HB4148sam003 97TH GENERAL ASSEMBLY

Sen. John J. Cullerton

Filed: 5/25/2012

09700HB4148sam003 LRB097 17765 AMC 70198 a

AMENDMENT TO HOUSE BILL 4148

AMENDMENT NO. ______. Amend House Bill 4148, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Administrative Procedure Act is amended by changing Section 5-45 as follows:

(5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)

Sec. 5-45. Emergency rulemaking.

(a) "Emergency" means the existence of any situation that any agency finds reasonably constitutes a threat to the public interest, safety, or welfare.

(b) If any agency finds that an emergency exists that requires adoption of a rule upon fewer days than is required by Section 5-40 and states in writing its reasons for that finding, the agency may adopt an emergency rule without prior notice or hearing upon filing a notice of emergency rulemaking with the Secretary of State under Section 5-70. The notice shall include the text of the emergency rule and shall be published in the Illinois Register. Consent orders or other court orders adopting settlements negotiated by an agency may be adopted under this Section. Subject to applicable constitutional or statutory provisions, an emergency rule becomes effective immediately upon filing under Section 5-65 or at a stated date less than 10 days thereafter. The agency's finding and a statement of the specific reasons for the finding shall be filed with the rule. The agency shall take reasonable and appropriate measures to make emergency rules known to the persons who may be affected by them.

(c) An emergency rule may be effective for a period of not longer than 150 days, but the agency's authority to adopt an identical rule under Section 5-40 is not precluded. No emergency rule may be adopted more than once in any 24 month period, except that this limitation on the number of emergency rules that may be adopted in a 24 month period does not apply to (i) emergency rules that make additions to and deletions from the Drug Manual under Section 5-5.16 of the Illinois Public Aid Code or the generic drug formulary under Section 3.14 of the Illinois Food, Drug and Cosmetic Act, (ii) emergency rules adopted by the Pollution Control Board before July 1, 1997 to implement portions of the Livestock Management Facilities Act, (iii) emergency rules adopted by the Illinois Department of Public Health under subsections (a) through (i) of Section 2 of the Department of Public Health Act when necessary to protect the public's health, (iv) emergency rules adopted pursuant to subsection (n) of this Section, or (v) emergency rules adopted pursuant to subsection (o) of this Section. Two or more emergency rules having substantially the same purpose and effect shall be deemed to be a single rule for purposes of this Section.

(d) In order to provide for the expeditious and timely implementation of the State's fiscal year 1999 budget, emergency rules to implement any provision of Public Act 90-587 or 90-588 or any other budget initiative for fiscal year 1999 may be adopted in accordance with this Section by the agency charged with administering that provision or initiative, except that the 24-month limitation on the adoption of emergency rules and the provisions of Sections 5-115 and 5-125 do not apply to rules adopted under this subsection (d). The adoption of emergency rules authorized by this subsection (d) shall be deemed to be necessary for the public interest, safety, and welfare.

(e) In order to provide for the expeditious and timely implementation of the State's fiscal year 2000 budget, emergency rules to implement any provision of this amendatory Act of the 91st General Assembly or any other budget initiative for fiscal year 2000 may be adopted in accordance with this Section by the agency charged with administering that provision or initiative, except that the 24-month limitation on the adoption of emergency rules and the provisions of Sections 5-115 and 5-125 do not apply to rules adopted under this subsection (e). The adoption of emergency rules authorized by this subsection (e) shall be deemed to be necessary for the public interest, safety, and welfare.

(f) In order to provide for the expeditious and timely implementation of the State's fiscal year 2001 budget, emergency rules to implement any provision of this amendatory Act of the 91st General Assembly or any other budget initiative for fiscal year 2001 may be adopted in accordance with this Section by the agency charged with administering that provision or initiative, except that the 24-month limitation on the adoption of emergency rules and the provisions of Sections 5-115 and 5-125 do not apply to rules adopted under this subsection (f). The adoption of emergency rules authorized by this subsection (f) shall be deemed to be necessary for the public interest, safety, and welfare.

(g) In order to provide for the expeditious and timely implementation of the State's fiscal year 2002 budget, emergency rules to implement any provision of this amendatory Act of the 92nd General Assembly or any other budget initiative for fiscal year 2002 may be adopted in accordance with this Section by the agency charged with administering that provision or initiative, except that the 24-month limitation on the adoption of emergency rules and the provisions of Sections 5-115 and 5-125 do not apply to rules adopted under this subsection (g). The adoption of emergency rules authorized by this subsection (g) shall be deemed to be necessary for the public interest, safety, and welfare.

(h) In order to provide for the expeditious and timely implementation of the State's fiscal year 2003 budget, emergency rules to implement any provision of this amendatory Act of the 92nd General Assembly or any other budget initiative for fiscal year 2003 may be adopted in accordance with this Section by the agency charged with administering that provision or initiative, except that the 24-month limitation on the adoption of emergency rules and the provisions of Sections 5-115 and 5-125 do not apply to rules adopted under this subsection (h). The adoption of emergency rules authorized by this subsection (h) shall be deemed to be necessary for the public interest, safety, and welfare.

(i) In order to provide for the expeditious and timely implementation of the State's fiscal year 2004 budget, emergency rules to implement any provision of this amendatory Act of the 93rd General Assembly or any other budget initiative for fiscal year 2004 may be adopted in accordance with this Section by the agency charged with administering that provision or initiative, except that the 24-month limitation on the adoption of emergency rules and the provisions of Sections 5-115 and 5-125 do not apply to rules adopted under this subsection (i). The adoption of emergency rules authorized by this subsection (i) shall be deemed to be necessary for the public interest, safety, and welfare.

(j) In order to provide for the expeditious and timely implementation of the provisions of the State's fiscal year 2005 budget as provided under the Fiscal Year 2005 Budget Implementation (Human Services) Act, emergency rules to implement any provision of the Fiscal Year 2005 Budget Implementation (Human Services) Act may be adopted in accordance with this Section by the agency charged with administering that provision, except that the 24-month limitation on the adoption of emergency rules and the provisions of Sections 5-115 and 5-125 do not apply to rules adopted under this subsection (j). The Department of Public Aid may also adopt rules under this subsection (j) necessary to administer the Illinois Public Aid Code and the Children's Health Insurance Program Act. The adoption of emergency rules authorized by this subsection (j) shall be deemed to be necessary for the public interest, safety, and welfare.

(k) In order to provide for the expeditious and timely implementation of the provisions of the State's fiscal year 2006 budget, emergency rules to implement any provision of this amendatory Act of the 94th General Assembly or any other budget initiative for fiscal year 2006 may be adopted in accordance with this Section by the agency charged with administering that provision or initiative, except that the 24-month limitation on the adoption of emergency rules and the provisions of Sections 5-115 and 5-125 do not apply to rules adopted under this subsection (k). The Department of Healthcare and Family Services may also adopt rules under this subsection (k) necessary to administer the Illinois Public Aid Code, the Senior Citizens and Disabled Persons Property Tax Relief and Pharmaceutical Assistance Act, the Senior Citizens and Disabled Persons Prescription Drug Discount Program Act (now the Illinois Prescription Drug Discount Program Act), and the Children's Health Insurance Program Act. The adoption of emergency rules authorized by this subsection (k) shall be deemed to be necessary for the public interest, safety, and welfare.

(l) In order to provide for the expeditious and timely implementation of the provisions of the State's fiscal year 2007 budget, the Department of Healthcare and Family Services may adopt emergency rules during fiscal year 2007, including rules effective July 1, 2007, in accordance with this subsection to the extent necessary to administer the Department's responsibilities with respect to amendments to the State plans and Illinois waivers approved by the federal Centers for Medicare and Medicaid Services necessitated by the requirements of Title XIX and Title XXI of the federal Social Security Act. The adoption of emergency rules authorized by this subsection (l) shall be deemed to be necessary for the public interest, safety, and welfare.

(m) In order to provide for the expeditious and timely implementation of the provisions of the State's fiscal year 2008 budget, the Department of Healthcare and Family Services may adopt emergency rules during fiscal year 2008, including rules effective July 1, 2008, in accordance with this subsection to the extent necessary to administer the Department's responsibilities with respect to amendments to the State plans and Illinois waivers approved by the federal Centers for Medicare and Medicaid Services necessitated by the requirements of Title XIX and Title XXI of the federal Social Security Act. The adoption of emergency rules authorized by this subsection (m) shall be deemed to be necessary for the public interest, safety, and welfare.

(n) In order to provide for the expeditious and timely implementation of the provisions of the State's fiscal year 2010 budget, emergency rules to implement any provision of this amendatory Act of the 96th General Assembly or any other budget initiative authorized by the 96th General Assembly for fiscal year 2010 may be adopted in accordance with this Section by the agency charged with administering that provision or initiative. The adoption of emergency rules authorized by this subsection (n) shall be deemed to be necessary for the public interest, safety, and welfare. The rulemaking authority granted in this subsection (n) shall apply only to rules promulgated during Fiscal Year 2010.

(o) In order to provide for the expeditious and timely implementation of the provisions of the State's fiscal year 2011 budget, emergency rules to implement any provision of this amendatory Act of the 96th General Assembly or any other budget initiative authorized by the 96th General Assembly for fiscal year 2011 may be adopted in accordance with this Section by the agency charged with administering that provision or initiative. The adoption of emergency rules authorized by this subsection (o) is deemed to be necessary for the public interest, safety, and welfare. The rulemaking authority granted in this subsection (o) applies only to rules promulgated on or after the effective date of this amendatory Act of the 96th General Assembly through June 30, 2011.

(p) In order to provide for the expeditious and timely implementation of Internet gaming, the Division of Internet Gaming may adopt emergency rules to implement the provisions of Section 7.18 of the Illinois Lottery Law. The adoption of emergency rules authorized by this subsection (p) shall be deemed to be necessary for the public interest, safety, and welfare.

(Source: P.A. 95-12, eff. 7-2-07; 95-331, eff. 8-21-07; 96-45, eff. 7-15-09; 96-958, eff. 7-1-10; 96-1500, eff. 1-18-11.)

Section 10. The Illinois Lottery Law is amended by changing Section 2 and by adding Section 7.18 as follows:

(20 ILCS 1605/2) (from Ch. 120, par. 1152)

Sec. 2. (a) This Act is enacted to implement and establish within the State a lottery to be conducted by the State through the Department. The entire net proceeds of the Lottery are to be used for the support of the State's Common School Fund, except as provided in subsection (o) of Section 9.1 and Sections 21.2, 21.5, 21.6, 21.7, and 21.8. The General Assembly finds that it is in the public interest for the Department to conduct the functions of the Lottery with the assistance of a private manager under a management agreement overseen by the Department. The Department shall be accountable to the General Assembly and the people of the State through a comprehensive system of regulation, audits, reports, and enduring operational oversight. The Department's ongoing conduct of the Lottery through a management agreement with a private manager shall act to promote and ensure the integrity, security, honesty, and fairness of the Lottery's operation and administration. It is the intent of the General Assembly that the Department shall conduct the Lottery with the assistance of a private manager under a management agreement at all times in a manner consistent with 18 U.S.C. 1307(a)(1), 1307(b)(1), 1953(b)(4).

(b) It is further the intent of the General Assembly that the Division of Internet Gaming of the Department shall conduct Internet wagering at all times in a manner consistent with the applicable provisions of State and federal law pursuant to Section 7.18 of this Law.

(Source: P.A. 95-331, eff. 8-21-07; 95-673, eff. 10-11-07; 95-674, eff. 10-11-07; 95-876, eff. 8-21-08; 96-34, eff. 7-13-09.)

(20 ILCS 1605/7.18 new)

Sec. 7.18. Internet gaming; Division of Internet Gaming; powers.

(a) The General Assembly finds that the Internet has become an integral part of everyday life for a significant number of Illinois residents, not only in regards to their professional life, but also in regards to personal business and communication. Internet wagering on games of chance and games of skill is a core form of entertainment for millions of individuals worldwide. In multiple jurisdictions across the world, Internet gaming is legal, regulated, and taxed, generating billions of dollars in revenue for governments.

The General Assembly further finds that Illinois residents participate in illegal on-line gambling on unregulated Internet websites operated by offshore operators who are not subject to regulation or taxation in the United States. Neither federal nor Illinois laws provide sufficient consumer protections for Illinois residents who play games of chance or skill on these illegal websites, nor does the State realize any benefits from the revenues generated by illegal on-line gaming.

On September 20, 2011, the United States Department of Justice issued an opinion reversing its previous interpretation of the federal Wire Act, 18 U.S.C. 1804, allowing states, subject to certain restrictions, to legalize and regulate Internet gaming and capture the revenue for the benefit of state governments. The Department of Justice's opinion was prompted in part by a request made by the Department pursuant to Public Act 96-34. In order to protect Illinois residents who wager on games of chance and skill through the Internet, and to capture revenues generated from Internet gaming, it is in the best interest of the State and its citizens to regulate this activity by authorizing and establishing a secure, responsible, fair, and legal system of Internet gaming that complies with the United States Department of Justice's September 2011 opinion concerning the federal Wire Act. It is also in the best interest of the State to establish an Internet gaming platform consistent with the provisions of this Section to ensure that Illinois is not precluded from reaping the benefits of Internet gaming as contemplated by proposed federal legislation pending before the United States Senate.

The General Assembly additionally finds that pursuant to the federal Unlawful Internet Gambling Enforcement Act of 2006 (UIEGA), 31 U.S.C. 5301, the provisions of this Section prescribe a lawful exemption to UIEGA and specifically authorize use of the Internet to place, receive, or otherwise knowingly transmit a bet or wager where Internet wagering complies with this Section and rules adopted pursuant to this Section.

(b) As used in this Section:

"Internet" means the international computer network of interoperable packet-switched data networks, inclusive of such additional technological platforms as mobile, satellite, and other electronic distribution channels approved by the Division.

"Internet game" means any variation or composite of an authorized game that is offered through the Internet so long as such games, or variations or composites, are found suitable for use by the Division after an appropriate test or experimental period. "Internet game" also includes gaming tournaments conducted via the Internet in which players compete against one another in one or more of the games authorized in this definition or by the Division or in approved variations or composites as authorized by the Division.

"Internet gaming platform" means an interactive set of related data networks controlled by the Division that may be accessed by licensed Internet gaming affiliates for the purpose of offering wagering on Internet games to authorized participants.

"Internet wagering" means the placing of wagers using the Division's Internet gaming platform through which licensed Internet gaming affiliates may offer Internet games to persons who have established an Internet wagering account with the Division and who are either physically present in Illinois when placing a wager or otherwise permitted to place a wager by law. The intermediate routing of electronic data in connection with Internet wagering shall not determine the location or locations in which a wager is initiated, received, or otherwise made.

"Internet wagering account" means an electronic ledger wherein the following types of transactions relative to the Internet wager system are recorded: (i) deposits; (ii) withdrawals; (iii) amounts wagered; (iv) amounts paid on winning wagers; (v) service or other transaction-related charges authorized by the patron; and (vi) adjustments to the account.

"Licensed Internet gaming affiliate" means an individual who is licensed by the Division to offer wagering on Internet games to authorized participants using the Division's Internet gaming platform.

(c) The Division of Internet Gaming is established within the Department of the Lottery, and is authorized to establish an Internet gaming platform that may be accessed by licensed Internet gaming affiliates in order to offer wagering on Internet games to individuals who are (1) 21 years of age or older and (2) physically located within the State of Illinois or otherwise permitted to place wagers as provided by law. To the extent consistent with the provisions of this Section, the Division shall be subject to and governed by provisions of this Article and all of the laws and rules applicable to the Department. The Division shall not be subject to any private management agreement established pursuant to Section 9.1 of this Act. The Division of Internet Gaming is also authorized to enter into agreements with other state gaming entities for the purpose of offering multistate Internet games to the extent consistent with State and federal laws. The Division shall not offer Internet wagering on any sporting event or contest, unless doing so is consistent with State and federal laws. The Division shall be funded with moneys appropriated to the Department of the Lottery, as well as from the proceeds of Internet gaming pursuant to subsection (l) of this Section.

(d) The Division of Internet Gaming shall only offer wagering on Internet games through the use of licensed Internet gaming affiliates and shall not directly offer wagering on Internet games to authorized participants. Licensed Internet gaming affiliates shall not offer wagering on Internet games to authorized participants unless such wagering is conducted using the Division's Internet gaming platform. The following individuals shall be eligible for licensure by the Division as licensed Internet gaming affiliates: (i) any person who holds a valid and unrevoked owners license issued pursuant to the Riverboat Gambling Act; (ii) any person who holds a valid and unrevoked organization license issued pursuant to the Illinois Horse Racing Act of 1975; and (iii) any person who holds a valid and unrevoked advance deposit wagering license issued pursuant to the Illinois Horse Racing Act of 1975.

A qualified person may apply to the Division for an Internet gaming affiliate license to offer wagering on Internet games using the Division's Internet gaming platform as provided in this Act. The application shall be made on forms provided by the Division and shall contain such information as the Division prescribes, including, but not limited to, detailed information regarding the ownership and management of the applicant and detailed personal information regarding the applicant. An incomplete application shall be cause for denial of a license by the Division.

A fee of $5,000,000 shall be paid to the Division along with the application for licensure. All information, records, interviews, reports, statements, memoranda, or other data supplied to or used by the Division in the course of its review or investigation of an application for an Internet gaming affiliate license or a renewal under this Section shall be privileged, strictly confidential, and used only for the purpose of evaluating an applicant for a license or a renewal. A person who knowingly makes a false statement on an application is guilty of a Class A misdemeanor.

An application shall be filed and considered in accordance with the rules of the Division. The Division shall adopt rules to effectuate the provisions of this subsection within 30 days after the effective date of this amendatory Act of the 97th General Assembly.

(e) The Division shall have all powers necessary or desirable to effectuate the provisions of this Section, including, but not limited to, the power to:

(1) establish an Internet gaming platform for the purpose of offering wagering on Internet games by licensed Internet gaming affiliates;

(2) establish procedures for use of and access to the Division's Internet gaming platform by licensed Internet gaming affiliates;

(3) accept wagers on Internet games offered on the Division's Internet gaming platform;

(4) pay prizes to winners of Internet games;

(5) enter into contracts with any person, firm, or corporation, including, but not limited to, contracts with Internet gaming hub software providers, age and identification software providers, geolocation software providers, and other vendors that the Division deems necessary for the establishment and maintenance of the Internet gaming platform;

(6) acquire or lease real property and make improvements thereon and acquire by lease or by purchase personal property, including, but not limited to:

(A) computers;

(B) mechanical, electronic, and online equipment and terminals; and

(C) intangible property, including, but not limited to, computer programs, software, and systems; and

(7) hold copyrights, trademarks, service marks, and other intellectual property; pursuant to Section 7 of the Illinois Freedom of Information Act, such intellectual property shall be exempt from disclosure; and

(8) enforce any rights held under paragraph (7) of this subsection.

(f) The Division shall adopt such rules governing the administration and conduct of Internet gaming as it deems necessary to carry out the purpose of this Section. These rules shall be subject to the provisions of the Illinois Administrative Procedure Act and may include, but shall not be limited to:

(1) the types of Internet games to be offered;

(2) price points for Internet games;

(3) player fees and percentage of rake for Internet games;

(4) player fees and percentage of rake payable to licensed Internet gaming affiliates;

(5) forms of payment accepted for Internet games;

(6) the number, type, and amount of prizes for Internet games;

(7) the method of selecting winners and validating winnings;

(8) the manner and time for payment of prizes, winnings, and sums due to licensed Internet gaming affiliates;

(9) the frequency of Internet games;

(10) responsible gaming;

(11) the Internet gaming platform;

(12) such other matters necessary or desirable for the efficient and economical operation and administration of Internet gaming and for the convenience of authorized Internet gaming participants and licensed Internet gaming affiliates.

The Division shall also issue written game rules, play instructions, directives, operations manuals, brochures, or any other publications necessary to conduct specific Internet games, as authorized by rule by the Division. Except for materials that the Division deems to be intellectual property, written game rules, instructions, directives, operations manuals, brochures, or other game publications issued by the Division that relate to specific Internet games offered by the Division shall be posted on the Division's Internet website and shall also be maintained as public records in the Division's principal office, and made available for public inspection and copying, but shall be exempt from the rulemaking procedures of the Illinois Administrative Procedure Act.

(g) Notwithstanding any law to the contrary, the Superintendent of the Lottery shall hire an Executive Director who shall be responsible to the Superintendent and shall serve subject only to removal by the Superintendent for incompetence, neglect of duty, or malfeasance in office. The Executive Director shall be responsible for the supervision and direction of the Division staff and for the necessary administrative activities of the Division, subject only to the direction and approval of the Superintendent notwithstanding any law to the contrary.

Notwithstanding any law to the contrary, the Executive Director shall hire and employ employees as may be necessary to carry out the provisions of this Law or to perform the duties and exercise the powers conferred by law upon the Division. All employees of the Division shall receive the compensation fixed by the Executive Director, subject only to the Superintendent. The Superintendent, Executive Director, and Division employees shall be reimbursed for all actual and necessary traveling and other expenses and disbursements necessarily incurred or made by them in the discharge of their official duties. The Superintendent and Executive Director may also incur necessary expenses for office space, furniture, stationery, printing, operations, and other incidental expenses.

The Executive Director shall report monthly to the Superintendent, the State Treasurer, and the Lottery Control Board a full and complete statement of Internet gaming revenues, prize disbursements, payments to licensed Internet gaming affiliates, and other expenses for each month and the amounts to be transferred to the State Lottery Fund pursuant to this Section. The Executive Director shall also make an annual report, which shall include a full and complete statement of Internet gaming revenues, prize disbursements, payments to licensed Internet gaming affiliates, and other expenses, to the Superintendent, the Governor, and the Board. All reports required by this subsection shall be public and copies of all such reports shall be sent to the Speaker of the House of Representatives, the President of the Senate, the Minority Leader of the House of Representatives, and the Minority Leader of the Senate.

The Executive Director shall make a continuous study and investigation of: (i) the operation and the administration of similar Internet gaming laws that may be in effect in other states or countries; (ii) any literature on Internet gaming that from time to time may be published or available; (iii) any federal laws that may affect the operation of Internet gaming; and (iv) the reaction of Illinois citizens to existing and potential features of Internet gaming with a view to recommending or effecting changes that will tend to serve the purposes of this Section.

(h) The Chief Procurement Officer for the needs of State agencies (Chief Procurement Officer), in consultation with the Division, shall procure one or more of the following private vendors: (i) Internet gaming hub software providers; (ii) age and identification software providers; and (iii) geolocation software providers. Except for Section 26-160 and Article 50 of the Illinois Procurement Code, the procurement of private vendors for Internet gaming hub software, age and identification software and geolocation software is subject to administration by the Chief Procurement Officer, but is not subject to the requirements of the Illinois Procurement Code. Within 45 days after the effective date of this amendatory Act of the 97th General Assembly, the Chief Procurement Officer shall establish a process for awarding contracts under this subsection that is consistent with the requirements of 20-35 of the Illinois Procurement Code. The Chief Procurement Officer shall make the process available on the Division's Internet website and shall publish the process in the Illinois Procurement Bulletin. Contracts for the procurement of services from Internet gaming hub software providers, age and identification software providers, and geolocation software providers shall be based upon criteria determined by the Chief Procurement Officer and the Division. The procurement of vendors pursuant to this subsection shall be completed within 90 days after the effective date of this amendatory Act of the 97th General Assembly.

(i) The Division's Internet gaming platform shall provide one or more mechanisms to verify that a participant is 21 years of age or older and that wagering on Internet games is limited to transactions that are initiated and received or otherwise made exclusively within the State of Illinois. A participant must satisfy the verification requirements before he or she may establish an Internet gaming account and wager on Internet games offered by licensed Internet gaming affiliates using the Division's Internet gaming platform. At such a time that a legally compliant mechanism is established to permit wagering on Internet games by individuals physically located outside of the State, the Division shall adopt rules and procedures to allow and govern wagering by those individuals. By rule, the Division shall establish funding procedures for Internet gaming accounts and shall provide a mechanism to prevent the unauthorized use of Internet gaming accounts. By rule, the Division shall also establish procedures to detect and prevent fraud and collusion in Internet gaming offered by licensed Internet gaming affiliates using the Division's Internet gaming platform. If any participant in Internet gaming violates any provisions of this Section or rule adopted by the Division, then the participant's winnings shall be forfeited. Any forfeited winnings shall be deposited into the State Lottery Fund.

The following persons shall not be authorized to establish Internet gaming accounts or wager on Internet games offered by licensed Internet gaming affiliates using the Division's Internet gaming platform: (i) any minor under 21 years of age; (ii) any member of the Lottery Control Board; (iii) any officer or other person employed by the Department of the Lottery or the Division of Internet Gaming; (iv) any spouse, child, brother, sister, or parent residing as a member of the same household in the principal place of abode of any persons identified in (ii) or (iii); and (iv) any individual whose name appears in the Division's responsible gaming database.

(j) The Division shall develop responsible gaming measures, including a statewide responsible gaming database identifying individuals who shall be prohibited from establishing an Internet gaming account or participating in Internet gaming. The Executive Director may place a person on the responsible gaming database if that person (i) has been convicted in any jurisdiction of a felony, any crime of moral turpitude, or a crime involving gaming; (ii) has violated this Act, the Illinois Horse Racing Act of 1975, the Riverboat Gambling Act, the Raffles Act, the Illinois Pull Tabs and Jar Games Act, the Bingo License and Tax Act, the Charitable Games Act, or the Video Gaming Act; (iii) has performed any act or had a notorious or unsavory reputation that would adversely affect public confidence and trust in gaming; or (iv) has his or her name on any valid and current exclusion list from another jurisdiction in the United States. By rule, the Division shall adopt procedures for the establishment and maintenance of the responsible gaming database. The Illinois Gaming Board, the Illinois Racing Board, and the Department of the Lottery shall, in a format specified by the Division, provide the Division with names of individuals to be included in the responsible gaming database. The Division may impose reasonable fees on persons authorized to access and use the responsible gaming database.

The Division's Internet gaming platform shall offer responsible gambling services and technical controls to players, including both temporary and permanent self-exclusion for all games offered; the ability for players to establish their own periodic deposit and wagering limits and maximum playing times; referrals to crisis counseling and referral services for individuals and families experiencing difficulty as a result of problem or compulsive gambling; and other services as the Division reasonably may determine are necessary or appropriate to reduce and prevent problem gambling. Any authorized participant who is allowed to participate in Internet gaming may voluntarily prohibit themselves from establishing an Internet gaming account. The Division shall incorporate the voluntary self-exclusion list for Internet gaming accounts into the responsible gaming database.

(k) There is created the Responsible Internet Gaming Advisory Board, consisting of the following members:

(1) the Superintendent of the Lottery, who shall be an ex officio member and shall serve as Chairperson;

(2) the Executive Director of the Division of Internet Gaming, who shall be an ex officio member;

(3) one representative from a national organization dedicated to the study and prevention of problem gambling, appointed by the Superintendent;

(4) one member who is an academic professional engaged in the study of problem gambling at a university or other institution of higher learning, appointed by the Superintendent;

(5) one member who has professional experience and expertise in the field of technical controls for responsible Internet gaming, appointed by the Superintendent; and

(6) one member who is an Illinois citizen and a member of the public, appointed by the Superintendent.

Each Advisory Board member shall serve for a term of 4 years and until his or her successor is appointed and qualified. However, in making initial appointments, 2 shall be appointed to serve for 2 years and 2 shall be appointed to serve for 4 years. Appointments to fill vacancies shall be made in the same manner as original appointments for the unexpired portion of the vacated term. Initial terms shall begin on the effective date of this amendatory Act of the 97th General Assembly. Each member of the Advisory Board shall be eligible for reappointment at the discretion of the Superintendent. A member of the Advisory Board may be removed from office for just cause. Advisory Board members shall receive no compensation, but shall be reimbursed for expenses incurred in connection with their duties as Advisory Board members.

Four members shall constitute a quorum. A majority vote of the Advisory Board is required for an Advisory Board decision. The Advisory Board shall meet no less often than once every 6 months and shall meet as often as the Chairperson deems necessary. Advisory Board members shall not be liable for any of their acts, omissions, decisions, or any other conduct in connection with their duties on the Advisory Board, except those involving willful, wanton, or intentional misconduct.

The Advisory Board shall make recommendations to the Executive Director regarding the development of rules and procedures to reduce and prevent problem or compulsive gambling and to ensure the conduct of safe, fair, and responsible Internet gaming. The Advisory Board may have such powers as may be granted by the Executive Director to carry out the provisions of this Section regarding responsible Internet gaming.

(l) The Division shall distribute all proceeds of Internet gaming in the following priority and manner:

(1) the payment of prizes and winnings;

(2) the payment of costs incurred in the operation and administration of the Division of Internet Gaming, including the payment of sums due to licensed Internet gaming affiliates; and

(3) on or before the last day of each fiscal year, any remaining proceeds, subject to payments under items (1) and (2), shall be deposited into the State Lottery Fund.

(m) There is created the Internet Gaming Advisory Committee as an advisory body within the Division of Internet Gaming. The Committee shall consist of the following members:

(1) the Superintendent of the Lottery, who shall be an ex officio member and shall serve as Chairman;

(2) the Executive Director of the Division of Internet Gaming, who shall serve ex officio;

(3) one member appointed by the Governor's Office;

(4) one member who represents owners licensees under the Riverboat Gambling Act, appointed by the Superintendent;

(5) one member who represents organization licensees under the Illinois Horse Racing Act of 1975, appointed by the Superintendent;

(6) one member who represents horsemen, appointed by the Superintendent; and

(7) one member who represents licensees under the Video Gaming Act, appointed by the Superintendent.

Each Committee member shall serve for a term of 4 years and until his or her successor is appointed and qualified. Appointments to fill vacancies shall be made in the same manner as original appointments for the unexpired portion of the vacated term. Initial terms shall begin upon the effective date of this amendatory Act of the 97th General Assembly. Each member of the Committee shall be eligible for reappointment at the discretion of the Superintendent or the Governor. The Committee shall meet as often as the Chairperson deems necessary. Members of the Committee shall serve without compensation, but shall be reimbursed, within the limits of funds available to the Division, for necessary expenses incurred in the performance of their duties.

The Committee shall conduct an ongoing study to determine (i) the impact of Internet gaming on licensees under the Illinois Horse Racing Act of 1975, the Riverboat Gambling Act, and the Video Gaming Act and (ii) the propriety and viability of alternative regulatory models or frameworks for Internet gaming to the extent consistent with the objectives set forth in subsection (a) of this Section. The Committee shall issue annual reports, which shall also include recommendations concerning prospective action on behalf of the General Assembly concerning Internet gaming. The Committee shall issue its first report no later than December 31, 2013.

Section 15. The Illinois Procurement Code is amended by changing Section 1-10 as follows:

(30 ILCS 500/1-10)

Sec. 1-10. Application.

(a) This Code applies only to procurements for which contractors were first solicited on or after July 1, 1998. This Code shall not be construed to affect or impair any contract, or any provision of a contract, entered into based on a solicitation prior to the implementation date of this Code as described in Article 99, including but not limited to any covenant entered into with respect to any revenue bonds or similar instruments. All procurements for which contracts are solicited between the effective date of Articles 50 and 99 and July 1, 1998 shall be substantially in accordance with this Code and its intent.

(b) This Code shall apply regardless of the source of the funds with which the contracts are paid, including federal assistance moneys. This Code shall not apply to:

(1) Contracts between the State and its political subdivisions or other governments, or between State governmental bodies except as specifically provided in this Code.

(2) Grants, except for the filing requirements of Section 20-80.

(3) Purchase of care.

(4) Hiring of an individual as employee and not as an independent contractor, whether pursuant to an employment code or policy or by contract directly with that individual.

(5) Collective bargaining contracts.

(6) Purchase of real estate, except that notice of this type of contract with a value of more than $25,000 must be published in the Procurement Bulletin within 7 days after the deed is recorded in the county of jurisdiction. The notice shall identify the real estate purchased, the names of all parties to the contract, the value of the contract, and the effective date of the contract.

(7) Contracts necessary to prepare for anticipated litigation, enforcement actions, or investigations, provided that the chief legal counsel to the Governor shall give his or her prior approval when the procuring agency is one subject to the jurisdiction of the Governor, and provided that the chief legal counsel of any other procuring entity subject to this Code shall give his or her prior approval when the procuring entity is not one subject to the jurisdiction of the Governor.

(8) Contracts for services to Northern Illinois University by a person, acting as an independent contractor, who is qualified by education, experience, and technical ability and is selected by negotiation for the purpose of providing non-credit educational service activities or products by means of specialized programs offered by the university.

(9) Procurement expenditures by the Illinois Conservation Foundation when only private funds are used.

(10) Procurement expenditures by the Illinois Health Information Exchange Authority involving private funds from the Health Information Exchange Fund. "Private funds" means gifts, donations, and private grants.

(11) Public-private agreements entered into according to the procurement requirements of Section 20 of the Public-Private Partnerships for Transportation Act and design-build agreements entered into according to the procurement requirements of Section 25 of the Public-Private Partnerships for Transportation Act.

(c) This Code does not apply to the electric power procurement process provided for under Section 1-75 of the Illinois Power Agency Act and Section 16-111.5 of the Public Utilities Act.

(d) Except for Section 20-160 and Article 50 of this Code, and as expressly required by Section 9.1 of the Illinois Lottery Law, the provisions of this Code do not apply to the procurement process provided for under Section 9.1 of the Illinois Lottery Law. In addition, except for Section 20-160 and Article 50 of this Code, the provisions of this Code also do not apply to contracts and subcontracts awarded pursuant to Section 7.18 of the Illinois Lottery Law.

(e) This Code does not apply to the process used by the Capital Development Board to retain a person or entity to assist the Capital Development Board with its duties related to the determination of costs of a clean coal SNG brownfield facility, as defined by Section 1-10 of the Illinois Power Agency Act, as required in subsection (h-3) of Section 9-220 of the Public Utilities Act, including calculating the range of capital costs, the range of operating and maintenance costs, or the sequestration costs or monitoring the construction of clean coal SNG brownfield facility for the full duration of construction.

(f) This Code does not apply to the process used by the Illinois Power Agency to retain a mediator to mediate sourcing agreement disputes between gas utilities and the clean coal SNG brownfield facility, as defined in Section 1-10 of the Illinois Power Agency Act, as required under subsection (h-1) of Section 9-220 of the Public Utilities Act.

(g) (e) This Code does not apply to the processes used by the Illinois Power Agency to retain a mediator to mediate contract disputes between gas utilities and the clean coal SNG facility and to retain an expert to assist in the review of contracts under subsection (h) of Section 9-220 of the Public Utilities Act. This Code does not apply to the process used by the Illinois Commerce Commission to retain an expert to assist in determining the actual incurred costs of the clean coal SNG facility and the reasonableness of those costs as required under subsection (h) of Section 9-220 of the Public Utilities Act.

(Source: P.A. 96-840, eff. 12-23-09; 96-1331, eff. 7-27-10; 97-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-502, eff. 8-23-11; revised 9-7-11.)

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