Full Text of SB3497 97th General Assembly
SB3497sam002 97TH GENERAL ASSEMBLY | Sen. Jeffrey M. Schoenberg Filed: 3/28/2012
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| 1 | | AMENDMENT TO SENATE BILL 3497
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3497, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 10. The Illinois Lottery Law is amended by | 6 | | changing Sections 7.12 and 7.15 and adding Section 14.4 as | 7 | | follows: | 8 | | (20 ILCS 1605/7.12) | 9 | | Sec. 7.12. Internet pilot program. | 10 | | (a) The General Assembly finds that: | 11 | | (1) the consumer market in Illinois has changed since | 12 | | the creation of the Illinois State Lottery in 1974; | 13 | | (2) the Internet has become an integral part of | 14 | | everyday life for a significant number of Illinois | 15 | | residents not only in regards to their professional life, | 16 | | but also in regards to personal business and communication; |
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| 1 | | and | 2 | | (3) the current practices of selling lottery tickets | 3 | | does not appeal to the new form of market participants who | 4 | | prefer to make purchases on the internet at their own | 5 | | convenience. | 6 | | It is the intent of the General Assembly to create an | 7 | | Internet pilot program for the sale of lottery tickets to | 8 | | capture this new form of market participant. | 9 | | (b) The Department shall create a pilot program that allows | 10 | | an individual 18 years of age or older to purchase lottery | 11 | | tickets or shares on the Internet without using a Lottery | 12 | | retailer with on-line status, as those terms are defined by | 13 | | rule. The Department shall restrict the sale of lottery tickets | 14 | | on the Internet to transactions initiated and received or | 15 | | otherwise made exclusively within the State of Illinois. The | 16 | | Department shall adopt rules , including emergency rules, | 17 | | necessary for the administration of this program. These rules | 18 | | shall include , among other things, requirements for marketing | 19 | | of the Lottery to infrequent players , as well as limitations on | 20 | | the purchases that may be made through any one individual's | 21 | | lottery account . The provisions of this Act and the rules | 22 | | adopted under this Act shall apply to the sale of lottery | 23 | | tickets or shares under this program. | 24 | | Before beginning the pilot program, the Department of the | 25 | | Lottery must submit a request to the United States Department | 26 | | of Justice for review of the State's plan to implement a pilot |
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| 1 | | program for the sale of lottery tickets on the Internet and its | 2 | | propriety under federal law. The Department shall implement the | 3 | | Internet pilot program only if the Department of Justice does | 4 | | not object to the implementation of the program within a | 5 | | reasonable period of time after its review. | 6 | | The Department is obligated to implement the pilot program | 7 | | set forth in this Section and Sections 7.15 and 7.16 only at | 8 | | such time, and to such extent, that the Department of Justice | 9 | | does not object to the implementation of the program within a | 10 | | reasonable period of time after its review. While the Illinois | 11 | | Lottery may only offer Lotto , and Mega Millions , and Powerball | 12 | | games through the pilot program, the Department shall request | 13 | | review from the federal Department of Justice for the Illinois | 14 | | Lottery to sell lottery tickets on the Internet on behalf of | 15 | | the State of Illinois that are not limited to just these games. | 16 | | The Department shall authorize the private manager to | 17 | | implement and administer the program pursuant to the management | 18 | | agreement entered into under Section 9.1 and in a manner | 19 | | consistent with the provisions of this Section. If a private | 20 | | manager has not been selected pursuant to Section 9.1 at the | 21 | | time the Department is obligated to implement the pilot | 22 | | program, then the Department shall not proceed with the pilot | 23 | | program until after the selection of the private manager, at | 24 | | which time the Department shall authorize the private manager | 25 | | to implement and administer the program pursuant to the | 26 | | management agreement entered into under Section 9.1 and in a |
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| 1 | | manner consistent with the provisions of this Section. | 2 | | The pilot program shall last for not less than 36 months, | 3 | | but not more than 48 months from the date of its initial | 4 | | operation. | 5 | | Nothing in this Section shall be construed as prohibiting | 6 | | the Department from implementing and operating a website portal | 7 | | whereby individuals who are 18 years of age or older with an | 8 | | Illinois mailing address may apply to purchase lottery tickets | 9 | | via subscription. Nothing in this Section shall also be | 10 | | construed as prohibiting the sale of Lotto, Mega Millions, and | 11 | | Powerball games by a lottery licensee pursuant to the | 12 | | Department's rules. | 13 | | (c) There is created the Internet Lottery Study Committee | 14 | | as an advisory body within the Department. The Department shall | 15 | | conduct a study to determine the impact of the Internet pilot | 16 | | program on lottery licensees. The Department shall also | 17 | | determine the feasibility of the sale of stored value cards by | 18 | | lottery licensees as a non-exclusive option for use by | 19 | | individuals 18 years of age or older who purchase tickets for | 20 | | authorized lottery games in the Internet pilot program. For the | 21 | | purposes of this study, it is anticipated that the stored value | 22 | | cards will have, but need not be limited to, the following | 23 | | characteristics: (1) the cards will be available only to | 24 | | individuals 18 years of age and older; (2) the cards will be | 25 | | rechargeable, closed-loop cards that can only be loaded with | 26 | | cash; (3) the cards will have unique identifying numbers to be |
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| 1 | | used for on-line play; (4) the cards will have on-line play | 2 | | subtracted from the card's value; (5) the cards may have | 3 | | on-line winnings added to them; (6) the cards will be used at | 4 | | Lottery retailers to cash out winnings of up to $600; and (7) | 5 | | the cards will meet all technological, programming, and | 6 | | security requirements mandated by the Department and the | 7 | | governing bodies of both Mega Millions and Powerball. | 8 | | To the fullest extent possible, but subject to available | 9 | | resources, the Department shall ensure that the study evaluates | 10 | | and analyzes at least the following issues: | 11 | | (1) economic benefits to the State from Internet | 12 | | Lottery sales from stored value cards and from resulting | 13 | | sales taxes; | 14 | | (2) economic benefits to local governments from sales | 15 | | taxes generated from Internet Lottery sales through stored | 16 | | value cards; | 17 | | (3) economic benefits to Lottery retailers from | 18 | | Internet Lottery sales and from ancillary retail product | 19 | | sales in connection with the same; | 20 | | (4) enhanced player age verification from face-to-face | 21 | | interaction; | 22 | | (5) enhanced control of gambling addiction from | 23 | | face-to-face interaction; | 24 | | (6) elimination of credit card overspending through | 25 | | the use of stored value cards and resulting reduced debt | 26 | | issues; |
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| 1 | | (7) the feasibility of the utilization of existing | 2 | | Lottery machines to dispense stored value cards; | 3 | | (8) the technological, programming, and security | 4 | | requirements to make stored value cards an appropriate | 5 | | sales alternative; and | 6 | | (9) the cost and project time estimates for | 7 | | implementation, including adaptation of existing Lottery | 8 | | machines, programming, and technology enhancements and | 9 | | impact to operations. | 10 | | The Study Committee shall consist of the Superintendent or | 11 | | his or her designee; the chief executive officer of the | 12 | | Lottery's private manager or his or her designee; a | 13 | | representative appointed by the Governor's Office; 2 | 14 | | representatives of the lottery licensee community appointed by | 15 | | the Superintendent; one representative of a statewide | 16 | | association representing food retailers appointed by the | 17 | | Superintendent; and one representative of a statewide | 18 | | association representing retail merchants appointed by the | 19 | | Superintendent. | 20 | | Members of the Study Committee shall be appointed within 30 | 21 | | days after the effective date of this amendatory Act of the | 22 | | 97th General Assembly. No later than 6 months after the | 23 | | effective date of this amendatory Act of the 97th General | 24 | | Assembly, the Department shall provide to the members of the | 25 | | Study Committee the proposed findings and recommendations of | 26 | | the study in order to solicit input from the Study Committee. |
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| 1 | | Within 30 calendar days thereafter, the Study Committee shall | 2 | | convene a meeting of the members to discuss the proposed | 3 | | findings and recommendations of the study. No later than 15 | 4 | | calendar days after meeting, the Study Committee shall submit | 5 | | to the Department any written changes, additions, or | 6 | | corrections the Study Committee wishes the Department to make | 7 | | to the study. The Department shall consider the propriety of | 8 | | and respond to each change, addition, or correction offered by | 9 | | the Study Committee in the study. The Department shall also set | 10 | | forth any such change, addition, or correction offered by | 11 | | members of the Study Committee and the Department's responses | 12 | | thereto in the appendix to the study. No later than 15 calendar | 13 | | days after receiving the changes, additions, or corrections | 14 | | offered by the Study Committee, the Department shall deliver | 15 | | copies of the final study and appendices, if any, to the | 16 | | Governor, President of the Senate, Minority Leader of the | 17 | | Senate, Speaker of the House of Representatives, Minority | 18 | | Leader of the House of Representatives, and each of the members | 19 | | of the Study Committee. | 20 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840, | 21 | | eff. 12-23-09; 97-464, eff. 10-15-11.) | 22 | | (20 ILCS 1605/7.15) | 23 | | Sec. 7.15. Verification for Internet program; security for | 24 | | Internet lottery accounts. The Department must establish a | 25 | | procedure to verify that an individual is 18 years of age or |
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| 1 | | older and that the sale of lottery tickets on the Internet is | 2 | | limited to transactions that are initiated and received or | 3 | | otherwise made exclusively within the State of Illinois, unless | 4 | | the federal Department of Justice indicates that it is legal | 5 | | for the transactions to originate in states other than | 6 | | Illinois. An individual must satisfy the verification | 7 | | procedure before he or she may establish one Internet lottery | 8 | | account and purchase lottery tickets or shares through the | 9 | | Internet pilot program. By rule, including by emergency rule, | 10 | | the Department shall establish funding procedures for Internet | 11 | | lottery accounts and shall provide a mechanism to prevent the | 12 | | unauthorized use of Internet lottery accounts. If any | 13 | | participant in the pilot program violates any provisions of | 14 | | this amendatory Act of the 96th General Assembly or rule | 15 | | established by the Department, the participant's winnings | 16 | | shall be forfeited. Such forfeited winnings shall be deposited | 17 | | in the Common School Fund. | 18 | | (Source: P.A. 96-34, eff. 7-13-09; 96-840, eff. 12-23-09.) | 19 | | (20 ILCS 1605/14.4 new) | 20 | | Sec. 14.4. Investigators. | 21 | | (a) The Department has the power to appoint investigators | 22 | | to conduct investigations, searches, seizures, arrests, and | 23 | | other duties required to enforce the provisions of this Act and | 24 | | prevent the perpetration of fraud upon the Department or the | 25 | | public. These investigators have and may exercise all the |
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| 1 | | powers of peace officers solely for the purpose of ensuring the | 2 | | integrity of the lottery games operated by the Department. | 3 | | (b) The Superintendent must authorize to each investigator | 4 | | employed under this
Section and
to any other employee of the | 5 | | Department exercising the powers of a peace
officer a
distinct | 6 | | badge that, on its face, (i) clearly states that the badge is
| 7 | | authorized
by the
Department and (ii)
contains a unique | 8 | | identifying number.
No other badge shall be authorized by
the | 9 | | Department.
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.".
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