, 21.12, and 21.13 , and 21.15 , the | 15 | | Department shall distribute all proceeds of lottery tickets | 16 | | and shares sold in the following priority and manner: | 17 | | (1) The payment of prizes and retailer bonuses. | 18 | | (2) The payment of costs incurred in the operation and | 19 | | administration of the Lottery, including the payment of | 20 | | sums due to the private manager under the management | 21 | | agreement with the Department. | 22 | | (3) On the last day of each month or as soon thereafter | 23 | | as possible, the State Comptroller shall direct and the | 24 | | State Treasurer shall transfer from the State Lottery Fund | 25 | | to the Common School Fund an amount that is equal to the | 26 | | proceeds transferred in the corresponding month of fiscal |
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| 1 | | year 2009, as adjusted for inflation, to the Common School | 2 | | Fund. | 3 | | (4) On or before September 30 of each fiscal year, | 4 | | deposit any estimated remaining proceeds from the prior | 5 | | fiscal year, subject to payments under items (1), (2), and | 6 | | (3), into the Capital Projects Fund. Beginning in fiscal | 7 | | year 2019, the amount deposited shall be increased or | 8 | | decreased each year by the amount the estimated payment | 9 | | differs from the amount determined from each year-end | 10 | | financial audit. Only remaining net deficits from prior | 11 | | fiscal years may reduce the requirement to deposit these | 12 | | funds, as determined by the annual financial audit. | 13 | | (p) The Department shall be subject to the following | 14 | | reporting and information request requirements: | 15 | | (1) the Department shall submit written quarterly | 16 | | reports to the Governor and the General Assembly on the | 17 | | activities and actions of the private manager selected | 18 | | under this Section; | 19 | | (2) upon request of the Chief Procurement Officer, the | 20 | | Department shall promptly produce information related to | 21 | | the procurement activities of the Department and the | 22 | | private manager requested by the Chief Procurement | 23 | | Officer; the Chief Procurement Officer must retain | 24 | | confidential, proprietary, or trade secret information | 25 | | designated by the Department in complete confidence | 26 | | pursuant to subsection (g) of Section 7 of the Freedom of |
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| 1 | | Information Act; and | 2 | | (3) at least 30 days prior to the beginning of the | 3 | | Department's fiscal year, the Department shall prepare an | 4 | | annual written report on the activities of the private | 5 | | manager selected under this Section and deliver that | 6 | | report to the Governor and General Assembly. | 7 | | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; | 8 | | 101-561, eff. 8-23-19; 102-558, eff. 8-20-21.)
| 9 | | (20 ILCS 1605/20) (from Ch. 120, par. 1170)
| 10 | | Sec. 20. State Lottery Fund.
| 11 | | (a) There is created in the State Treasury a special fund | 12 | | to be
known as the State Lottery Fund. Such fund shall consist | 13 | | of all revenues
received from (1) the sale of lottery tickets | 14 | | or shares, (net of
commissions, fees
representing those | 15 | | expenses that are directly proportionate to the
sale of | 16 | | tickets or shares at the agent location, and prizes of less
| 17 | | than
$600 which
have been validly paid at the agent
level), (2) | 18 | | application fees,
and (3) all other sources including moneys | 19 | | credited or transferred thereto
from
any other fund
or source | 20 | | pursuant to law. Interest earnings of the State Lottery Fund
| 21 | | shall be credited to the Common School Fund.
| 22 | | (b) The receipt and distribution of moneys under Section | 23 | | 21.5 of this Act shall be in accordance with Section 21.5.
| 24 | | (c) The receipt and distribution of moneys under Section | 25 | | 21.6 of this Act shall be in accordance with Section 21.6. |
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| 1 | | (d) The receipt and distribution of moneys under Section | 2 | | 21.7 of this Act shall be in accordance with Section 21.7.
| 3 | | (e)
The receipt and distribution of moneys under Section | 4 | | 21.8
of this Act shall be in accordance with Section 21.8.
| 5 | | (f) The receipt and distribution of moneys under Section | 6 | | 21.9 of this Act shall be in accordance with Section 21.9. | 7 | | (g) The receipt and distribution of moneys under Section | 8 | | 21.10 of this Act shall be in accordance with Section 21.10. | 9 | | (h) The receipt and distribution of moneys under Section | 10 | | 21.11 of this Act shall be in accordance with Section 21.11. | 11 | | (i) The receipt and distribution of moneys under Section | 12 | | 21.12 of this Act shall be in accordance with Section 21.12. | 13 | | (j) The receipt and distribution of moneys under Section | 14 | | 21.13 of this Act shall be in accordance with Section 21.13. | 15 | | (k) The receipt and distribution of moneys under Section | 16 | | 25-70 of the Sports Wagering Act shall be in accordance with | 17 | | Section 25-70 of the Sports Wagering Act. | 18 | | (l) The receipt and distribution of moneys under Section | 19 | | 21.15 of this Act shall be in accordance with Section 21.15. | 20 | | (Source: P.A. 101-81, eff. 7-12-19; 101-561, eff. 8-23-19; | 21 | | 102-16, eff. 6-17-21.)
| 22 | | (20 ILCS 1605/21.15 new) | 23 | | Sec. 21.15. Scratch-off for United Negro College Fund. | 24 | | (a) The Department shall offer a special instant | 25 | | scratch-off game for the benefit of United Negro College Fund |
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| 1 | | in support of educational scholarships to university and | 2 | | college students. The game shall commence on August 1, 2022 or | 3 | | as soon thereafter, at the discretion of the Director, as is | 4 | | reasonably practical, and shall be discontinued on January 1, | 5 | | 2028. The operation of the game shall be governed by this Act | 6 | | and any rules adopted by the Department. If any provision of | 7 | | this Section is inconsistent with any other provision of this | 8 | | Act, then this Section governs. | 9 | | (b) The net revenue from the United Negro College Fund in | 10 | | support of education scholarships to university and college | 11 | | students scratch-off game shall be deposited into the UNCF | 12 | | Scholarship Fund as soon as practical, but at least on a | 13 | | monthly basis.
Moneys received for the purposes of this | 14 | | Section, including, without limitation, net revenue from the | 15 | | special instant scratch-off game and from gifts, grants, and | 16 | | awards from any public or private entity, must be deposited | 17 | | into the Fund. Any interest earned on moneys in the Fund must | 18 | | be deposited into the Fund.
For the purposes of this | 19 | | subsection, "net revenue" means the total amount for which | 20 | | tickets have been sold less the sum of the amount paid out in | 21 | | the prizes and the actual administrative expenses of the | 22 | | Department solely related to the scratch-off game under this | 23 | | Section. | 24 | | (c) During the time that tickets are sold for the United | 25 | | Negro College Fund in support of education scholarships to | 26 | | university and college students scratch-off game, the |
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| 1 | | Department shall not unreasonably diminish the efforts devoted | 2 | | to marketing any 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 | | (e) This Section is repealed January 1, 2028. | 6 | | Section 10. The State Finance Act is amended by adding | 7 | | Section 5.970 as follows: | 8 | | (30 ILCS 105/5.970 new) | 9 | | Sec. 5.970. The UNCF Scholarship Fund. This Section is | 10 | | repealed January 1, 2028. | 11 | | Section 15. The School Code is amended by adding Section | 12 | | 2-3.119b as follows: | 13 | | (105 ILCS 5/2-3.119b new) | 14 | | Sec. 2-3.119b. UNCF Scholarship Fund Advisory Board. | 15 | | (a) The UNCF Scholarship Fund Advisory Board is created as | 16 | | an advisory board within the Department. The Board shall | 17 | | consist of 10 members as follows: 2 members appointed by the | 18 | | President of the Senate; 2 members appointed by the Minority | 19 | | Leader of the Senate; 2 members appointed by the Speaker of the | 20 | | House of Representatives; 2 members appointed by the Minority | 21 | | Leader of the House of Representatives; and 2 members | 22 | | appointed by the Governor with the advice and consent of the |
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| 1 | | Senate, one of whom shall be designated as chair of the Board | 2 | | at the time of appointment.
If a vacancy occurs in the Board | 3 | | membership, the vacancy shall be filled in the same manner as | 4 | | the initial appointment. | 5 | | (b) Board members shall serve without compensation but may | 6 | | be reimbursed for their reasonable travel expenses from funds | 7 | | available for that purpose. The Department shall provide staff | 8 | | and administrative support services to the Board. | 9 | | (c) The Board must:
(i) consult with the Department of | 10 | | Revenue in designing and promoting the United Negro College | 11 | | Fund in support of education scholarships to university and | 12 | | college students instant scratch-off lottery game; and
(ii) | 13 | | review and direct funds to the United Negro College Fund, | 14 | | Inc., a 501(c)(3) nonprofit, and consult with the Department | 15 | | of Education in accordance with Section 21.15 of the Illinois | 16 | | Lottery Law. | 17 | | (d) This Section is repealed September 1, 2027.
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.
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