Full Text of HB2438 95th General Assembly
HB2438ham001 95TH GENERAL ASSEMBLY
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Rep. LaShawn K. Ford
Filed: 5/6/2008
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| AMENDMENT TO HOUSE BILL 2438
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| AMENDMENT NO. ______. Amend House Bill 2438 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Lottery Law is amended by changing | 5 |
| Sections 2, 7.2, 9, 19, 20, and 20.1 and by adding Sections | 6 |
| 20.2 and 27.5 as follows:
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| (20 ILCS 1605/2) (from Ch. 120, par. 1152)
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| Sec. 2. This Act is enacted to implement and establish | 9 |
| within the State
a lottery to be operated by the State, the | 10 |
| entire net proceeds of which
are to be used for the support of | 11 |
| the State's Lottery Supports Schools Fund Common School Fund ,
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| except as provided in Sections 21.2, 21.5, 21.6, and 21.7, and | 13 |
| 21.8
21.7 .
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| (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.)
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| (20 ILCS 1605/7.2) (from Ch. 120, par. 1157.2)
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| Sec. 7.2. The rules and regulations of the Department may | 3 |
| include, but
shall not be limited to, the following:
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| (1) The types of lotteries to be conducted;
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| (2) The price, or prices, of tickets or shares in the | 6 |
| lottery;
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| (3) The numbers and sizes of the prizes on the winning | 8 |
| tickets or
shares;
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| (4) The manner of selecting the winning tickets or shares;
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| (5) The manner of payment of prizes to the holders of | 11 |
| winning
tickets or shares;
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| (6) The frequency of the drawing or selections of winning | 13 |
| tickets or
shares, without limitation;
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| (7) Without limit to number, the type or types of locations | 15 |
| at which
tickets or shares may be sold;
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| (8) The method to be used in selling tickets or shares;
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| (9) The manner and amount of compensation, if any, to be | 18 |
| paid
licensed sales agents necessary to provide for the | 19 |
| adequate availability
of tickets or shares to prospective | 20 |
| buyers and for the convenience of
the public;
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| (10) The apportionment of the total revenues accruing from | 22 |
| the sale
of lottery tickets or shares and from all other | 23 |
| sources among (i) the
payment of prizes to the holders of | 24 |
| winning tickets or shares, (ii) the
payment of costs incurred | 25 |
| in the operation and administration of the
lottery, including |
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| the expenses of the Department and the costs resulting
from any | 2 |
| contract or contracts entered into for promotional, | 3 |
| advertising
or operational services or for the purchase or | 4 |
| lease of lottery
equipment and materials, and (iii) for monthly | 5 |
| transfers to the Lottery Supports Schools Fund Common
School | 6 |
| Fund . The net revenues accruing from the sale of lottery | 7 |
| tickets
shall be determined by deducting from total revenues | 8 |
| the payments required
by paragraphs (i) and (ii) of this
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| subsection.
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| (11) Such other matters necessary or desirable for the | 11 |
| efficient and
economical operation and administration of the | 12 |
| lottery and for the
convenience of the purchasers of tickets or | 13 |
| shares and the holders of
winning tickets or shares.
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| Any rules and regulations of the Department with respect to
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| monthly transfers
to the Lottery Supports Schools Fund Common | 16 |
| School Fund are subject to Section 21.2.
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| (Source: P.A. 84-1128.)
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| (20 ILCS 1605/9) (from Ch. 120, par. 1159)
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| Sec. 9. The Superintendent, as administrative head of
the | 20 |
| Division, shall direct and supervise all its administrative and
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| technical activities and shall report to the Director. In | 22 |
| addition to the duties imposed upon him
elsewhere in this Act, | 23 |
| it
shall be the Superintendent's duty:
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| a. To supervise and administer the operation of the lottery | 25 |
| in
accordance with the provisions of this Act or such
rules and |
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| regulations of the Department
adopted thereunder.
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| b. To attend meetings of the Board or to appoint a designee | 3 |
| to
attend in his stead.
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| c. To employ and direct such personnel in accord with the | 5 |
| Personnel Code,
as may be necessary to carry out the purposes | 6 |
| of this Act. The Superintendent may, subject to the approval of | 7 |
| the Director, use the services, personnel, or facilities of the | 8 |
| Department.
In addition, the Superintendent
may by agreement | 9 |
| secure such services as he or she may deem necessary
from any | 10 |
| other department, agency, or unit of the State government, and
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| may employ and compensate such consultants and technical | 12 |
| assistants as may
be required and is otherwise permitted by | 13 |
| law.
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| d. To license, in accordance with the provisions of | 15 |
| Sections 10 and 10.1
of this Act and the rules and regulations | 16 |
| of the Department
adopted thereunder,
as agents to sell lottery | 17 |
| tickets such persons as in his opinion will best
serve the | 18 |
| public convenience and promote the sale of tickets or shares.
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| The Superintendent may require a bond from every licensed | 20 |
| agent, in such
amount as provided in the rules and regulations | 21 |
| of the Department. Every licensed
agent shall prominently | 22 |
| display his license, or a copy thereof, as provided
in the | 23 |
| rules and regulations of the Department.
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| e. To suspend or revoke any license issued pursuant to this | 25 |
| Act or the
rules and regulations promulgated by the Department | 26 |
| thereunder.
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| f. To confer regularly as necessary or desirable and not
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| less than once
every month with the Lottery Control Board on | 3 |
| the operation and administration
of the Lottery; to make | 4 |
| available for inspection by the Board or any member
of the | 5 |
| Board, upon request, all books, records, files, and other | 6 |
| information
and documents of his office; to advise the Board | 7 |
| and recommend such rules
and regulations and such other matters | 8 |
| as he deems necessary and advisable
to improve the operation | 9 |
| and administration of the lottery.
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| g. To enter into contracts for the operation of the | 11 |
| lottery, or any part
thereof, and into contracts for the | 12 |
| promotion of the lottery on behalf of
the Department with any | 13 |
| person, firm or corporation, to perform any of the
functions | 14 |
| provided for in this Act or the rules and regulations | 15 |
| promulgated
thereunder. The Department shall not expend State | 16 |
| funds on a contractual
basis for such functions unless those | 17 |
| functions and expenditures are expressly
authorized by the | 18 |
| General Assembly.
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| h. To enter into an agreement or agreements with the | 20 |
| management of state
lotteries operated pursuant to the laws of | 21 |
| other states for the purpose of
creating and operating a | 22 |
| multi-state lottery game wherein a separate and
distinct prize | 23 |
| pool would be combined to award larger prizes to the public
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| than could be offered by the several state lotteries, | 25 |
| individually. No
tickets or shares offered in connection with a | 26 |
| multi-state lottery game
shall be sold within the State of |
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| Illinois, except those offered by and
through the Department. | 2 |
| No such agreement shall purport to pledge the full
faith and | 3 |
| credit of the State of Illinois, nor shall the Department | 4 |
| expend
State funds on a contractual basis in connection with | 5 |
| any such game unless
such expenditures are expressly authorized | 6 |
| by the General Assembly,
provided, however, that in the event | 7 |
| of error or omission by the Illinois
State Lottery in the | 8 |
| conduct of the game, as determined by the multi-state
game | 9 |
| directors, the Department shall be authorized to pay a prize | 10 |
| winner or
winners the lesser of a disputed prize or $1,000,000, | 11 |
| any such payment to
be made solely from funds appropriated for | 12 |
| game prize purposes. The
Department shall be authorized to | 13 |
| share in the ordinary operating expenses
of any such | 14 |
| multi-state lottery game, from funds appropriated by the | 15 |
| General Assembly,
and in the event the multi-state game control | 16 |
| offices are physically
located within the State of Illinois, | 17 |
| the Department is authorized to
advance start-up operating | 18 |
| costs not to exceed $150,000, subject to
proportionate | 19 |
| reimbursement of such costs by the other participating state
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| lotteries. The Department shall be authorized to share | 21 |
| proportionately in
the costs of establishing a liability | 22 |
| reserve fund from funds appropriated
by the General Assembly. | 23 |
| The Department is authorized to transfer prize
award funds | 24 |
| attributable to Illinois sales of multi-state lottery game | 25 |
| tickets to
the multi-state control office, or its designated | 26 |
| depository, for deposit
to such game pool account or accounts |
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| as may be established by the
multi-state game directors, the | 2 |
| records of which account or accounts shall
be available at all | 3 |
| times for inspection in an audit by the Auditor General
of | 4 |
| Illinois and any other auditors pursuant to the laws of the | 5 |
| State of
Illinois.
No multi-state game prize awarded to a | 6 |
| nonresident of Illinois, with
respect to a ticket or share | 7 |
| purchased in a state other than the State of
Illinois, shall be | 8 |
| deemed to be a prize awarded under this Act for the
purpose of | 9 |
| taxation under the Illinois Income Tax Act.
All of the net | 10 |
| revenues accruing from the sale of multi-state lottery
tickets | 11 |
| or shares shall be transferred into the Lottery Supports | 12 |
| Schools Fund Common School Fund pursuant
to Section 7.2.
The | 13 |
| Department shall promulgate such rules as may be appropriate to
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| implement the provisions of this Section.
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| i. To make a continuous study and investigation of (1) the | 16 |
| operation and
the administration of similar laws which may be | 17 |
| in effect in other states
or countries, (2) any literature on | 18 |
| the subject which from time to time
may be published or | 19 |
| available, (3) any Federal laws which may affect the
operation | 20 |
| of the
lottery, and (4) the reaction of Illinois citizens to | 21 |
| existing and potential
features of the lottery with a view to | 22 |
| recommending or effecting changes
that will tend to serve the | 23 |
| purposes of this Act.
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| j. To report monthly to the State Treasurer and the Lottery | 25 |
| Control Board
a full and complete statement of lottery | 26 |
| revenues, prize disbursements and
other expenses for each month |
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| and the amounts to be transferred to the Common
School Fund | 2 |
| pursuant to Section 7.2 or such other funds as are otherwise
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| authorized by Section 21.2 of this Act, and to
make an annual | 4 |
| report, which shall include a full and complete statement
of | 5 |
| lottery revenues, prize disbursements and other expenses, to | 6 |
| the Governor
and the Board. All reports required by this | 7 |
| subsection shall be public
and copies of all
such reports shall | 8 |
| be sent to the Speaker of the House, the President of
the | 9 |
| Senate, and the minority leaders of both houses.
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| (Source: P.A. 94-776, eff. 5-19-06.)
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| (20 ILCS 1605/19) (from Ch. 120, par. 1169)
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| Sec. 19. Period for claiming prizes; unclaimed prizes. The | 13 |
| Division shall establish an appropriate period for the
claiming | 14 |
| of prizes for each lottery game offered. Each claim period | 15 |
| shall
be stated in game rules and written play
instructions | 16 |
| issued by the Superintendent in accordance with Section 7.1 of
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| this Act. Written play instructions shall be made available to | 18 |
| all players
through sales agents licensed to sell game tickets | 19 |
| or shares.
Prizes for lottery games which involve the purchase | 20 |
| of a physical lottery
ticket may be claimed only by | 21 |
| presentation of a valid winning lottery
ticket that matches | 22 |
| validation records on file with the Lottery; no
claim may be | 23 |
| honored which is based on the assertion that the ticket was
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| lost or stolen. No lottery ticket which has been altered, | 25 |
| mutilated, or
fails to pass validation tests shall be deemed to |
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| be a winning ticket.
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| If no claim
is made for the money within the established | 3 |
| claim period, the prize may
be included in the prize pool of | 4 |
| such special drawing or drawings as the
Division may, from time | 5 |
| to time, designate. Unclaimed
multi-state game prize money may | 6 |
| be included in the multi-state
prize
pool for such special | 7 |
| drawing or drawings as the multi-state game directors
may, from | 8 |
| time to time, designate. Any bonuses offered by the Department
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| to sales agents who sell winning tickets or shares shall be
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| payable to such agents regardless of whether or not the prize | 11 |
| money on the
ticket or share is claimed, provided that the | 12 |
| agent can be identified as
the vendor of the winning ticket or | 13 |
| share, and
that the winning ticket or share was sold on or | 14 |
| after January 1, 1984.
All unclaimed prize money not included | 15 |
| in the prize pool of a special
drawing shall be transferred to | 16 |
| the Lottery Supports Schools Fund Common School Fund .
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| (Source: P.A. 94-776, eff. 5-19-06.)
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| (20 ILCS 1605/20) (from Ch. 120, par. 1170)
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| Sec. 20. State Lottery Fund.
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| (a) There is created in the State Treasury a special fund | 21 |
| to be
known as the "State Lottery Fund". Such fund shall | 22 |
| consist of all revenues
received from (1) the sale of lottery | 23 |
| tickets or shares, (net of
commissions, fees
representing those | 24 |
| expenses that are directly proportionate to the
sale of tickets | 25 |
| or shares at the agent location, and prizes of less
than
$600 |
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| which
have been validly paid at the agent
level), (2) | 2 |
| application fees,
and (3) all other sources including moneys | 3 |
| credited or transferred thereto
from
any other fund
or source | 4 |
| pursuant to law. Interest earnings of the State Lottery Fund
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| shall be credited to the Lottery Supports Schools Fund Common | 6 |
| School Fund .
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| (b) The receipt and distribution of moneys under Section | 8 |
| 21.5 of this Act shall be in accordance with Section 21.5.
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| (c) The receipt and distribution of moneys under Section | 10 |
| 21.6 of this Act shall be in accordance with Section 21.6. | 11 |
| (d) The receipt and distribution of moneys under Section | 12 |
| 21.7 of this Act shall be in accordance with Section 21.7.
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| (e)
(d) The receipt and distribution of moneys under | 14 |
| Section 21.8
21.7 of this Act shall be in accordance with | 15 |
| Section 21.8
21.7 .
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| (Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05; | 17 |
| 95-331, eff. 8-21-07; 95-673, eff. 10-11-07; 95-674, eff. | 18 |
| 10-11-07; revised 12-5-07.)
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| (20 ILCS 1605/20.1) (from Ch. 120, par. 1170.1)
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| Sec. 20.1. Department account.
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| (a) The Department is authorized to pay validated prizes
up | 22 |
| to $25,000 from funds held by the Department in an account | 23 |
| separate and
apart from all public moneys of the State. Moneys | 24 |
| in this account shall be
administered by the Director | 25 |
| exclusively for the purposes of issuing payments
to prize |
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| winners authorized by this Section. Moneys in this account | 2 |
| shall be
deposited by the Department into the Public | 3 |
| Treasurers' Investment Pool
established under Section 17 of the | 4 |
| State Treasurer Act. The Department shall
submit vouchers from | 5 |
| time to time as needed for reimbursement of this account
from | 6 |
| moneys appropriated for prizes from the State Lottery Fund. | 7 |
| Investment
income earned from this account shall be deposited | 8 |
| monthly by the Department
into the Lottery Supports Schools | 9 |
| Fund Common School Fund . The Department shall file quarterly | 10 |
| fiscal
reports specifying the activity of this account as | 11 |
| required under Section 16 of
the State Comptroller Act, and | 12 |
| shall file quarterly with the General Assembly,
the Auditor | 13 |
| General, the Comptroller, and the State Treasurer a report
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| indicating the costs associated with this activity.
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| (b) The Department is authorized to enter into an | 16 |
| interagency agreement
with the Office of the Comptroller or any | 17 |
| other State agency to establish
responsibilities, duties, and | 18 |
| procedures for complying with the Comptroller's
Offset System | 19 |
| under Section 10.05 of the State Comptroller Act. All federal
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| and State tax reporting and withholding requirements relating | 21 |
| to prize winners
under this Section shall be the responsibility | 22 |
| of the Department. Moneys from
this account may not be used to | 23 |
| pay amounts to deferred prize winners. Moneys
may not be | 24 |
| transferred from the State Lottery Fund to this account for | 25 |
| payment
of prizes under this Section until procedures are | 26 |
| implemented to comply with
the Comptroller's Offset System and |
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| sufficient internal controls are in place
to validate prizes.
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| (Source: P.A. 87-1197; 88-676, eff. 12-14-94.)
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| (20 ILCS 1605/20.2 new)
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| Sec. 20.2. Lottery Supports Schools Fund. There is created | 5 |
| a Fund to be known as the Lottery Supports Schools Fund, which | 6 |
| is a non-appropriated trust fund held outside of the State | 7 |
| treasury. The Fund shall consist of moneys paid into it by the | 8 |
| Division as provided in this Law. The Division shall certify | 9 |
| each month to the State Board of Education the proportion of | 10 |
| lottery sales in each school district in relation to statewide | 11 |
| lottery sales. The moneys in the Lottery Supports Schools Fund | 12 |
| must be distributed monthly by the State Board of Education to | 13 |
| each school district based upon that school district's portion | 14 |
| of statewide lottery sales. | 15 |
| (20 ILCS 1605/27.5 new) | 16 |
| Sec. 27.5. No rulemaking authority. Notwithstanding any | 17 |
| other provision of this Law or any other rulemaking authority | 18 |
| that may exist, on and after the effective date of this | 19 |
| amendatory Act of the 95th General Assembly, neither the | 20 |
| Governor nor any agency or agency head under the jurisdiction | 21 |
| of the Governor has any authority to make or promulgate rules | 22 |
| to implement or enforce the provisions of this Law. If, | 23 |
| however, the Governor believes that rules are necessary to | 24 |
| implement or enforce the provisions of this Law, the Governor |
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| may suggest rules to the General Assembly by filing them with | 2 |
| the Clerk of the House and Secretary of the Senate and by | 3 |
| requesting that the General Assembly authorize such rulemaking | 4 |
| by law, enact those suggested rules into law, or take any other | 5 |
| appropriate action in the General Assembly's discretion. | 6 |
| Nothing contained in this Law shall be interpreted to grant | 7 |
| rulemaking authority under any other Illinois statute where | 8 |
| such authority is not otherwise explicitly given. For the | 9 |
| purposes of this Law, "rules" is given the meaning contained in | 10 |
| Section 1-70 of the Illinois Administrative Procedure Act, and | 11 |
| "agency" and "agency head" are given the meanings contained in | 12 |
| Sections 1-20 and 1-25 of the Illinois Administrative Procedure | 13 |
| Act to the extent that such definitions apply to agencies or | 14 |
| agency heads under the jurisdiction of the Governor. | 15 |
| Section 10. The School Code is amended by adding Section | 16 |
| 2-3.148 as follows: | 17 |
| (105 ILCS 5/2-3.148 new)
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| Sec. 2-3.148. Distributions from the Lottery Supports | 19 |
| Schools Fund. The State Board of Education shall make | 20 |
| distributions from the Lottery Supports Schools Fund as | 21 |
| provided in Section 20.2 of the Illinois Lottery Law; however, | 22 |
| the State Board of Education shall not take into account these | 23 |
| distributions when computing State aid under Section 18-8.05 of | 24 |
| this Code. |
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| Notwithstanding any other rulemaking authority that may | 2 |
| exist, neither the Governor nor any agency or agency head under | 3 |
| the jurisdiction of the Governor has any authority to make or | 4 |
| promulgate rules to implement or enforce the provisions of this | 5 |
| amendatory Act of the 95th General Assembly. If, however, the | 6 |
| Governor believes that rules are necessary to implement or | 7 |
| enforce the provisions of this amendatory Act of the 95th | 8 |
| General Assembly, the Governor may suggest rules to the General | 9 |
| Assembly by filing them with the Clerk of the House and the | 10 |
| Secretary of the Senate and by requesting that the General | 11 |
| Assembly authorize such rulemaking by law, enact those | 12 |
| suggested rules into law, or take any other appropriate action | 13 |
| in the General Assembly's discretion. Nothing contained in this | 14 |
| amendatory Act of the 95th General Assembly shall be | 15 |
| interpreted to grant rulemaking authority under any other | 16 |
| Illinois statute where such authority is not otherwise | 17 |
| explicitly given. For the purposes of this amendatory Act of | 18 |
| the 95th General Assembly, "rules" is given the meaning | 19 |
| contained in Section 1-70 of the Illinois Administrative | 20 |
| Procedure Act, and "agency" and "agency head" are given the | 21 |
| meanings contained in Sections 1-20 and 1-25 of the Illinois | 22 |
| Administrative Procedure Act to the extent that such | 23 |
| definitions apply to agencies or agency heads under the | 24 |
| jurisdiction of the Governor.
| 25 |
| Section 99. Effective date. This Act takes effect upon |
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| becoming law.".
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