SB2378 94TH GENERAL ASSEMBLY

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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2378

Introduced 1/18/2006, by Sen. Terry Link

SYNOPSIS AS INTRODUCED:

20 ILCS 1605/7.12 new

Amends the Illinois Lottery Law. Requires the Department of Revenue to establish and maintain a program that allows the purchase of lottery tickets or shares via the Internet through the services of a private vendor. Sets forth requirements for the program. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Lottery Law is amended by adding Section 7.12 as follows:

(20 ILCS 1605/7.12 new)

Sec. 7.12. Internet sales program.

(a) The Department must establish and maintain a program that allows the purchase of lottery tickets or shares via the Internet through the services of a private vendor. The Department must adopt rules necessary for the administration of this program. The provisions of this Act and the rules adopted under this Act apply to the sale of lottery tickets or shares under this program.

(b) Only one Internet website may be used for the purpose of this program. Any product that is offered for sale by retailers may be sold through the Internet program. The Internet program must include a process for buyers to establish an account with the Department through which a buyer may transfer moneys to pay for tickets. Winners must be notified electronically of their winnings, and monetary prizes of less than $100 must be deposited into the winner's account. Monetary prizes of $100 or more must be claimed in the same manner set forth under Section 19.

(c) The Department must enter into a contract with a private vendor to administer the program. In addition to any other reasonable qualifications required by the Department, the vendor must:

(1) have 10 or more years experience in handling Internet sales;

(2) possess the ability to maintain an Internet site in compliance with the the best industry standards with respect to security and the protection of personal information;

(3) possess a demonstrable ability to create and maintain an Internet site with a high volume of use with an error rate of less than one-half of 1%; and

(4) have a history of financial accountability and comply with generally accepted accounting principles.

(d) The vendor, with the cooperation and approval of the Department, must establish procedures to establish accounts and unique identification numbers for each player using the Internet and to verify the age of each of those players.

(e) The vendor is entitled to the same fees that are earned by sales agents under this Act but is not entitled to a bonus for selling a winning ticket. The vendor is entitled to a reasonable fee for each player who establishes an account, the amount of which must be negotiated between the vendor and the Department at the time the vendor's services are procured.

(f) The vendor must deliver to the Department all moneys collected through the Internet transactions within 3 days after their receipt. At the same time, the vendor must deliver to the Department records of all sales transactions from which those moneys were collected. The vendor may deduct its fees before delivering the moneys to the Department.

(g) The Department must adopt any rules necessary to administer the provisions of this Section.

Section 99. Effective date. This Act takes effect upon becoming law.