Illinois General Assembly - Full Text of HB1496
Illinois General Assembly

Previous General Assemblies

Full Text of HB1496  95th General Assembly

HB1496sam002 95TH GENERAL ASSEMBLY

Sen. Jeffrey M. Schoenberg

Filed: 5/30/2008

 

 


 

 


 
09500HB1496sam002 LRB095 08420 HLH 51788 a

1
AMENDMENT TO HOUSE BILL 1496

2     AMENDMENT NO. ______. Amend House Bill 1496 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois Lottery Law is amended by changing
5 Sections 2, 3, 4, 5, 6, 7.1, 7.2, 7.3, 7.4, 7.5, 7.6, 7.8,
6 7.8a, 7.11, 8, 8.1, 9, 10, 10.1, 10.1a, 10.2, 10.3, 10.4, 10.5,
7 10.6, 10.7, 11, 12, 13, 14, 14.2, 14.3, 15, 16, 17, 19, 20, 21,
8 21.2, 21.3, 21.5, 24, 25, 26, 27, and 28 and by adding Sections
9 2.1, 2.2, 2.3, 6.1, 6.2, 20.2, and 21.9 as follows:
 
10     (20 ILCS 1605/2)  (from Ch. 120, par. 1152)
11     Sec. 2. This Act is enacted to implement and establish
12 within the State a lottery to be conducted operated by the
13 State, through the Department, whether that lottery is operated
14 and managed by the State or by a third party pursuant to a
15 Management and Concession Agreement. The operations of a
16 lottery are unique activities for State government, and private

 

 

09500HB1496sam002 - 2 - LRB095 08420 HLH 51788 a

1 management will best enable the lottery to be operated in an
2 entrepreneurial and business-like manner, thereby maximizing
3 value for and benefit to the citizens of the State. Any such
4 private manager shall be accountable to the State through a
5 comprehensive system of State regulation and enduring
6 operational oversight. The State's ongoing conduct of the
7 Lottery throughout the term of a Concession shall act to
8 promote and ensure the integrity, security, honesty, and
9 fairness of the Lottery's operation and administration. the
10 entire net proceeds of which are to be used for the support of
11 the State's Common School Fund, except as provided in Sections
12 21.2, 21.5, 21.6, and 21.7, and 21.7.
13 (Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05;
14 95-331, eff. 8-21-07; 95-673, eff. 10-11-07; 95-674, eff.
15 10-11-07; revised 12-5-07.)
 
16     (20 ILCS 1605/2.1 new)
17     Sec. 2.1. Sale of Lottery prohibited. Notwithstanding any
18 provision of this Act or other applicable law to the contrary,
19 the State may, pursuant to a competitive process that complies
20 with the Illinois Procurement Code and rules adopted under that
21 Code, enter into a Management and Concession Agreement with a
22 third party pursuant to which that party may be authorized to
23 manage or operate the Lottery on behalf of the State, and
24 further pursuant to which that party may receive certain
25 Lottery revenues in consideration of the payment of a fee or

 

 

09500HB1496sam002 - 3 - LRB095 08420 HLH 51788 a

1 fees to the State for that right, provided that the Concession
2 is managed and operated in accordance with the provisions of
3 this Act and that the State at all times retains control of the
4 Lottery and exercises supervisory authority over the
5 Concession sufficient to implement the terms of the Management
6 and Concession Agreement and to effect the purposes of this
7 Act. The Lottery shall remain, for so long as a Concessionaire
8 manages and operates the Concession in accordance with
9 provisions of this Act, a Lottery conducted by the State, and
10 the State shall not be authorized to sell or transfer the
11 Lottery to a third party.
12     The terms of a Management and Concession Agreement shall
13 include, without limitation, all of the following:
14         (a) The term of the Concession shall be no less than 50
15     years and shall not exceed 60 years, with extensions of up
16     to 5 additional years.
17         (b) The consideration paid to the State for a
18     Concessionaire's right to manage and operate the
19     Concession shall have a value not less than
20     $10,000,000,000.
21         (c) At least 19% of the value of all contracts and
22     agreements entered into by the Concessionaire for goods and
23     services in connection with its management and operation of
24     the Lottery, other than contracts or agreements with sales
25     agents or technical operators, must be awarded to
26     businesses that are a "minority owned business", a "female

 

 

09500HB1496sam002 - 4 - LRB095 08420 HLH 51788 a

1     owned business", or a business owned by a person with a
2     disability as those terms are defined in the Business
3     Enterprise for Minorities, Females, and Persons with
4     Disabilities Act. For purposes of this item (c), all
5     contracts entered into by a technical operator shall be
6     deemed to be contracts entered by the Concessionaire. A
7     contract by which the Concessionaire retains a technical
8     operator shall be exempt from the requirements of this item
9     (c). For purposes of this item (c), a technical operator
10     means an entity that, pursuant to the terms of this
11     amendatory Act of the 95th General Assembly and the
12     Concession Agreement, is substantially involved in the
13     day-to-day operations of the Lottery in a manner that
14     includes (i) the design and production of lottery games or
15     lottery game equipment, or (ii) the provision and
16     maintenance of lottery equipment, or (iii) the operation
17     and monitoring of lottery games or other regulated gaming
18     activities, or (iv) the development and maintenance of a
19     distribution network, or (v) the verification of game
20     outcomes, or an entity responsible for other significant
21     regulated gaming activities.
22         (d) The State shall at all times during which a
23     Management and Concession Agreement is in effect retain the
24     right to receive an amount equal to 20% of Lottery gross
25     revenues, after prize payouts.
26         (e) The minimum payout ratios with respect to instant

 

 

09500HB1496sam002 - 5 - LRB095 08420 HLH 51788 a

1     Lottery games and online Lottery games, as defined in the
2     Management and Concession Agreement, shall be in the
3     aggregate at least 55% of all ticket revenues attributable
4     to such instant Lottery games and online Lottery games.
5         (f) In any zip code where the poverty rate, as
6     determined by using the most recent data released by the
7     United States Census Bureau, is at least 3% higher than the
8     State poverty rate as determined using the most recent data
9     released by the United States Census Bureau, the
10     Concessionaire shall not increase the number of licensed
11     Lottery ticket vendors by greater than 10% from the number
12     of vendors then licensed in the zip code.
13     The Director is authorized to enter into a Management and
14 Concession Agreement on behalf of the State on the foregoing
15 terms and such other terms as the Director shall determine,
16 consistent with this amendatory Act of the 95th General
17 Assembly. All of the acts of officials authorized by the State
18 that are in conformity with the intent and purposes of this
19 amendatory Act of the 95th General Assembly, whether heretofore
20 or hereafter taken or done, shall be and are ratified,
21 confirmed, authorized, and approved hereby in all respects. To
22 the extent any provision of the Illinois Procurement Code (30
23 ILCS 500/) or any other law is in conflict with this amendatory
24 Act of the 95th General Assembly insofar as it relates to any
25 Transaction Documents, the provisions of this amendatory Act
26 shall be controlling.

 

 

09500HB1496sam002 - 6 - LRB095 08420 HLH 51788 a

1     The Director, and such State officers as may be designated
2 by the Director, are authorized to execute and deliver on
3 behalf of the State any and all documents as the executing
4 State officer shall deem appropriate in connection with the
5 State entering into or performing its obligations under the
6 Transaction Documents and to do all such other acts and things
7 as may be necessary, advisable, or appropriate to carry out,
8 and perform the State's obligations under the Transaction
9 Documents.
10     The Department of Revenue is authorized and empowered to
11 enter into a public/private partnership agreement with any
12 lessor of the State Lottery (the "Concessionaire"), whereby the
13 Department of Revenue employees may provide services for a fee
14 to the Concessionaire to assist the Concessionaire in the
15 administration and operation of the State Lottery. The
16 Concessionaire shall contract with the Department of Revenue
17 under a public/private partnership agreement for all work that,
18 if performed by employees of the State, would be performed by
19 employees, as defined by the Illinois Public Labor Relations
20 Act (IPLRA). The Department of Revenue shall be the employer of
21 all non-managerial, non-supervisory, and non-confidential
22 employees, as defined by the IPLRA, assigned to perform such
23 work for the Concessionaire pursuant to the public/private
24 partnership agreement, and such employees shall be State
25 employees, as defined by the Personnel Code. As employees of
26 the Department of Revenue, such employees shall have the same

 

 

09500HB1496sam002 - 7 - LRB095 08420 HLH 51788 a

1 employment rights and duties, and be subject to the same
2 employment policies, rules, regulations, and procedures, as
3 other employees of the Department of Revenue. Neither
4 historical representation rights under the IPLRA nor existing
5 collective bargaining agreements shall be disturbed by the sale
6 or lease of the State Lottery. Upon expiration of the
7 applicable collective bargaining agreement on or after June 30,
8 2012, the Concessionaire shall retain the employees performing
9 such work on the expiration date and shall recognize the
10 bargaining agent or agents and honor any existing agreement in
11 conformity with applicable law. During the pendency of a
12 collective bargaining agreement expiring on or after June 30,
13 2012, any employee assigned by the State to perform work for
14 the Concessionaire shall, upon written request to the Director
15 of Central Management Services, be offered employment, without
16 loss of pay or benefits with the State of Illinois, in the same
17 county in which the employee was assigned to perform such work.
 
18     (20 ILCS 1605/2.2 new)
19     Sec. 2.2. Proceeds of concession transaction and future
20 proceeds payable to the State under a Management and Concession
21 Agreement; payment of transaction costs; deposit of proceeds
22 into Funds. After the payment of all transaction-related costs,
23 in one or a series of transactions: (i) proceeds of the
24 Concession transaction or transactions authorized pursuant to
25 this amendatory Act of the 95th General Assembly shall be

 

 

09500HB1496sam002 - 8 - LRB095 08420 HLH 51788 a

1 deposited into the Illinois Works Fund in an amount not to
2 exceed $7,000,000,000, (ii) all proceeds of the Concession
3 transaction or transactions authorized pursuant to this
4 amendatory Act of the 95th General Assembly in excess of
5 $7,000,000,000 but not greater than $11,000,000,000 shall be
6 deposited into the Illinois Education Trust Fund, and (iii) all
7 proceeds of the Concession transaction or transactions
8 authorized pursuant to this amendatory Act of the 95th General
9 Assembly in excess of $11,000,000,000 shall be deposited into
10 the Pension Stabilization Fund.
 
11     (20 ILCS 1605/2.3 new)
12     Sec. 2.3. Creation of the Illinois Education Trust Fund;
13 State Treasurer's investment of moneys. There is created in the
14 State Treasury the Illinois Education Trust Fund.
15 Notwithstanding any other statute to the contrary, the State
16 Treasurer is hereby authorized to and shall invest all moneys
17 deposited into the Illinois Education Trust Fund pursuant to
18 this amendatory Act of the 95th General Assembly, and the
19 Treasurer shall make all reasonable efforts to accrue a return
20 on investment of at least 5% per annum, using debt instruments
21 or securities that are either (i) issued by a counterparty with
22 a credit rating of Aa3 or higher by Moody's Investor Services
23 or AA- or higher by Standard & Poor's or (ii) enhanced and bear
24 a credit rating of Aa3 or higher by Moody's Investor Services
25 or AA- or higher by Standard & Poor's. Any changes in the

 

 

09500HB1496sam002 - 9 - LRB095 08420 HLH 51788 a

1 purposes or use of this Fund, or changes in the revenues
2 directed to this Fund, must be approved by a three-fifths vote
3 of the members of both the Senate and the House of
4 Representatives.
5     Notwithstanding any other State law to the contrary, on or
6 before the last day of each fiscal year the State Comptroller
7 shall direct and the State Treasurer shall transfer from the
8 Illinois Education Trust Fund to the State Lottery Fund the
9 amount necessary to provide for the transfer of $600,000,000 in
10 that fiscal year from the State Lottery Fund to the Common
11 School Fund in accordance with the provisions of Section 20.2
12 of this Act.
 
13     (20 ILCS 1605/3)  (from Ch. 120, par. 1153)
14     Sec. 3. Definitions. For the purposes of this Act:
15     a. "Lottery" or "State Lottery" means the lottery or
16 lotteries established and operated pursuant to this Act.
17     b. "Board" means the Lottery Control Board created by this
18 Act.
19     c. "Department" means the Department of Revenue.
20     d. "Director" means the Director of Revenue.
21     e. "Chairman" means the Chairman of the Lottery Control
22 Board.
23     f. "Multi-state game directors" means such persons,
24 including the Superintendent, as may be designated by an
25 agreement between the Division and one or more additional

 

 

09500HB1496sam002 - 10 - LRB095 08420 HLH 51788 a

1 lotteries operated under the laws of another state or states.
2     g. "Division" means the Division of the State Lottery of
3 the Department of Revenue.
4     h. "Superintendent" means the Superintendent of the
5 Division of the State Lottery of the Department of Revenue.
6     i. "Concession" means the right of a Concessionaire to
7 manage or operate the Lottery pursuant to the terms of a
8 Management and Concession Agreement and this Act.
9     j. "Management and Concession Agreement" means that
10 agreement and all schedules, exhibits, and attachments
11 thereto, entered into pursuant to a competitive process and
12 pursuant to which the State may grant a license or other
13 contractual right to manage or operate the Lottery to a
14 Concessionaire, and further pursuant to which a Concessionaire
15 may receive certain Lottery ticket or share sales and related
16 proceeds in consideration of the payment of a fee or fees to
17 the State.
18     k. "Concessionaire" means a third party that manages or
19 operates the Lottery pursuant to a Management and Concession
20 Agreement then in effect.
21     l. "Conducted by the State" means the management and
22 operation of the Lottery pursuant to the terms of this Act,
23 whether directly by the State or by a Concessionaire pursuant
24 to the terms of a Management and Concession Agreement as
25 provided for in this amendatory Act of the 95th General
26 Assembly. The Concessionaire shall at all times remain

 

 

09500HB1496sam002 - 11 - LRB095 08420 HLH 51788 a

1 accountable to the State and the people of the State through a
2 comprehensive system of State regulation and enduring
3 operational oversight, which shall include, without
4 limitation, the Concessionaire's regular provision and the
5 State's ongoing review and analysis of audits, reports, and
6 financial disclosures as required by this amendatory Act of the
7 95th General Assembly.
8     m. "Transaction Documents" means all documents drafted,
9 prepared, or composed in connection with the Management and
10 Concession Agreement, including but not limited to all
11 documents reflecting or relating to any solicitation or
12 presolicitation activities the State may have undertaken
13 regarding a possible Concession.
14 (Source: P.A. 94-776, eff. 5-19-06.)
 
15     (20 ILCS 1605/4)  (from Ch. 120, par. 1154)
16     Sec. 4. Department established. The Department of the
17 Lottery is established to implement and regulate the State
18 Lottery in the manner provided in this Act.
19     In accordance with Executive Order No. 9 (2003), the
20 Division of the State Lottery is established within the
21 Department of Revenue. Unless otherwise provided by law, the
22 Division of the State Lottery shall be subject to and governed
23 by all of the laws and rules applicable to the Department.
24 (Source: P.A. 94-776, eff. 5-19-06.)
 

 

 

09500HB1496sam002 - 12 - LRB095 08420 HLH 51788 a

1     (20 ILCS 1605/5)  (from Ch. 120, par. 1155)
2     Sec. 5. Superintendent. The Division shall be under the
3 supervision and direction of a Superintendent, who shall be a
4 person qualified by training and experience to perform the
5 duties required by this Act. The Superintendent shall be
6 appointed by the Governor, by and with the advice and consent
7 of the Senate. The term of office of the Superintendent shall
8 expire on the third Monday of January in odd numbered years
9 provided that he or she shall hold office until a successor is
10 appointed and qualified.
11     Any vacancy occurring in the office of the Superintendent
12 shall be filled in the same manner as the original appointment.
13     The Superintendent shall devote his or her entire time and
14 attention to the duties of the office and shall not be engaged
15 in any other profession or occupation. The Superintendent shall
16 receive such salary as shall be provided by law.
17 (Source: P.A. 94-776, eff. 5-19-06.)
 
18     (20 ILCS 1605/6)  (from Ch. 120, par. 1156)
19     Sec. 6. Lottery Control Board; creation; appointment;
20 chairman; terms; vacancies; removal; compensation; meetings;
21 quorum. There is hereby created an independent board to be
22 known as the Lottery Control Board, consisting of 5 members,
23 all of whom shall be citizens of the United States and
24 residents of this State and shall be appointed by the Governor
25 with the advice and consent of the Senate. No more than 3 of

 

 

09500HB1496sam002 - 13 - LRB095 08420 HLH 51788 a

1 the 5 members shall be members of the same political party. A
2 chairman of the Board shall be chosen annually from the
3 membership of the Board by a majority of the members of the
4 Board at the first meeting of the Board each fiscal year.
5     Initial members shall be appointed to the Board by the
6 Governor as follows: one member to serve until July 1, 1974,
7 and until his successor is appointed and qualified; 2 members
8 to serve until July 1, 1975, and until their successors are
9 appointed and qualified; 2 members to serve until July 1, 1976,
10 and until their successors are appointed and qualified. As
11 terms of members so appointed expire, their successors shall be
12 appointed for terms to expire the first day in July 3 years
13 thereafter, and until their successors are appointed and
14 qualified.
15     Any vacancy in the Board occurring for any reason other
16 than expiration of term, shall be filled for the unexpired term
17 in the same manner as the original appointment.
18     Any member of the Board may be removed by the Governor for
19 neglect of duty, misfeasance, malfeasance, or nonfeasance in
20 office.
21     Board members shall receive as compensation for their
22 services $100 for each day they are in attendance at any
23 official board meeting, but in no event shall members receive
24 more than $1,200 per year. They shall receive no other
25 compensation for their services, but shall be reimbursed for
26 necessary traveling and other reasonable expenses incurred in

 

 

09500HB1496sam002 - 14 - LRB095 08420 HLH 51788 a

1 the performance of their official duties. Each member shall
2 make a full financial disclosure upon appointment.
3     The Board shall hold at least one meeting each quarter of
4 the fiscal year. In addition, special meetings may be called by
5 the Chairman, any 2 Board members, or the Director of the
6 Department, upon delivery of 72 hours' written notice to the
7 office of each member. All Board meetings shall be open to the
8 public pursuant to the Open Meetings Act.
9     Three members of the Board shall constitute a quorum, and 3
10 votes shall be required for any final determination by the
11 Board. The Board shall keep a complete and accurate record of
12 all its meetings.
13 (Source: P.A. 84-1128.)
 
14     (20 ILCS 1605/6.1 new)
15     Sec. 6.1. Lottery Control Board's Authorization to
16 Implement the Act and Oversee Concession. The term of each
17 appointed member of the Board who is in office on May 31, 2008
18 shall terminate at the close of business on that date or when
19 all of the new members to be initially appointed under this
20 amendatory Act of the 95th General Assembly have been appointed
21 by the Governor, whichever occurs later.
22     Beginning on June 1, 2008 or when all of the new members of
23 the Board to be initially appointed under this amendatory Act
24 of the 95th General Assembly have been appointed by the
25 Governor, whichever occurs later, the Board shall consist of 7

 

 

09500HB1496sam002 - 15 - LRB095 08420 HLH 51788 a

1 members, all of whom shall be citizens of the United States and
2 residents of this State and shall be appointed by the Governor
3 with the advice and consent of the Senate. No more than 4 of
4 the 7 members shall be members of the same political party. A
5 chairman of the Board shall be chosen annually from the
6 membership of the Board by a majority of the members of the
7 Board at the first meeting of the Board each fiscal year.
8     Members shall be appointed to the Board by the Governor as
9 follows: 2 members to serve until July 1, 2009, and until their
10 successors are appointed and qualified; 2 members to serve
11 until July 1, 2010, and until their successors are appointed
12 and qualified; 3 members to serve until July 1, 2011, and until
13 their successors are appointed and qualified. As terms of
14 members so appointed expire, their successors shall be
15 appointed for terms to expire the first day in July 3 years
16 thereafter, and until their successors are appointed and
17 qualified. Members of the Board serving prior to the effective
18 date of this amendatory Act of the 95th General Assembly shall
19 be discharged of their duties and replaced by members appointed
20 pursuant to this Section in the sequence in which those prior
21 serving members were appointed.
22     Any vacancy in the Board occurring for any reason other
23 than expiration of term shall be filled for the unexpired term
24 in the same manner as the original appointment.
25     Any member of the Board may be removed by the Governor for
26 neglect of duty, misfeasance, malfeasance, or nonfeasance in

 

 

09500HB1496sam002 - 16 - LRB095 08420 HLH 51788 a

1 office.
2     Board members shall receive as compensation for their
3 services $250 for each day they are in attendance at any
4 official board meeting, but in no event shall members receive
5 more than $3,000 per year. They shall receive no other
6 compensation for their services, but shall be reimbursed for
7 necessary traveling and other reasonable expenses incurred in
8 the performance of their official duties. All such compensation
9 and reimbursement shall be paid from proceeds of the
10 Concession.
11     The Board shall hold at least one meeting each quarter of
12 the fiscal year. In addition, special meetings may be called by
13 the chairman, any 4 Board members, or the Director of the
14 Department, upon delivery of 72 hours' written notice to each
15 member. All Board meetings shall be open to the public pursuant
16 to the Open Meetings Act.
17     Four members of the Board shall constitute a quorum, and 4
18 votes shall be required for any final determination by the
19 Board. The Board shall keep a complete and accurate record of
20 all its meetings.
21     The Board shall have general responsibility for the
22 implementation of this Act and the oversight and implementation
23 of any Management and Concession Agreement. The Board shall
24 have jurisdiction and oversight over all Lottery and Concession
25 operations governed by this Act and shall have all powers
26 necessary and proper to fully and effectively execute the

 

 

09500HB1496sam002 - 17 - LRB095 08420 HLH 51788 a

1 provisions of this Act. Its duties include, without limitation,
2 the following:
3         (1) to conduct all hearings pertaining to rules and
4     regulations promulgated under this Act;
5         (2) to promulgate such rules and regulations as in its
6     judgment may be necessary to protect or enhance the
7     credibility and integrity of the Lottery and enforce the
8     provisions of the Management and Concession Agreement
9     authorized by this Act and the regulatory process under
10     this Act;
11         (3) to be present through its inspectors and agents any
12     time Lottery operations are conducted pursuant to this Act
13     or the Management and Concession Agreement for the purpose
14     of determining compliance therewith, receiving complaints
15     from the public, and conducting such other investigations
16     into the conduct of Lottery games and operations and the
17     maintenance of all Lottery equipment as from time to time
18     the Board may deem necessary and proper;
19         (4) to implement and administer the Concession and
20     Management Agreement, including, without limitation, the
21     supervision and administration of the operation of the
22     Lottery in accordance with this Act, the rules and
23     regulations of the Board adopted hereunder, and the terms
24     of the Management and Concession Agreement;
25         (5) to investigate parties providing Concession and
26     Lottery-related services;

 

 

09500HB1496sam002 - 18 - LRB095 08420 HLH 51788 a

1         (6) to review all contracts entered into by the
2     Concessionaire of the Management and Concession Agreement
3     for the purpose of implementing and executing the
4     Management and Concession Agreement; and to review and
5     approve all contracts entered into by the Concessionaire,
6     directly or indirectly, for the purpose of implementing and
7     executing the Management and Concession Agreement, with an
8     aggregate amount of $100,000 or more or for a term to
9     exceed 365 days;
10         (7) to have jurisdiction and supervision over all
11     Lottery and Concession operations;
12         (8) to promulgate rules and regulations for the purpose
13     of administering the provisions of this Act and the
14     Management and Concession Agreement and to prescribe
15     rules, regulations, and conditions under which the Lottery
16     shall be conducted; those rules and regulations are to
17     provide for the prevention of practices detrimental to the
18     public interest and for the best interests of citizens of
19     the State, including rules and regulations regarding
20     inspection;
21         (9) to enter the office, facilities, or other places of
22     business of a Concessionaire, where evidence of the
23     compliance or noncompliance with the provisions of this Act
24     or the Management and Concession Agreement is likely to be
25     found;
26         (10) to investigate alleged violations of this Act or

 

 

09500HB1496sam002 - 19 - LRB095 08420 HLH 51788 a

1     the rules of the Board and to take appropriate disciplinary
2     action against a Concessionaire and its contractors and
3     licensees for a violation, or institute appropriate legal
4     action for enforcement, or both;
5         (11) to ensure that any Concessionaire maintains
6     appropriate standards for Lottery ticket vendors;
7         (12) to require that records, including financial or
8     other statements of any Concessionaire, manager, or
9     operator under this Act, shall be kept in such manner as
10     prescribed by the Board and that any such Concessionaire,
11     manager, or operator regularly submit to the Board a
12     balance sheet and profit and loss statement, list of the
13     stockholders or other persons having a beneficial interest
14     in such amounts as may be determined by the Board, and any
15     other information the Board deems necessary in order to
16     effectively administer this Act and all rules,
17     regulations, orders, and final decisions promulgated under
18     this Act;
19         (13) to conduct hearings, issue subpoenas for the
20     attendance of witnesses and subpoenas duces tecum for the
21     production of books, records, and other pertinent
22     documents in accordance with the Illinois Administrative
23     Procedure Act, and to administer oaths and affirmations to
24     the witnesses, when, in the judgment of the Board, it is
25     necessary to administer or enforce this Act or the Board
26     rules;

 

 

09500HB1496sam002 - 20 - LRB095 08420 HLH 51788 a

1         (14) to hire employees to gather information, conduct
2     investigations, and carry out any other tasks contemplated
3     under this Act;
4         (15) to delegate the execution of any of its powers
5     under this Act for the purpose of administering and
6     enforcing this Act and its rules and regulations; and
7         (16) to take any other action as may be reasonable or
8     appropriate to enforce this Act and its rules and
9     regulations.
10     The Board may seek and shall receive the cooperation of the
11 Department of State Police in conducting background
12 investigations of parties and in fulfilling its
13 responsibilities under this Section. Costs incurred by the
14 Department of State Police as a result of that cooperation
15 shall be paid by the Board in conformance with the requirements
16 of Section 2605-400 of the Department of State Police Law.
17     In the event that the State shall enter into a Management
18 and Concession Agreement, the Board may instruct the
19 Superintendent, on behalf of the Concessionaire, to enter into
20 an agreement or agreements with the management of state
21 lotteries operated pursuant to the laws of other states for the
22 purpose of creating and operating a multi-state lottery game
23 wherein a separate and distinct prize pool would be combined to
24 award larger prizes to the public than could be offered by the
25 several state lotteries individually. In the event that the
26 State shall enter into a Management and Concession Agreement,

 

 

09500HB1496sam002 - 21 - LRB095 08420 HLH 51788 a

1 no tickets or shares offered in connection with a multi-state
2 lottery game shall be sold within the State, except those
3 offered by the Concessionaire pursuant to the terms of the
4 Management and Concession Agreement and this amendatory Act of
5 the 95th General Assembly. No such agreement shall purport to
6 pledge the full faith and credit of the State of Illinois. No
7 multi-state game prize awarded to a nonresident of Illinois,
8 with respect to a ticket or share purchased in a state other
9 than the State of Illinois, shall be deemed to be a prize
10 awarded under this Act for the purpose of taxation under the
11 Illinois Income Tax Act.
 
12     (20 ILCS 1605/6.2 new)
13     Sec. 6.2. Ethics provisions.
14     (a) Conflict of interest. Board members and employees may
15 not engage in communications or any activity that may cause or
16 have the appearance of causing a conflict of interest. A
17 conflict of interest exists if a situation influences or
18 creates the appearance that it may influence judgment or
19 performance of regulatory duties and responsibilities. This
20 prohibition shall extend to any act identified by Board action
21 that, in the judgment of the Board, could represent the
22 potential for or the appearance of a conflict of interest.
23     (b) No State constitutional officer or member of the
24 General Assembly nor an entity from which the State
25 constitutional officer or member of the General Assembly

 

 

09500HB1496sam002 - 22 - LRB095 08420 HLH 51788 a

1 receives compensation may own a direct interest in the
2 Concessionaire or have a financial interest or relationship
3 with any entity that owns or is an affiliate of the
4 Concessionaire during the current term or for a period of 5
5 years after the State constitutional officer or member of the
6 General Assembly leaves office. The holding or acquisition of
7 an interest in such entities through indirect means, such as
8 through a mutual fund, shall not be prohibited. For purposes of
9 this subsection (b), "State constitutional officer or member of
10 the General Assembly" includes the spouse or minor child of the
11 State constitutional officer or member of the General Assembly.
12 A violation of this subsection (b) is a Class 4 felony.
13     (c) Financial interest. Board members and employees may not
14 have a financial interest, directly or indirectly, in his or
15 her own name or in the name of any other person, partnership,
16 association, trust, corporation, or other entity, in any
17 contract or subcontract for the performance of any work for the
18 Board or for the Concessionaire. This prohibition shall extend
19 to the holding or acquisition of an interest in any entity
20 identified by Board action that, in the judgment of the Board,
21 could represent the potential for or the appearance of a
22 financial interest. The holding or acquisition of an interest
23 in such entities through an indirect means, such as through a
24 mutual fund, shall not be prohibited.
25     (d) Outside employment. A Board member or an employee may
26 not, within a period of 5 years immediately after termination

 

 

09500HB1496sam002 - 23 - LRB095 08420 HLH 51788 a

1 of employment, knowingly accept employment or receive
2 compensation or fees for services from a person or entity, or
3 its parent or affiliate, that has engaged in business with the
4 Board that resulted in contracts with an aggregate value of at
5 least $25,000 or if that Board member, employee, or the
6 Director has made a decision that directly applied to the
7 person or entity, or its parent or affiliate. Board members and
8 employees shall not hold or pursue any employment, office,
9 position, business, or occupation that conflicts with his or
10 her official duties.
11     (e) Gift ban. Board members and employees may not accept
12 any gift, gratuity, service, compensation, travel, lodging, or
13 thing of value, with the exception of unsolicited items of an
14 incidental nature, from any person, corporation or entity doing
15 business with the Board.
16     (f) Abuse of Position. A Board member or employee shall not
17 use or attempt to use his or her official position to secure,
18 or attempt to secure, any privilege, advantage, favor, or
19 influence for himself or herself or others. No Board member or
20 employee may attempt, in any way, to influence any person or
21 corporation doing business with the Board or any officer,
22 agent, or employee thereof to hire or contract with any person
23 or corporation for any compensated work.
24     (g) Political Activity. Board members and employees shall
25 not engage in any political activity. For the purposes of this
26 subsection, "political activity" means any activity in support

 

 

09500HB1496sam002 - 24 - LRB095 08420 HLH 51788 a

1 of or in connection with any campaign for State or local
2 elective office or any political organization, but does not
3 include activities (i) relating to the support or opposition of
4 any executive, legislative, or administrative action (as those
5 terms are defined in Section 2 of the Lobbyist Registration
6 Act), (ii) relating to collective bargaining, or (iii) that are
7 otherwise in furtherance of the person's official State duties
8 or governmental and public service functions.
9     (h) A spouse, child, or parent of a Board member or an
10 employee may not:
11         (1) Have a financial interest, directly or indirectly,
12     in his or her own name or in the name of any other person,
13     partnership, association, trust, corporation, or other
14     entity, in any contract or subcontract for the performance
15     of any work for the Board or the Concessionaire. This
16     prohibition shall extend to the holding or acquisition of
17     an interest in any entity identified by Board action that,
18     in the judgment of the Board, could represent the potential
19     for or the appearance of a conflict of interest. The
20     holding or acquisition of an interest in such entities
21     through an indirect means, such as through a mutual fund,
22     shall not be prohibited.
23         (2) Accept any gift, gratuity, service, compensation,
24     travel, lodging, or thing of value, with the exception of
25     unsolicited items of an incidental nature, from any person,
26     corporation or entity doing business with the Board.

 

 

09500HB1496sam002 - 25 - LRB095 08420 HLH 51788 a

1         (3) Within a period of 2 years immediately after
2     termination of employment, knowingly accept employment or
3     receive compensation or fees for services from a person or
4     entity, or its parent or affiliate, that has engaged in
5     business with the Board that resulted in contracts with an
6     aggregate value of at least $25,000 or if the Board has
7     made a decision that directly applied to the person or
8     entity, or its parent or affiliate.
9     (i) Any Board member or employee or spouse, child, or
10 parent of a Board member or employee who violates any provision
11 of this Section is guilty of a Class 4 felony.
 
12     (20 ILCS 1605/7.1)  (from Ch. 120, par. 1157.1)
13     Sec. 7.1. Rules and regulations. The Department may shall
14 promulgate such rules and regulations governing the
15 establishment and operation of a State lottery as it deems
16 necessary to carry out the purposes of this Act. Such rules and
17 regulations shall be subject to the provisions of The Illinois
18 Administrative Procedure Act. If the State enters into a
19 Management and Concession Agreement pursuant to which a
20 Concessionaire is authorized to manage or operate the Lottery,
21 the Board shall assume the Department's authorities and
22 discharge the Department's duties under this Section and
23 Section 7.2 of this Act. The Division may shall issue written
24 game rules, play instructions, directives, operations manuals,
25 brochures, or any other publications necessary to conduct

 

 

09500HB1496sam002 - 26 - LRB095 08420 HLH 51788 a

1 specific games, as authorized by rule by the Department. Any
2 written game rules, play instructions, directives, operations
3 manuals, brochures, or other game publications issued by the
4 Division that relate to a specific lottery game shall be
5 maintained as a public record in the Division's principal
6 office, and made available for public inspection and copying
7 but shall be exempt from the rulemaking procedures of the
8 Illinois Administrative Procedure Act. However, when such
9 written materials contain any policy of general applicability,
10 the Division shall formulate and adopt such policy as a rule in
11 accordance with the provisions of the Illinois Administrative
12 Procedure Act. In addition, the Division shall publish each
13 January in the Illinois Register a list of all game-specific
14 rules, play instructions, directives, operations manuals,
15 brochures, or other game-specific publications issued by the
16 Division during the previous year, if any, and instructions
17 concerning how the public may obtain copies of these materials
18 from the Division. In the event that the State enters into a
19 Management and Concession Agreement, the Concessionaire shall
20 be permitted to offer lottery games in accordance with the
21 provisions of this Act, the rules and regulations of the Board
22 adopted hereunder, and the terms of the Management and
23 Concession Agreement.
24 (Source: P.A. 94-776, eff. 5-19-06.)
 
25     (20 ILCS 1605/7.2)  (from Ch. 120, par. 1157.2)

 

 

09500HB1496sam002 - 27 - LRB095 08420 HLH 51788 a

1     Sec. 7.2. Matters included in rules and regulations. The
2 rules and regulations of the Department or, if the State enters
3 into a Management and Concession Agreement pursuant to which a
4 Concessionaire is authorized to manage or operate the lottery,
5 the Board may include, but shall not be limited to, the
6 following:
7     (1) The types of lotteries to be conducted. ;
8     (2) The price, or prices, of tickets or shares in the
9 lottery. ;
10     (3) The numbers and sizes of the prizes on the winning
11 tickets or shares. ;
12     (4) The manner of selecting the winning tickets or shares. ;
13     (5) The manner of payment of prizes to the holders of
14 winning tickets or shares. ;
15     (6) The frequency of the drawing or selections of winning
16 tickets or shares, without limitation. ;
17     (7) Without limit to number, the type or types of locations
18 at which tickets or shares may be sold. ;
19     (8) The method to be used in selling tickets or shares. ;
20     (9) The manner and amount of compensation, if any, to be
21 paid licensed sales agents necessary to provide for the
22 adequate availability of tickets or shares to prospective
23 buyers and for the convenience of the public. ;
24     (10) (Blank). The apportionment of the total revenues
25 accruing from the sale of lottery tickets or shares and from
26 all other sources among (i) the payment of prizes to the

 

 

09500HB1496sam002 - 28 - LRB095 08420 HLH 51788 a

1 holders of winning tickets or shares, (ii) the payment of costs
2 incurred in the operation and administration of the lottery,
3 including the expenses of the Department and the costs
4 resulting from any contract or contracts entered into for
5 promotional, advertising or operational services or for the
6 purchase or lease of lottery equipment and materials, and (iii)
7 for monthly transfers to the Common School Fund. The net
8 revenues accruing from the sale of lottery tickets shall be
9 determined by deducting from total revenues the payments
10 required by paragraphs (i) and (ii) of this subsection.
11     (11) Such other matters necessary or desirable for the
12 efficient and economical operation and administration of the
13 lottery or for the implementation and oversight of any
14 Management and Concession Agreement pursuant to which a
15 Concessionaire is authorized to manage or operate the Lottery
16 and for the convenience of the purchasers of tickets or shares
17 and the holders of winning tickets or shares.
18     Any rules and regulations of the Department with respect to
19 monthly transfers to the Common School Fund are subject to
20 Section 21.2.
21 (Source: P.A. 84-1128.)
 
22     (20 ILCS 1605/7.3)  (from Ch. 120, par. 1157.3)
23     Sec. 7.3. Hearings on violations; other hearings. The Board
24 shall designate Hearing Officers who shall conduct hearings
25 upon complaints charging violations of this Act or of

 

 

09500HB1496sam002 - 29 - LRB095 08420 HLH 51788 a

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

 

 

09500HB1496sam002 - 30 - LRB095 08420 HLH 51788 a

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

 

 

09500HB1496sam002 - 31 - LRB095 08420 HLH 51788 a

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

 

 

09500HB1496sam002 - 32 - LRB095 08420 HLH 51788 a

1 Concession Agreement pursuant to which a Concessionaire is
2 authorized to manage or operate the Lottery and the
3 Concessionaire has the right to undertake marketing and
4 advertising activities, the Concessionaire shall submit, for
5 the Board's review of content and determination of compliance
6 with this Section, all marketing and advertising materials
7 pursuant to such rules and policies as the Board may promulgate
8 from time to time. If the Board finds that action proposed or
9 taken by the Concessionaire conflicts with those rules or
10 policies, the Board shall have the authority to direct the
11 Concessionaire to cease or refrain from taking that action.
12 (Source: P.A. 85-183.)
 
13     (20 ILCS 1605/7.11)  (from Ch. 120, par. 1157.11)
14     Sec. 7.11. (Repealed.) The Division may establish and
15 collect nominal charges for promotional products ("premiums")
16 and other promotional materials produced or acquired by the
17 Division as part of its advertising and promotion activities.
18 Such premiums or other promotional materials may be sold to
19 individuals, government agencies and not-for-profit
20 organizations, but not to for-profit enterprises for the
21 purpose of resale. Other State agencies shall be charged no
22 more than the cost to the Division of the premium or
23 promotional material. All proceeds from the sale of premiums or
24 promotional materials shall be deposited in the State Lottery
25 Fund in the State Treasury.

 

 

09500HB1496sam002 - 33 - LRB095 08420 HLH 51788 a

1 (Source: P.A. 94-776, eff. 5-19-06.)
 
2     (20 ILCS 1605/8)  (from Ch. 120, par. 1158)
3     Sec. 8. Compelling appearance of witnesses and production
4 of documents; oaths and affirmations; dispositions. In
5 connection with any hearing held pursuant to Section 6.1 or 7.3
6 of this Act, the Board, or any Hearing Officer appointed by the
7 Board, may subpoena and compel the appearance of witnesses and
8 production of documents, papers, books, records and other
9 evidence before it in any matter over which it has
10 jurisdiction, control or supervision. The Board, or any
11 appointed Hearing Officer, shall have the power to administer
12 oaths and affirmations to persons whose testimony is required.
13 If a person subpoenaed to attend in any such proceeding or
14 hearing fails to obey the command of the subpoena without
15 reasonable cause, or if a person in attendance in any such
16 proceeding or hearing refuses, without lawful cause, to be
17 examined or to answer a legal or pertinent question or to
18 exhibit any books, account, record or other document when
19 ordered so to do by the Board or its Hearing Officer, the Board
20 or Hearing Officer may apply to the circuit court, upon proof
21 by affidavit of the facts, for an order returnable in not less
22 than 2 nor more than 10 days, or as the court may prescribe,
23 directing such person to show cause before the court why he or
24 she should not comply with such subpoena or such order.
25     Upon return of the order, the court shall examine such

 

 

09500HB1496sam002 - 34 - LRB095 08420 HLH 51788 a

1 person under oath, and if the court determines, after giving
2 such person an opportunity to be heard, that he or she refused
3 without legal excuse to comply with such subpoena or such order
4 of the Board or Hearing Officer, the court may order such
5 person to comply therewith immediately and any failure to obey
6 the order of the court may be punished as a contempt of court.
7     All subpoenas and subpoenas duces tecum issued under the
8 provisions of this Act may be served by any person of lawful
9 age. The fees of witnesses for attendance and travel shall be
10 the same as the fees of witnesses before the circuit courts of
11 this State. When the witness is subpoenaed at the instance of
12 the Department or any officer or employee thereof, such fees
13 shall be paid in the same manner as other expenses of the
14 Department. When the witness is subpoenaed at the instance of
15 any other party to any such proceeding, the Department may
16 require that the cost of service of the subpoena or subpoena
17 duces tecum and the fee of the witness be borne by the party at
18 whose instance the witness is summoned. In such case, and on
19 motion of the Department, the Board or its Hearing Officer may
20 require a deposit to cover the cost of such service and witness
21 fees.
22     The Department, or any officer or employee thereof, or any
23 other party to a hearing before the Board or its Hearing
24 Officers, may cause the depositions of witnesses within the
25 State to be taken in the manner prescribed by law for like
26 depositions in civil actions in courts of this State, and to

 

 

09500HB1496sam002 - 35 - LRB095 08420 HLH 51788 a

1 that end compel the attendance of witnesses and the production
2 of books, papers, records or memoranda.
3 (Source: P.A. 85-1224.)
 
4     (20 ILCS 1605/8.1)  (from Ch. 120, par. 1158.1)
5     Sec. 8.1. Contracts; competitive negotiation. Contracts
6 for State Lottery tickets or shares or for other State Lottery
7 game related services shall be obtained through the utilization
8 of competitive negotiation procedures whenever practicable.
9 (Source: P.A. 84-268.)
 
10     (20 ILCS 1605/9)  (from Ch. 120, par. 1159)
11     Sec. 9. Duties of Superintendent. The Superintendent, as
12 administrative head of the Division, shall direct and supervise
13 all its administrative and technical activities and shall
14 report to the Director. In addition to the duties imposed upon
15 him elsewhere in this Act, it shall be the Superintendent's
16 duty:
17     a. To supervise and administer the operation of the lottery
18 in accordance with the provisions of this Act or such rules and
19 regulations of the Department adopted thereunder.
20     b. To attend meetings of the Board or to appoint a designee
21 to attend in his stead.
22     c. To employ and direct such personnel in accord with the
23 Personnel Code, as may be necessary to carry out the purposes
24 of this Act. The Superintendent may, subject to the approval of

 

 

09500HB1496sam002 - 36 - LRB095 08420 HLH 51788 a

1 the Director, use the services, personnel, or facilities of the
2 Department. In addition, the Superintendent may by agreement
3 secure such services as he or she may deem necessary from any
4 other department, agency, or unit of the State government, and
5 may employ and compensate such consultants and technical
6 assistants as may be required and is otherwise permitted by
7 law.
8     d. To license, in accordance with the provisions of
9 Sections 10 and 10.1 of this Act and the rules and regulations
10 of the Department adopted thereunder, or to ensure the
11 retention, pursuant to the terms of a Management and Concession
12 Agreement, as agents to sell lottery tickets such persons as in
13 his opinion will best serve the public convenience and promote
14 the sale of tickets or shares. The Superintendent may require a
15 bond from every licensed agent, in such amount as provided in
16 the rules and regulations of the Department. Every licensed
17 agent shall prominently display his license, or a copy thereof,
18 as provided in the rules and regulations of the Department.
19     e. To suspend or revoke any license issued pursuant to this
20 Act or the rules and regulations promulgated by the Department
21 thereunder.
22     f. To confer regularly as necessary or desirable and not
23 less than once every month with the Lottery Control Board on
24 the operation and administration of the Lottery; to make
25 available for inspection by the Board or any member of the
26 Board, upon request, all books, records, files, and other

 

 

09500HB1496sam002 - 37 - LRB095 08420 HLH 51788 a

1 information and documents of his office; to advise the Board
2 and recommend such rules and regulations and such other matters
3 as he deems necessary and advisable to improve the operation
4 and administration of the lottery or the implementation and
5 oversight of a Management and Concession Agreement.
6     g. To enter into contracts for the operation of the
7 lottery, or any part thereof, and into contracts for the
8 promotion of the lottery on behalf of the Department with any
9 person, firm or corporation, to perform any of the functions
10 provided for in this Act or the rules and regulations
11 promulgated thereunder. The Department shall not expend State
12 funds on a contractual basis for such functions unless those
13 functions and expenditures are expressly authorized by the
14 General Assembly.
15     h. To enter into a Management and Concession Agreement that
16 authorizes a Concessionaire to enter into an agreement or
17 agreements with the management of state lotteries operated
18 pursuant to the laws of other states for the purpose of
19 creating and operating a multi-state lottery game wherein a
20 separate and distinct prize pool would be combined to award
21 larger prizes to the public than could be offered by the
22 several state lotteries, individually or, if the State enters
23 into a Management and Concession Agreement pursuant to which a
24 Concessionaire is authorized to manage or operate the Lottery,
25 to authorize the Concessionaire to take such action. No tickets
26 or shares offered in connection with a multi-state lottery game

 

 

09500HB1496sam002 - 38 - LRB095 08420 HLH 51788 a

1 shall be sold within the State of Illinois, except those
2 offered by and through the Department or, if the State enters
3 into a Management and Concession Agreement pursuant to which a
4 Concessionaire is authorized to manage or operate the Lottery,
5 by the Concessionaire pursuant to the terms of the Management
6 and Concession Agreement and this amendatory Act of the 95th
7 General Assembly. No such agreement shall purport to pledge the
8 full faith and credit of the State of Illinois, nor shall the
9 Department expend State funds on a contractual basis in
10 connection with any such game unless such expenditures are
11 expressly authorized by the General Assembly, provided,
12 however, that in the event of error or omission by the Illinois
13 State Lottery in the conduct of the game, as determined by the
14 multi-state game directors, except as may be and to the extent
15 modified by the terms of a Management and Concession Agreement,
16 the Department shall be authorized to pay a prize winner or
17 winners the lesser of a disputed prize or $1,000,000, any such
18 payment to be made solely from funds appropriated for game
19 prize purposes. Except as may be and to the extent modified by
20 the terms of a Management and Concession Agreement, the The
21 Department shall be authorized to share in the ordinary
22 operating expenses of any such multi-state lottery game, from
23 funds appropriated by the General Assembly, and in the event
24 the multi-state game control offices are physically located
25 within the State of Illinois, the Department is authorized to
26 advance start-up operating costs not to exceed $150,000,

 

 

09500HB1496sam002 - 39 - LRB095 08420 HLH 51788 a

1 subject to proportionate reimbursement of such costs by the
2 other participating state lotteries. The Department shall be
3 authorized to share proportionately in the costs of
4 establishing a liability reserve fund from funds appropriated
5 by the General Assembly. The Department is authorized to
6 transfer prize award funds attributable to Illinois sales of
7 multi-state lottery game tickets to the multi-state control
8 office, or its designated depository, for deposit to such game
9 pool account or accounts as may be established by the
10 multi-state game directors, the records of which account or
11 accounts shall be available at all times for inspection in an
12 audit by the Auditor General of Illinois and any other auditors
13 pursuant to the laws of the State of Illinois. No multi-state
14 game prize awarded to a nonresident of Illinois, with respect
15 to a ticket or share purchased in a state other than the State
16 of Illinois, shall be deemed to be a prize awarded under this
17 Act for the purpose of taxation under the Illinois Income Tax
18 Act. All of the net revenues accruing from the sale of
19 multi-state lottery tickets or shares shall be transferred into
20 the Common School Fund pursuant to Section 7.2. The Department
21 shall promulgate such rules as may be appropriate to implement
22 the provisions of this Section.
23     i. To make a continuous study and investigation of (1) the
24 operation and the administration of similar laws which may be
25 in effect in other states or countries, (2) any literature on
26 the subject which from time to time may be published or

 

 

09500HB1496sam002 - 40 - LRB095 08420 HLH 51788 a

1 available, (3) any Federal laws which may affect the operation
2 of the lottery, and (4) the reaction of Illinois citizens to
3 existing and potential features of the lottery with a view to
4 recommending or effecting changes that will tend to serve the
5 purposes of this Act.
6     j. To report monthly to the State Treasurer and the Lottery
7 Control Board a full and complete statement of lottery
8 revenues, prize disbursements and other expenses for each
9 quarter month and the amounts to be transferred to the Common
10 School Fund pursuant to Section 7.2 or such other funds as are
11 otherwise authorized by Section 21.2 of this Act, and to make
12 an annual report, which shall include a full and complete
13 statement of lottery or concession revenues, prize
14 disbursements and other expenses, to the Governor and the
15 Board. All reports required by this subsection shall be public
16 and copies of all such reports shall be sent to the Speaker of
17 the House, the President of the Senate, and the minority
18 leaders of both houses.
19     k. In the event that the State shall enter into a
20 Management and Concession Agreement, it shall be the duty of
21 the Superintendent, together with the Board, to supervise and
22 administer the operations of the lottery in accordance with the
23 provisions of this Act, the rules and regulations of the Board
24 adopted hereunder, and the terms of the Management and
25 Concession Agreement.
26 (Source: P.A. 94-776, eff. 5-19-06.)
 

 

 

09500HB1496sam002 - 41 - LRB095 08420 HLH 51788 a

1     (20 ILCS 1605/10)  (from Ch. 120, par. 1160)
2     Sec. 10. Licensing of agents to sell lottery tickets or
3 shares. The Division, upon application therefor on forms
4 prescribed by the Division, and upon a determination by the
5 Division that the applicant meets all of the qualifications
6 specified in this Act, shall issue a license as an agent to
7 sell lottery tickets or shares. No license as an agent to sell
8 lottery tickets or shares shall be issued to any person to
9 engage in business exclusively as a lottery sales agent.
10     Before issuing such license the Superintendent shall
11 consider (a) the financial responsibility and security of the
12 person and his business or activity, (b) the accessibility of
13 his place of business or activity to the public, (c) the
14 sufficiency of existing licenses to serve the public
15 convenience, (d) the volume of expected sales, and (e) such
16 other factors as he or she may deem appropriate.
17     Until September 1, 1987, the provisions of Sections 2a, 4,
18 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 6, 6a, 6b, 6c, 8, 9,
19 10, 12 and 13.5 of the Retailers' Occupation Tax Act which are
20 not inconsistent with this Act shall apply to the subject
21 matter of this Act to the same extent as if such provisions
22 were included in this Act. For purposes of this Act, references
23 in such incorporated Sections of the Retailers' Occupation Tax
24 Act to retailers, sellers or persons engaged in the business of
25 selling tangible personal property mean persons engaged in

 

 

09500HB1496sam002 - 42 - LRB095 08420 HLH 51788 a

1 selling lottery tickets or shares; references in such
2 incorporated Sections to sales of tangible personal property
3 mean the selling of lottery tickets or shares; and references
4 in such incorporated Sections to certificates of registration
5 mean licenses issued under this Act. The provisions of the
6 Retailers' Occupation Tax Act as heretofore applied to the
7 subject matter of this Act shall not apply with respect to
8 tickets sold by or delivered to lottery sales agents on and
9 after September 1, 1987, but such provisions shall continue to
10 apply with respect to transactions involving the sale and
11 delivery of tickets prior to September 1, 1987.
12     All licenses issued by the Division under this Act shall be
13 valid for a period not to exceed 2 years after issuance unless
14 sooner revoked, canceled or suspended as in this Act provided.
15 No license issued under this Act shall be transferable or
16 assignable. Such license shall be conspicuously displayed in
17 the place of business conducted by the licensee in Illinois
18 where lottery tickets or shares are to be sold under such
19 license.
20     For purposes of this Section, the term "person" shall be
21 construed to mean and include an individual, association,
22 partnership, corporation, club, trust, estate, society,
23 company, joint stock company, receiver, trustee, referee, any
24 other person acting in a fiduciary or representative capacity
25 who is appointed by a court, or any combination of individuals.
26 "Person" includes any department, commission, agency or

 

 

09500HB1496sam002 - 43 - LRB095 08420 HLH 51788 a

1 instrumentality of the State, including any county, city,
2 village, or township and any agency or instrumentality thereof.
3     If the State enters into a Management and Concession
4 Agreement pursuant to which the State authorizes a
5 Concessionaire to retain agents to distribute lottery tickets,
6 the Division shall cease issuing licenses to agents to sell
7 lottery tickets or shares during the term of the Management and
8 Concession Agreement. In retaining such agents, the
9 Concessionaire shall apply appropriate criteria in determining
10 suitability of those agents, including without limitation,
11 criteria establishing the ineligibility for a license as set
12 forth in Section 10.1 of this Act. Further, the Concessionaire
13 shall provide to the Department, not less than monthly, a list
14 of all agents the Concessionaire has engaged to distribute
15 lottery tickets or shares, which statement shall include a
16 certification that all such agents comply with the eligibility
17 standards set forth in this Act.
18 (Source: P.A. 94-776, eff. 5-19-06.)
 
19     (20 ILCS 1605/10.1)  (from Ch. 120, par. 1160.1)
20     Sec. 10.1. Persons ineligible for licenses. The following
21 are ineligible for any license under this Act:
22     (a) any person who has been convicted of a felony;
23     (b) any person who is or has been a professional gambler or
24 gambling promoter, except when the person acted in such a
25 capacity pursuant to and in compliance with all applicable law;

 

 

09500HB1496sam002 - 44 - LRB095 08420 HLH 51788 a

1     (c) any person who has engaged in bookmaking or other forms
2 of illegal gambling;
3     (d) any person who is not of good character and reputation
4 in the community in which he resides;
5     (e) any person who has been found guilty of any fraud or
6 misrepresentation in any connection;
7     (f) any firm or corporation in which a person defined in
8 (a), (b), (c), (d) or (e) has a proprietary, equitable or
9 credit interest of 5% or more.
10     (g) any organization in which a person defined in (a), (b),
11 (c), (d) or (e) is an officer, director, or managing agent,
12 whether compensated or not;
13     (h) any organization in which a person defined in (a), (b),
14 (c), (d), or (e) is to participate in the management or sales
15 of lottery tickets or shares.
16     However, with respect to persons defined in (a), the
17 Department may grant any such person a license under this Act
18 when:
19     1) at least 10 years have elapsed since the date when the
20 sentence for the most recent such conviction was satisfactorily
21 completed;
22     2) the applicant has no history of criminal activity
23 subsequent to such conviction;
24     3) the applicant has complied with all conditions of
25 probation, conditional discharge, supervision, parole or
26 mandatory supervised release; and

 

 

09500HB1496sam002 - 45 - LRB095 08420 HLH 51788 a

1     4) the applicant presents at least 3 letters of
2 recommendation from responsible citizens in his community who
3 personally can attest that the character and attitude of the
4 applicant indicate that he is unlikely to commit another crime.
5     The Division may revoke, without notice or a hearing, the
6 license of any agent who violates this Act or any rule or
7 regulation promulgated pursuant to this Act. If the State
8 enters into a Management and Concession Agreement pursuant to
9 which the State authorizes a Concessionaire to engage any sales
10 agent, the Division shall retain the power to revoke any such
11 agency pursuant to the provisions of this Act. However, if the
12 Division does revoke a license without notice and an
13 opportunity for a hearing, the Division shall, by appropriate
14 notice, afford the person whose license has been revoked an
15 opportunity for a hearing within 30 days after the revocation
16 order has been issued. As a result of any such hearing, the
17 Division may confirm its action in revoking the license, or it
18 may order the restoration of such license.
19 (Source: P.A. 94-776, eff. 5-19-06.)
 
20     (20 ILCS 1605/10.1a)  (from Ch. 120, par. 1160.1a)
21     Sec. 10.1a. Failure to satisfy tax Act requirements. In
22 addition to other grounds specified in this Act, the Division
23 shall refuse to issue and shall suspend the license of any
24 lottery sales agency who fails to file a return, or to pay the
25 tax, penalty or interest shown in a filed return, or to pay any

 

 

09500HB1496sam002 - 46 - LRB095 08420 HLH 51788 a

1 final assessment of tax, penalty or interest, as required by
2 any tax Act administered by the Department, until such time as
3 the requirements of any such tax Act are satisfied, unless the
4 agency is contesting, in accordance with the procedures
5 established by the appropriate revenue Act, its liability for
6 the tax or the amount of tax. If the State enters into a
7 Management and Concession Agreement pursuant to which the State
8 authorizes a Concessionaire to engage any sales agent, the
9 Division may direct the Concessionaire to refrain from engaging
10 or to suspend the engagement of any party acting or seeking to
11 act as a sales agent. The Division shall affirmatively verify
12 the tax status of every sales agency before issuing or renewing
13 a license, except that, if the State enters into a Management
14 and Concession Agreement pursuant to which the State authorizes
15 a Concessionaire to engage any sales agent, the Division shall
16 verify the tax status of each agent from the list of agents
17 provided by the Concessionaire pursuant to Section 10 of this
18 Act. For purposes of this Section, a sales agency shall not be
19 considered delinquent in the payment of a tax if the agency (a)
20 has entered into an agreement with the Department for the
21 payment of all such taxes that are due and (b) is in compliance
22 with the agreement.
23 (Source: P.A. 94-776, eff. 5-19-06.)
 
24     (20 ILCS 1605/10.2)  (from Ch. 120, par. 1160.2)
25     Sec. 10.2. Application and other fees. Each application

 

 

09500HB1496sam002 - 47 - LRB095 08420 HLH 51788 a

1 for a new lottery license must be accompanied by a one-time
2 application fee of $50; the Division, however, may waive the
3 fee for licenses of limited duration as provided by Department
4 rule. Each application for renewal of a lottery license must be
5 accompanied by a renewal fee of $25. Each lottery licensee
6 granted on-line status pursuant to the Department's rules must
7 pay a fee of $10 per week as partial reimbursement for
8 telecommunications charges incurred by the Department in
9 providing access to the lottery's on-line gaming system. The
10 Department, by rule, may increase or decrease the amount of
11 these fees. No Concessionaire that may retain sales agents for
12 the Lottery pursuant to the terms of a Management and
13 Concession Agreement may assess any fee pursuant this Section.
14 (Source: P.A. 93-840, eff. 7-30-04; 94-776, eff. 5-19-06.)
 
15     (20 ILCS 1605/10.3)  (from Ch. 120, par. 1160.3)
16     Sec. 10.3. Proceeds received by sales agent. All proceeds
17 from the sale of lottery tickets or shares received by a person
18 in the capacity of a sales agent shall constitute a trust fund
19 until paid to the Department either directly, or through the
20 Department's authorized collection representative. Proceeds
21 shall include unsold instant tickets received by a sales agent
22 and cash proceeds of sale of any lottery products, net of
23 allowable sales commissions and credit for lottery prizes paid
24 to winners by sales agents. Sales proceeds and unsold instant
25 tickets shall be delivered to the Department or its authorized

 

 

09500HB1496sam002 - 48 - LRB095 08420 HLH 51788 a

1 collection representative upon demand. Sales agents shall be
2 personally liable for all proceeds which shall be kept separate
3 and apart from all other funds and assets and shall not be
4 commingled with any other funds or assets. In the case of a
5 sales agent who is not an individual, personal liability shall
6 attach to the owners and officers of the sales agent. The
7 Department shall have a right to file a lien upon all real and
8 personal property of any person who is personally liable under
9 this Section for any unpaid proceeds, which were to be
10 segregated as a trust fund under this Section, at any time
11 after such payment was to have been made. Such lien shall
12 include any interest and penalty provided for by this Act and
13 shall be deemed equivalent to, and have the same effect as, the
14 State tax lien under the Retailers' Occupation Tax Act. The
15 term "person" as used in this Section, and in Section 10.4 of
16 this Act, shall have the same meaning as provided in Section 10
17 of this Act. This Section, and Sections 10.4 and 10.5 of this
18 Act shall apply with respect to all lottery tickets or shares
19 generated by computer terminal, other electronic device, and
20 any other tickets delivered to sales agents on and after
21 September 1, 1987. If the State enters into a Management and
22 Concession Agreement pursuant to which a Concessionaire is
23 authorized to manage or operate the Lottery: (i) the
24 Concessionaire may be the Department's authorized collection
25 representative; and (ii) no such arrangement shall diminish the
26 Department's rights pursuant to this Section. For purposes of

 

 

09500HB1496sam002 - 49 - LRB095 08420 HLH 51788 a

1 this Section, "sales agent" includes any sales agent engaged by
2 a Concessionaire pursuant to the terms of a Management and
3 Concession Agreement.
4 (Source: P.A. 86-905.)
 
5     (20 ILCS 1605/10.4)  (from Ch. 120, par. 1160.4)
6     Sec. 10.4. Proceeds received by sales agent; violations.
7 Every person who shall violate the provisions of Section 10.3,
8 or who does not segregate and keep separate and apart from all
9 other funds and assets, all proceeds from the sale of lottery
10 tickets received by a person in the capacity of a sales agent,
11 shall upon conviction thereof be guilty of a Class 4 felony.
12 The provisions of this Section shall be enforced by the
13 Illinois Department of State Police and prosecuted by the
14 Attorney General.
15 (Source: P.A. 85-183; 86-1475.)
 
16     (20 ILCS 1605/10.5)  (from Ch. 120, par. 1160.5)
17     Sec. 10.5. Sales agent; insolvency. Whenever any person who
18 receives proceeds from the sale of lottery tickets in the
19 capacity of sales agent becomes insolvent, or dies insolvent,
20 the proceeds due the Department from such person or his estate
21 shall have preference over all debts or demands, except as
22 follows:
23     (a) Amounts due for necessary funeral expenses;
24     (b) Amounts due for medical care and medicine during his

 

 

09500HB1496sam002 - 50 - LRB095 08420 HLH 51788 a

1 most recent illness preceding death;
2     (c) Debts due to the United States;
3     (d) Debts due to the State of Illinois and all State and
4 local taxes; and
5     (e) Wages for labor performed within the 6 months
6 immediately preceding the death of such deceased person, not
7 exceeding $1,000 due to another person and provided further
8 that such proceeds shall be nondischargeable in insolvency
9 proceedings instituted pursuant to Chapter 7, Chapter 11, or
10 Chapter 13 of the Federal Bankruptcy Act.
11 (Source: P.A. 85-183.)
 
12     (20 ILCS 1605/10.6)  (from Ch. 120, par. 1160.6)
13     Sec. 10.6. Odds of winning. The Division shall make an
14 effort to more directly inform players of the odds of winning
15 prizes. This effort shall include, at a minimum, that the
16 Division require all ticket agents to display a placard stating
17 the odds of winning for each game offered by that agent. In the
18 event that the State shall enter into a Management and
19 Concession Agreement, the Division shall be relieved of its
20 duties under this Section 10.6 and the Concessionaire shall be
21 obligated to comply with the requirements of this Section 10.6.
22 (Source: P.A. 94-776, eff. 5-19-06.)
 
23     (20 ILCS 1605/10.7)
24     Sec. 10.7. Compulsive gambling.

 

 

09500HB1496sam002 - 51 - LRB095 08420 HLH 51788 a

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

 

 

09500HB1496sam002 - 52 - LRB095 08420 HLH 51788 a

1     (20 ILCS 1605/11)  (from Ch. 120, par. 1161)
2     Sec. 11. Officers and employees; civil or criminal
3 penalties; devolution of powers or duties. Every officer and
4 employee shall for any offense be subject to the same penalty
5 or penalties, civil or criminal, as are prescribed by existing
6 law for the same offense by any officer or employee whose
7 powers or duties devolve upon him under this Act.
8 (Source: P.A. 78-3rd S.S.-20.)
 
9     (20 ILCS 1605/12)  (from Ch. 120, par. 1162)
10     Sec. 12. Public inspection and copying of records and data;
11 exceptions. The public inspection and copying of the records
12 and data of the Division and the Board shall be generally
13 governed by the provisions of the Freedom of Information Act
14 except that the following shall additionally be exempt from
15 inspection and copying:
16         (i) information privileged against introduction in
17     judicial proceedings;
18         (ii) internal communications of the several agencies;
19         (iii) information concerning secret manufacturing
20     processes or confidential data submitted by any person
21     under this Act;
22         (iv) any creative proposals, scripts, storyboards or
23     other materials prepared by or for the Division or a
24     Concessionaire under a Management and Concession

 

 

09500HB1496sam002 - 53 - LRB095 08420 HLH 51788 a

1     Agreement, prior to the placement of the materials in the
2     media, if the prior release of the materials would
3     compromise the effectiveness of an advertising campaign.
4 (Source: P.A. 94-776, eff. 5-19-06.)
 
5     (20 ILCS 1605/13)  (from Ch. 120, par. 1163)
6     Sec. 13. Right to prize; payment. Except as otherwise
7 provided in Section 13.1, no prize, nor any portion of a prize,
8 nor any right of any person to a prize awarded shall be
9 assignable. Any prize, or portion thereof remaining unpaid at
10 the death of a prize winner, may be paid to the estate of such
11 deceased prize winner, or to the trustee under a revocable
12 living trust established by the deceased prize winner as
13 settlor, provided that a copy of such a trust has been filed
14 with the Department along with a notarized letter of direction
15 from the settlor and no written notice of revocation has been
16 received by the Division prior to the settlor's death.
17 Following such a settlor's death and prior to any payment to
18 such a successor trustee, the Superintendent shall obtain from
19 the trustee a written agreement to indemnify and hold the
20 Department and the Division harmless with respect to any claims
21 that may be asserted against the Department or the Division
22 arising from payment to or through the trust. Notwithstanding
23 any other provision of this Section, any person pursuant to an
24 appropriate judicial order may be paid the prize to which a
25 winner is entitled, and all or part of any prize otherwise

 

 

09500HB1496sam002 - 54 - LRB095 08420 HLH 51788 a

1 payable by State warrant under this Section shall be withheld
2 upon certification to the State Comptroller from the Department
3 of Healthcare and Family Services as provided in Section
4 10-17.5 of The Illinois Public Aid Code. The Director and the
5 Superintendent shall be discharged of all further liability
6 upon payment of a prize pursuant to this Section.
7     If the State enters into a Management and Concession
8 Agreement pursuant to which a payor other than the State, or a
9 department, division, agency, or other unit of the State shall
10 have the obligation to pay a prize, except as otherwise
11 provided in Section 13.1, neither a prize, nor any portion of a
12 prize, nor any right of any person to a prize awarded shall be
13 assignable. Any prize, or portion thereof remaining unpaid at
14 the death of a prize winner, may be paid to the estate of that
15 deceased prize winner, or to the trustee under a revocable
16 living trust established by the deceased prize winner as
17 settlor, provided that a copy of that trust has been delivered
18 to the third party prize payor along with a notarized letter of
19 direction from the settlor and no written notice of revocation
20 has been received by the third party prize payor prior to the
21 settlor's death. Following such a settlor's death and prior to
22 any payment to such a successor trustee, the third party prize
23 payor shall obtain from the trustee a written agreement to
24 indemnify and hold the third party prize payor and the State
25 harmless with respect to any claims that may be asserted
26 against such third party prize payor or the State arising from

 

 

09500HB1496sam002 - 55 - LRB095 08420 HLH 51788 a

1 the payment of the prize to or through the trust. The Director
2 and the Superintendent shall be discharged of all further
3 liability upon payment of a prize pursuant to this Section and
4 shall in no event be liable for any failure of a Concessionaire
5 to pay any prize.
6 (Source: P.A. 94-776, eff. 5-19-06; 95-331, eff. 8-21-07.)
 
7     (20 ILCS 1605/14)  (from Ch. 120, par. 1164)
8     Sec. 14. Sale of ticket or share at greater than fixed
9 price; sale or resale of tickets or shares; charging a fee to
10 redeem winning ticket or share; punishment. No person shall
11 sell a ticket or share at a price greater than that fixed by
12 rule or regulation of the Department or the Division. No person
13 other than a licensed lottery sales agent or distributor or a
14 Concessionaire or a sales agent engaged by a Concessionaire
15 pursuant to the terms of a Management and Concession Agreement
16 shall sell or resell lottery tickets or shares. No person shall
17 charge a fee to redeem a winning ticket or share.
18     Any person convicted of violating this Section shall be
19 guilty of a Class B misdemeanor; provided, that if any offense
20 under this Section is a subsequent offense, the offender shall
21 be guilty of a Class 4 felony.
22 (Source: P.A. 94-776, eff. 5-19-06.)
 
23     (20 ILCS 1605/14.2)  (from Ch. 120, par. 1164.2)
24     Sec. 14.2. Lottery ticket fraud; prima facie evidence. Any

 

 

09500HB1496sam002 - 56 - LRB095 08420 HLH 51788 a

1 person who, with intent to defraud, shall falsely make, alter,
2 forge, utter, pass or counterfeit a lottery ticket or share
3 issued by the State of Illinois under this Act shall be guilty
4 of a Class 4 felony.
5     It shall be prima facie evidence of intent to defraud for a
6 person to possess a lottery ticket or share issued by the State
7 under this Act if he or she knows that ticket or share was
8 falsely made, altered, forged, uttered, passed, or
9 counterfeited.
10 (Source: P.A. 89-466, eff. 6-13-96.)
 
11     (20 ILCS 1605/14.3)
12     Sec. 14.3. Misuse of proprietary material prohibited.
13 Except as may be provided in Section 7.11, or by bona fide sale
14 or by prior authorization from the Department or the Division,
15 or otherwise by law, all premiums, promotional and other
16 proprietary material produced or acquired by the Division as
17 part of its advertising and promotional activities shall remain
18 the property of the Department. Nothing herein shall be
19 construed to affect the rights or obligations of the Department
20 or any other person under federal or State trademark or
21 copyright laws, nor shall anything herein be construed to
22 prevent the Department or Division from assigning its rights in
23 such property to a Concessionaire pursuant to a Management and
24 Concession Agreement.
25 (Source: P.A. 94-776, eff. 5-19-06.)
 

 

 

09500HB1496sam002 - 57 - LRB095 08420 HLH 51788 a

1     (20 ILCS 1605/15)  (from Ch. 120, par. 1165)
2     Sec. 15. Prohibition against minors under 18 years of age
3 and certain other persons purchasing or being furnished lottery
4 tickets or shares. No minor under 18 years of age shall buy a
5 lottery ticket or share. No person shall sell, distribute
6 samples of, or furnish a lottery ticket or share to any minor
7 under 18 years of age, buy a lottery ticket or share for any
8 minor under 18 years of age, or aid and abet in the purchase of
9 lottery tickets or shares by a minor under 18 years of age.
10     No ticket or share shall be purchased by, and no prize
11 shall be paid to any of the following persons: any member of
12 the Board or any officer or other person employed by the Board
13 or by the Department or by the Concessionaire or any party with
14 which the Concessionaire may contract to operate the Lottery;
15 any spouse, child, brother, sister or parent residing as a
16 member of the same household in the principal place of abode of
17 any such persons; or any minor under 18 years of age.
18     Any violation of this Section by a person other than the
19 purchasing minor shall be a Class B misdemeanor; provided, that
20 if any violation of this Section is a subsequent violation, the
21 offender shall be guilty of a Class 4 felony. Notwithstanding
22 any provision to the contrary, a violation of this Section by a
23 minor under 18 years of age shall be a petty offense.
24 (Source: P.A. 90-346, eff. 8-8-97.)
 

 

 

09500HB1496sam002 - 58 - LRB095 08420 HLH 51788 a

1     (20 ILCS 1605/16)  (from Ch. 120, par. 1166)
2     Sec. 16. Violations of Act, rules, or regulations;
3 punishment; enforcement. It shall be a Class B misdemeanor to
4 violate this Act or any rule or regulation promulgated
5 thereunder, or knowingly to submit any false information under
6 this Act or rules or regulations adopted thereunder; except
7 that, if any person engages in such offense after one or more
8 prior convictions under this Act, or any law of the United
9 States or of any State relating to gambling or State operated
10 lotteries, he shall be guilty of a Class 4 felony. It shall be
11 the duty of all State and local law enforcement officers to
12 enforce such Act and regulations.
13 (Source: P.A. 78-3rd S.S.-20.)
 
14     (20 ILCS 1605/17)  (from Ch. 120, par. 1167)
15     Sec. 17. Other laws providing penalty or disability for
16 sale of lottery tickets or shares inapplicable. No other law
17 providing any penalty or disability for the sale of lottery
18 tickets or shares or any acts done in connection with the
19 lottery established under this Act shall apply to the sale of
20 tickets or shares performed pursuant to this Act.
21 (Source: P.A. 81-477.)
 
22     (20 ILCS 1605/19)  (from Ch. 120, par. 1169)
23     Sec. 19. Claiming prizes. The Division shall establish an
24 appropriate period for the claiming of prizes for each lottery

 

 

09500HB1496sam002 - 59 - LRB095 08420 HLH 51788 a

1 game offered. Each claim period shall be stated in game rules
2 and written play instructions issued by the Superintendent in
3 accordance with Section 7.1 of this Act or, if the State enters
4 into a Management and Concession Agreement pursuant to which a
5 Concessionaire shall manage or operate the Lottery, such rules
6 and written play instructions as may be issued in accordance
7 with the terms of the Management and Concession Agreement.
8 Written play instructions shall be made available to all
9 players through sales agents licensed to sell game tickets or
10 shares. Prizes for lottery games which involve the purchase of
11 a physical lottery ticket may be claimed only by presentation
12 of a valid winning lottery ticket that matches validation
13 records on file with the Lottery or, if the State enters into a
14 Management and Concession Agreement pursuant to which a
15 Concessionaire manages or operates the Lottery, the records on
16 file with that Concessionaire; no claim may be honored which is
17 based on the assertion that the ticket was lost or stolen. No
18 lottery ticket which has been altered, mutilated, or fails to
19 pass validation tests shall be deemed to be a winning ticket.
20     If no claim is made for the money within the established
21 claim period, then the unclaimed prize money shall be
22 transferred to the Illinois Education Trust Fund except, in the
23 event the Lottery is operated pursuant to the terms of a
24 Management and Concession Agreement, as may otherwise be
25 provided in such agreement as is then in effect the prize may
26 be included in the prize pool of such special drawing or

 

 

09500HB1496sam002 - 60 - LRB095 08420 HLH 51788 a

1 drawings as the Division may, from time to time, designate.
2 Unclaimed multi-state game prize money may be included in the
3 multi-state prize pool for such special drawing or drawings as
4 the multi-state game directors may, from time to time,
5 designate. Any bonuses offered by the Department to sales
6 agents who sell winning tickets or shares shall be payable to
7 such agents regardless of whether or not the prize money on the
8 ticket or share is claimed, provided that the agent can be
9 identified as the vendor of the winning ticket or share, and
10 that the winning ticket or share was sold on or after January
11 1, 1984. All unclaimed prize money not included in the prize
12 pool of a special drawing shall be transferred to the Common
13 School Fund.
14 (Source: P.A. 94-776, eff. 5-19-06.)
 
15     (20 ILCS 1605/20)  (from Ch. 120, par. 1170)
16     Sec. 20. State Lottery Fund.
17     (a) There is created in the State Treasury a special fund
18 to be known as the "State Lottery Fund". Such fund shall
19 consist of all revenues received from (1) the sale of lottery
20 tickets or shares, (net of commissions, fees representing those
21 expenses that are directly proportionate to the sale of tickets
22 or shares at the agent location, and prizes of less than $600
23 which have been validly paid at the agent level), (2)
24 application fees, and (3) all other sources including moneys
25 credited or transferred thereto from any other fund or source

 

 

09500HB1496sam002 - 61 - LRB095 08420 HLH 51788 a

1 pursuant to law and, if the State enters into a Management and
2 Concession Agreement, any moneys accruing to the State pursuant
3 to the terms of that Agreement. Interest earnings of the State
4 Lottery Fund shall be credited to the Common School Fund.
5     (b) The receipt and distribution of moneys under Section
6 21.5 of this Act shall be in accordance with Section 21.5.
7     (c) The receipt and distribution of moneys under Section
8 21.6 of this Act shall be in accordance with Section 21.6.
9     (d) The receipt and distribution of moneys under Section
10 21.7 of this Act shall be in accordance with Section 21.7.
11     (e) (d) The receipt and distribution of moneys under
12 Section 21.8 21.7 of this Act shall be in accordance with
13 Section 21.8 21.7.
14 (Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05;
15 95-331, eff. 8-21-07; 95-673, eff. 10-11-07; 95-674, eff.
16 10-11-07; revised 12-5-07.)
 
17     (20 ILCS 1605/20.2 new)
18     Sec. 20.2. Transfer of moneys from State Lottery Fund to
19 Common School Fund. Notwithstanding any provision set forth in
20 this Act or State law to the contrary, on or before the last
21 day of each fiscal year the State Comptroller shall direct and
22 the State Treasurer shall transfer moneys in and revenues
23 received by the State Lottery Fund to the Common School Fund.
 
24     (20 ILCS 1605/21)  (from Ch. 120, par. 1171)

 

 

09500HB1496sam002 - 62 - LRB095 08420 HLH 51788 a

1     Sec. 21. Payments or deposits of moneys and income. All
2 lottery sales agents or distributors shall be liable to the
3 Lottery for any and all tickets accepted or generated by any
4 employee or representative of that agent or distributor, and
5 such tickets shall be deemed to have been purchased by the
6 agent or distributor unless returned to the Lottery or if the
7 State enters into a Management and Concession Agreement
8 pursuant to which a Concessionaire engages sales agents or
9 distributors, to such Concessionaire as may be allowed
10 according to the terms of the Management and Concession
11 Agreement within the time and in the manner prescribed by the
12 Superintendent. All moneys received by such agents or
13 distributors from the sale of lottery tickets or shares, less
14 the amount retained as compensation for the sale of the tickets
15 or shares and the amount paid out as prizes, shall be paid over
16 to a lottery representative or deposited in a bank or savings
17 and loan association approved by the State Treasurer, as
18 prescribed by the Superintendent or, if the State enters into a
19 Management and Concession Agreement pursuant to which those
20 moneys are to be held by a trustee, to that trustee and in
21 accordance with such terms as may be set forth in the
22 Management and Concession Agreement.
23     No bank or savings and loan association shall receive any
24 public funds as permitted by this Section, unless it has
25 complied with the requirements established pursuant to Section
26 6 of the Public Funds Investment Act.

 

 

09500HB1496sam002 - 63 - LRB095 08420 HLH 51788 a

1     Each payment or deposit shall be accompanied by a report of
2 the agent's receipts and transactions in the sale of lottery
3 tickets in such form and containing such information as the
4 Superintendent, or if the State enters into a Management and
5 Concession Agreement, as the Concessionaire may require. Any
6 discrepancies in such receipts and transactions may be resolved
7 as provided by the rules and regulations of the Department.
8     If any money due the Lottery by a sales agent or
9 distributor is not paid when due or demanded, it shall
10 immediately become delinquent and be billed on a subsequent
11 monthly statement. If on the closing date for any monthly
12 statement a delinquent amount previously billed of more than
13 $50 remains unpaid, interest in such amount shall be accrued at
14 the rate of 2% per month or fraction thereof from the date when
15 such delinquent amount becomes past due until such delinquent
16 amount, including interest, penalty and other costs and charges
17 that the Department may incur in collecting such amounts, is
18 paid. In case any agent or distributor fails to pay any moneys
19 due the Lottery within 30 days after a second bill or statement
20 is rendered to the agent or distributor, such amount shall be
21 deemed seriously delinquent and may be referred by the
22 Department to a collection agency or credit bureau for
23 collection. Any contract entered into by the Department for the
24 collection of seriously delinquent accounts with a collection
25 agency or credit bureau may be satisfied by a commercially
26 reasonable percentage of the delinquent account recouped,

 

 

09500HB1496sam002 - 64 - LRB095 08420 HLH 51788 a

1 which shall be negotiated by the Department in accordance with
2 commercially accepted standards. Any costs incurred by the
3 Department or others authorized to act in its behalf in
4 collecting such delinquencies may be assessed against the agent
5 or distributor and included as a part of the delinquent
6 account.
7     In case of failure of an agent or distributor to pay a
8 seriously delinquent amount, or any portion thereof to the
9 State, including interest, penalty and costs, the Division may
10 issue a Notice of Assessment. In determining amounts shown on
11 the Notice of Assessment, the Division shall utilize the
12 financial information available from its records. Such Notice
13 of Assessment shall be prima facie correct and shall be prima
14 facie evidence of delinquent sums due under this Section at any
15 hearing before the Board, or its Hearing Officers, or at any
16 other legal proceeding. Reproduced copies of the Division's
17 records relating to a delinquent account or a Notice of
18 Assessment offered in the name of the Department, under the
19 Certificate of the Director or any officer or employee of the
20 Department designated in writing by the Director shall, without
21 further proof, be admitted into evidence in any such hearing or
22 any legal proceeding and shall be prima facie proof of the
23 delinquency, including principal and any interest, penalties
24 and costs, as shown thereon. The Attorney General may bring
25 suit on behalf of the Department to collect all such delinquent
26 amounts, or any portion thereof, including interest, penalty

 

 

09500HB1496sam002 - 65 - LRB095 08420 HLH 51788 a

1 and costs, due the Lottery.
2     Any person who accepts money that is due to the Department
3 from the sale of lottery tickets or shares under this Act, but
4 who wilfully fails to remit such payment to the Department when
5 due or who purports to make such payment but wilfully fails to
6 do so because such his check or other remittance fails to clear
7 the financial institution bank or savings and loan association
8 against which it is drawn, in addition to the amount due and in
9 addition to any other penalty provided by law, shall be
10 assessed, and shall pay, a penalty equal to 5% of the
11 deficiency plus any costs or charges incurred by the Department
12 in collecting such amount.
13     The Director may make such arrangements for any person(s),
14 financial institution, banks, savings and loan associations or
15 distributors, to perform such functions, activities or
16 services in connection with the operation of the lottery as he
17 deems advisable pursuant to this Act, the State Comptroller
18 Act, or the rules and regulations of the Department, and such
19 functions, activities or services shall constitute lawful
20 functions, activities and services of such person(s), banks,
21 savings and loan associations or distributors.
22     All income arising out of any activity or purpose of the
23 Division shall, pursuant to the State Finance Act, be paid into
24 the State Treasury except as otherwise provided by the rules
25 and regulations of the Department and shall be covered into a
26 special fund to be known as the State Lottery Fund. Banks and

 

 

09500HB1496sam002 - 66 - LRB095 08420 HLH 51788 a

1 savings and loan associations may be compensated for services
2 rendered based upon the activity and amount of funds on
3 deposit.
4 (Source: P.A. 94-776, eff. 5-19-06.)
 
5     (20 ILCS 1605/21.2)  (from Ch. 120, par. 1171.2)
6     Sec. 21.2. (Repealed). There is created a special fund in
7 the State Treasury known as the Illinois Land Grant Collegiate
8 Athletics Fund. The Department shall designate a special
9 lottery game of its choosing which it shall prepare and offer
10 for sale to the public, the net proceeds from which shall be
11 transferred to such fund for distribution to the University of
12 Illinois Athletic Association as otherwise authorized by law.
13 (Source: P.A. 84-1128.)
 
14     (20 ILCS 1605/21.3)  (from Ch. 120, par. 1171.3)
15     Sec. 21.3. Officer of corporation; personal liability. Any
16 officer of any corporation licensed as an agent for the sale of
17 Lottery tickets and products shall be personally liable for the
18 total amount of Lottery receipts due the Department which are
19 unpaid by the corporation, together with any interest and
20 penalties thereon assessed in accordance with the provision of
21 Section 21 of the Act.
22     The personal liability of a corporate officer as provided
23 herein shall survive the dissolution of the corporation. No
24 action to enforce such personal liability shall be commenced

 

 

09500HB1496sam002 - 67 - LRB095 08420 HLH 51788 a

1 unless a notice of the delinquent account has been sent to such
2 corporate officer at the address shown on the Lottery records
3 or otherwise known to Department officials, and no such action
4 shall be commenced after the expiration of 3 years from the
5 date of the Department's notice of delinquent account or the
6 termination of any court proceedings with respect to the issue
7 of the delinquency of a corporation.
8     Procedures for protest and review of a notice of the
9 Department's intention to enforce personal liability against a
10 corporate officer shall be the same as those prescribed for
11 protest and review of the Notice of Assessment as set forth in
12 Section 7.3 of this Act.
13 (Source: P.A. 88-522.)
 
14     (20 ILCS 1605/21.5)
15     Sec. 21.5. Superintendent Carolyn Adams Ticket For The
16 Cure.
17     (a) The Department shall offer a special instant
18 scratch-off game with the title of "Carolyn Adams Ticket For
19 The Cure". The game shall commence on January 1, 2006 or as
20 soon thereafter, in the discretion of the Director, as is
21 reasonably practical, and shall be discontinued on December 31,
22 2011. The operation of the game shall be governed by this Act
23 and any rules adopted by the Department. The Department must
24 consult with the Ticket For The Cure Board, which is
25 established under Section 2310-347 of the Department of Public

 

 

09500HB1496sam002 - 68 - LRB095 08420 HLH 51788 a

1 Health Powers and Duties Law of the Civil Administrative Code
2 of Illinois, regarding the design and promotion of the game. If
3 any provision of this Section is inconsistent with any other
4 provision of this Act, then this Section governs.
5     (b) The Ticket For The Cure Fund is created as a special
6 fund in the State treasury. The net revenue from the Carolyn
7 Adams Ticket For The Cure special instant scratch-off game
8 shall be deposited into the Fund for appropriation by the
9 General Assembly solely to the Department of Public Health for
10 the purpose of making grants to public or private entities in
11 Illinois for the purpose of funding research concerning breast
12 cancer and for funding services for breast cancer victims. The
13 Department must, before grants are awarded, provide copies of
14 all grant applications to the Ticket For The Cure Board,
15 receive and review the Board's recommendations and comments,
16 and consult with the Board regarding the grants. For purposes
17 of this Section, the term "research" includes, without
18 limitation, expenditures to develop and advance the
19 understanding, techniques, and modalities effective in the
20 detection, prevention, screening, and treatment of breast
21 cancer and may include clinical trials. The grant funds may not
22 be used for institutional, organizational, or community-based
23 overhead costs, indirect costs, or levies.
24     Moneys received for the purposes of this Section,
25 including, without limitation, net revenue from the special
26 instant scratch-off game and gifts, grants, and awards from any

 

 

09500HB1496sam002 - 69 - LRB095 08420 HLH 51788 a

1 public or private entity, must be deposited into the Fund. Any
2 interest earned on moneys in the Fund must be deposited into
3 the Fund.
4     For purposes of this subsection, "net revenue" means the
5 total amount for which tickets have been sold less the sum of
6 the amount paid out in prizes and the actual administrative
7 expenses of the Department solely related to the Carolyn Adams
8 Ticket For The Cure game.
9     (c) During the time that tickets are sold for the Carolyn
10 Adams Ticket For The Cure game, the Department shall not
11 unreasonably diminish the efforts devoted to marketing any
12 other instant scratch-off lottery game.
13     (d) The Department may adopt any rules necessary to
14 implement and administer the provisions of this Section.
15 (Source: P.A. 94-120, eff. 7-6-05.)
 
16     (20 ILCS 1605/21.9 new)
17     Sec. 21.9. Right to direct offer of special cause games. If
18 the State enters into a Management and Concession Agreement,
19 the State shall retain the right to direct the Concessionaire
20 to offer special cause games as the General Assembly may
21 determine appropriate from time to time. The General Assembly
22 may in its discretion direct the deposit and use of net
23 revenues from any such special cause games. The operation of
24 any such special cause games shall be governed by this Act and
25 any rules necessary to implement and administer the provisions

 

 

09500HB1496sam002 - 70 - LRB095 08420 HLH 51788 a

1 of this Section as adopted by the Department. For purposes of
2 this Section, "net revenue" means the total amount for which
3 tickets have been sold less the sum of the amount paid out in
4 the prizes and the costs and expenses related to the game.
 
5     (20 ILCS 1605/24)  (from Ch. 120, par. 1174)
6     Sec. 24. Preaudit of accounts and transactions by State
7 Comptroller; post-audits by Auditor General. The State
8 Comptroller shall conduct a preaudit of all accounts and
9 transactions of the Department in connection with the operation
10 of the State Lottery under the State Comptroller Act, excluding
11 payments issued by the Department for prizes of $25,000 or
12 less.
13     The Auditor General or a certified public accountant firm
14 appointed by him shall conduct an annual post-audit of all
15 accounts and transactions of the Department in connection with
16 the operation of the State Lottery and other special post
17 audits as the Auditor General, the Legislative Audit
18 Commission, or the General Assembly deems necessary. The annual
19 post-audits shall include payments made by lottery sales agents
20 of prizes of less than $600 authorized under Section 20, and
21 payments made by the Department of prizes up to $25,000
22 authorized under Section 20.1. The Auditor General or his agent
23 conducting an audit under this Act shall have access and
24 authority to examine any and all records of the Department or
25 the Board, its distributing agents and its licensees.

 

 

09500HB1496sam002 - 71 - LRB095 08420 HLH 51788 a

1 (Source: P.A. 94-776, eff. 5-19-06.)
 
2     (20 ILCS 1605/25)  (from Ch. 120, par. 1175)
3     Sec. 25. Review under Administrative Review Law. Any party
4 adversely affected by a final order or determination of the
5 Board or the Department may obtain judicial review, by filing a
6 petition for review within 35 days after the entry of the order
7 or other final action complained of, pursuant to the provisions
8 of the Administrative Review Law, as amended and the rules
9 adopted pursuant thereto.
10 (Source: P.A. 82-783.)
 
11     (20 ILCS 1605/26)  (from Ch. 120, par. 1176)
12     Sec. 26. Severability of invalid provisions or
13 applications. If any clause, sentence, paragraph, subdivision,
14 Section, provision or other portion of this Act or the
15 application thereof to any person or circumstances is held to
16 be invalid, such holding shall not affect, impair or invalidate
17 the remainder of this Act or the application of such portion
18 held invalid to any other person or circumstances, but shall be
19 confined in its operation to the clause, sentence, paragraph,
20 subdivision, provision or other portion thereof directly
21 involved in such holding or to the person and circumstances
22 therein involved.
23 (Source: P.A. 78-3rd S.S.-20.)
 

 

 

09500HB1496sam002 - 72 - LRB095 08420 HLH 51788 a

1     (20 ILCS 1605/27)  (from Ch. 120, par. 1177)
2     Sec. 27. Contracts; investments; proceeds; Deferred
3 Lottery Prize Winners Trust Fund; disbursements; State Lottery
4 Fund; Lottery Concession Fund; Lottery Escrow Account.
5     (a) The State Treasurer may, with the consent of the
6 Director, contract with any person or corporation, including,
7 without limitation, a bank, banking house, trust company or
8 investment banking firm, to perform such financial functions,
9 activities or services in connection with operation of the
10 lottery as the State Treasurer and the Director may prescribe.
11     (b) All proceeds from investments made pursuant to
12 contracts executed by the State Treasurer, with the consent of
13 the Director, to perform financial functions, activities or
14 services in connection with operation of the lottery, shall be
15 deposited and held by the State Treasurer as ex-officio
16 custodian thereof, separate and apart from all public money or
17 funds of this State in a special trust fund outside the State
18 treasury. Such trust fund shall be known as the "Deferred
19 Lottery Prize Winners Trust Fund", and shall be administered by
20 the Director.
21     The Director shall, at such times and in such amounts as
22 shall be necessary, prepare and send to the State Comptroller
23 vouchers requesting payment from the Deferred Lottery Prize
24 Winners Trust Fund to deferred prize winners, in a manner that
25 will insure the timely payment of such amounts owed.
26     This Act shall constitute an irrevocable appropriation of

 

 

09500HB1496sam002 - 73 - LRB095 08420 HLH 51788 a

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

 

 

09500HB1496sam002 - 74 - LRB095 08420 HLH 51788 a

1 subsection.
2     (c-5) If a deferred lottery prize is not claimed within the
3 claim period established by game rule, then the securities or
4 other instruments purchased to fund the prize shall be
5 liquidated and the liquidated amount shall be transferred to
6 the State Lottery Fund for disposition pursuant to Section 19
7 of this Act. In the event that the State shall enter into a
8 Management and Concession Agreement, this Section 27(c-5)
9 shall not apply to any prizes awarded after the closing date of
10 the Management and Concession Agreement.
11     (c-10) The Director may use a portion of the moneys in the
12 Deferred Lottery Prize Winners Trust Fund to purchase bonds to
13 pay a lifetime prize if the prize duration exceeds the length
14 of available securities. If the winner of a lifetime prize
15 exceeds his or her life expectancy as determined using
16 actuarial assumptions and the securities or moneys set aside to
17 pay the prize have been exhausted, moneys in the State Lottery
18 Fund shall be used to make payments to the winner for the
19 duration of the winner's life. In the event that the State
20 shall enter into a Management and Concession Agreement, this
21 Section 27(c-10) shall not apply to any prizes awarded after
22 the closing date of the Management and Concession Agreement.
23     (c-15) From time to time, the Director may request that the
24 State Comptroller transfer any excess moneys in the Deferred
25 Lottery Prize Winners Trust Fund to the Lottery Fund. In the
26 event that the State shall enter into a Management and

 

 

09500HB1496sam002 - 75 - LRB095 08420 HLH 51788 a

1 Concession Agreement, this Section 27(c-15) shall not apply to
2 any prizes awarded after the closing date of the Management and
3 Concession Agreement.
4     (c-20) In the event that the State shall enter into a
5 Management and Concession Agreement pursuant to which a
6 Concessionaire is authorized to manage or operate the Lottery,
7 there shall be created a fund to be known as the Lottery
8 Concession Trust Fund, which shall be a special
9 non-appropriated trust fund held outside of the State Treasury
10 and separate and apart from all public money and funds of this
11 State for the purpose of holding Concession revenues. All
12 proceeds from the sale of Lottery tickets or shares and all
13 other revenue from the State's conduct of the Lottery as
14 authorized under this amendatory Act of the 95th General
15 Assembly, including Lottery revenues a Concessionaire may be
16 eligible to receive under a Management and Concession
17 Agreement, with the exception of the initial consideration
18 distributed pursuant to Section 2.2, shall be paid into the
19 Fund. Within the Lottery Concession Trust Fund, there shall be
20 created sub-trusts for the purpose of holding moneys for the
21 exclusive benefit of the State and recipients of Prize Claims.
22     The Fund shall begin to receive lottery proceeds and
23 revenues on the date that a Management and Concession Agreement
24 first becomes effective, and moneys in the Fund shall not at
25 any time during the term of such an agreement be appropriated
26 or diverted to any other use or purpose. The Fund shall be held

 

 

09500HB1496sam002 - 76 - LRB095 08420 HLH 51788 a

1 by an Illinois trustee designated pursuant to the Concession
2 and Management Agreement. All interest or other earnings
3 accruing or received on amounts in the Fund shall be credited
4 to and retained by the Fund. The Fund shall be held,
5 administered, invested, and disbursed in accordance with the
6 trust agreement and the Management and Concession Agreement.
7     (c-25) The State may, through and limited by a valid and
8 enforceable Management and Concession Agreement, waive
9 sovereign immunity with respect to some or all claims asserted
10 by a Concessionaire relating to the Concession.
11     (d) This amendatory Act of 1985 shall be construed
12 liberally to effect the purposes of the Illinois Lottery Law.
13 (Source: P.A. 89-466, eff. 6-13-96; 90-346, eff. 8-8-97.)
 
14     Section 10. The State Finance Act is amended by adding
15 Sections 5.715 and 5.716 as follows:
 
16     (30 ILCS 105/5.715 new)
17     Sec. 5.715. The Illinois Education Trust Fund.
 
18     (30 ILCS 105/5.716 new)
19     Sec. 5.716. The Illinois Works Fund.
 
20     Section 15. The Illinois Procurement Code is amended by
21 changing Section 50-70 as follows:
 

 

 

09500HB1496sam002 - 77 - LRB095 08420 HLH 51788 a

1     (30 ILCS 500/50-70)
2     Sec. 50-70. Additional provisions. This Code is subject to
3 applicable provisions of the following Acts:
4         (1) Article 33E of the Criminal Code of 1961;
5         (2) the Illinois Human Rights Act;
6         (3) the Discriminatory Club Act;
7         (4) the Illinois Governmental Ethics Act;
8         (5) the State Prompt Payment Act;
9         (6) the Public Officer Prohibited Activities Act;
10         (7) the Drug Free Workplace Act; and
11         (8) the Illinois Power Agency Act; .
12         (9) (8) the Employee Classification Act; and .
13         (10) The Illinois Lottery Law.
14 (Source: P.A. 95-26, eff. 1-1-08; 95-481, eff. 8-28-07; revised
15 11-2-07.)
 
16     Section 20. The Court of Claims Act is amended by changing
17 Section 8 as follows:
 
18     (705 ILCS 505/8)   (from Ch. 37, par. 439.8)
19     Sec. 8. Court of Claims jurisdiction. The court shall have
20 exclusive jurisdiction to hear and determine the following
21 matters:
22     (a) All claims against the State founded upon any law of
23 the State of Illinois or upon any regulation adopted thereunder
24 by an executive or administrative officer or agency; provided,

 

 

09500HB1496sam002 - 78 - LRB095 08420 HLH 51788 a

1 however, the court shall not have jurisdiction (i) to hear or
2 determine claims arising under the Workers' Compensation Act or
3 the Workers' Occupational Diseases Act, or claims for expenses
4 in civil litigation, or (ii) to review administrative decisions
5 for which a statute provides that review shall be in the
6 circuit or appellate court.
7     (b) All claims against the State founded upon any contract
8 entered into with the State of Illinois, except and to the
9 extent provided by the Illinois Lottery Law.
10     (c) All claims against the State for time unjustly served
11 in prisons of this State where the persons imprisoned shall
12 receive a pardon from the governor stating that such pardon is
13 issued on the ground of innocence of the crime for which they
14 were imprisoned; provided, the court shall make no award in
15 excess of the following amounts: for imprisonment of 5 years or
16 less, not more than $15,000; for imprisonment of 14 years or
17 less but over 5 years, not more than $30,000; for imprisonment
18 of over 14 years, not more than $35,000; and provided further,
19 the court shall fix attorney's fees not to exceed 25% of the
20 award granted. On December 31, 1996, the court shall make a
21 one-time adjustment in the maximum awards authorized by this
22 subsection (c), to reflect the increase in the cost of living
23 from the year in which these maximum awards were last adjusted
24 until 1996, but with no annual increment exceeding 5%.
25 Thereafter, the court shall annually adjust the maximum awards
26 authorized by this subsection (c) to reflect the increase, if

 

 

09500HB1496sam002 - 79 - LRB095 08420 HLH 51788 a

1 any, in the Consumer Price Index For All Urban Consumers for
2 the previous calendar year, as determined by the United States
3 Department of Labor, except that no annual increment may exceed
4 5%. For both the one-time adjustment and the subsequent annual
5 adjustments, if the Consumer Price Index decreases during a
6 calendar year, there shall be no adjustment for that calendar
7 year. The changes made by Public Act 89-689 apply to all claims
8 filed on or after January 1, 1995 that are pending on December
9 31, 1996 and all claims filed on or after December 31, 1996.
10     (d) All claims against the State for damages in cases
11 sounding in tort, if a like cause of action would lie against a
12 private person or corporation in a civil suit, and all like
13 claims sounding in tort against the Medical Center Commission,
14 the Board of Trustees of the University of Illinois, the Board
15 of Trustees of Southern Illinois University, the Board of
16 Trustees of Chicago State University, the Board of Trustees of
17 Eastern Illinois University, the Board of Trustees of Governors
18 State University, the Board of Trustees of Illinois State
19 University, the Board of Trustees of Northeastern Illinois
20 University, the Board of Trustees of Northern Illinois
21 University, the Board of Trustees of Western Illinois
22 University, or the Board of Trustees of the Illinois
23 Mathematics and Science Academy; provided, that an award for
24 damages in a case sounding in tort, other than certain cases
25 involving the operation of a State vehicle described in this
26 paragraph, shall not exceed the sum of $100,000 to or for the

 

 

09500HB1496sam002 - 80 - LRB095 08420 HLH 51788 a

1 benefit of any claimant. The $100,000 limit prescribed by this
2 Section does not apply to an award of damages in any case
3 sounding in tort arising out of the operation by a State
4 employee of a vehicle owned, leased or controlled by the State.
5 The defense that the State or the Medical Center Commission or
6 the Board of Trustees of the University of Illinois, the Board
7 of Trustees of Southern Illinois University, the Board of
8 Trustees of Chicago State University, the Board of Trustees of
9 Eastern Illinois University, the Board of Trustees of Governors
10 State University, the Board of Trustees of Illinois State
11 University, the Board of Trustees of Northeastern Illinois
12 University, the Board of Trustees of Northern Illinois
13 University, the Board of Trustees of Western Illinois
14 University, or the Board of Trustees of the Illinois
15 Mathematics and Science Academy is not liable for the
16 negligence of its officers, agents, and employees in the course
17 of their employment is not applicable to the hearing and
18 determination of such claims.
19     (e) All claims for recoupment made by the State of Illinois
20 against any claimant.
21     (f) All claims pursuant to the Line of Duty Compensation
22 Act.
23     (g) All claims filed pursuant to the Crime Victims
24 Compensation Act.
25     (h) All claims pursuant to the Illinois National
26 Guardsman's Compensation Act.

 

 

09500HB1496sam002 - 81 - LRB095 08420 HLH 51788 a

1     (i) All claims authorized by subsection (a) of Section
2 10-55 of the Illinois Administrative Procedure Act for the
3 expenses incurred by a party in a contested case on the
4 administrative level.
5 (Source: P.A. 93-1047, eff. 10-18-04.)
 
6     Section 25. The State Lawsuit Immunity Act is amended by
7 changing Section 1 as follows:
 
8     (745 ILCS 5/1)  (from Ch. 127, par. 801)
9     Sec. 1. Except as provided in the Illinois Public Labor
10 Relations Act, the Court of Claims Act, the State Officials and
11 Employees Ethics Act, and Section 1.5 of this Act, the Illinois
12 Lottery Law, and, except as provided in and to the extent
13 provided in the Clean Coal FutureGen for Illinois Act, the
14 State of Illinois shall not be made a defendant or party in any
15 court.
16 (Source: P.A. 95-18, eff. 7-30-07; 95-331, eff. 8-21-07;
17 revised 11-30-07.)
 
18     Section 99. Effective date. This Act takes effect upon
19 becoming law.".