Full Text of SB0513 99th General Assembly
SB0513ham002 99TH GENERAL ASSEMBLY | Rep. Sara Feigenholtz Filed: 5/24/2016
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| 1 | | AMENDMENT TO SENATE BILL 513
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 513, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Illinois Lottery Law is amended by changing | 6 | | Section 7.12 as follows: | 7 | | (20 ILCS 1605/7.12) | 8 | | Sec. 7.12. Internet pilot program. | 9 | | (a) The General Assembly finds that: | 10 | | (1) the consumer market in Illinois has changed since | 11 | | the creation of the Illinois State Lottery in 1974; | 12 | | (2) the Internet has become an integral part of | 13 | | everyday life for a significant number of Illinois | 14 | | residents not only in regards to their professional life, | 15 | | but also in regards to personal business and communication; | 16 | | and |
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| 1 | | (3) the current practices of selling lottery tickets | 2 | | does not appeal to the new form of market participants who | 3 | | prefer to make purchases on the Internet at their own | 4 | | convenience. | 5 | | It is the intent of the General Assembly to create an | 6 | | Internet pilot program for the sale of lottery tickets to | 7 | | capture this new form of market participant. | 8 | | (b) The Department shall create a pilot program that allows | 9 | | an individual 18 years of age or older to purchase lottery | 10 | | tickets or shares on the Internet without using a Lottery | 11 | | retailer with on-line status, as those terms are defined by | 12 | | rule. The Department shall restrict the sale of lottery tickets | 13 | | on the Internet to transactions initiated and received or | 14 | | otherwise made exclusively within the State of Illinois. The | 15 | | Department shall adopt rules necessary for the administration | 16 | | of this program. These rules shall include, among other things, | 17 | | requirements for marketing of the Lottery to infrequent | 18 | | players, as well as limitations on the purchases that may be | 19 | | made through any one individual's lottery account. The | 20 | | provisions of this Act and the rules adopted under this Act | 21 | | shall apply to the sale of lottery tickets or shares under this | 22 | | program. | 23 | | The Department may offer Lotto, Lucky Day Lotto, Mega | 24 | | Millions, Powerball, Pick 3, Pick 4, and other draw games that | 25 | | are offered at retail locations, as well as interactive instant | 26 | | win games, through the Internet program. The private manager |
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| 1 | | shall obtain the Director's approval before providing any draw | 2 | | games or interactive instant win games and must submit the | 3 | | following information with the Director: the rationale for | 4 | | introducing the draw games or interactive instant win games, | 5 | | the consumer research on the target market, and the amount of | 6 | | net profit that is expected. Any games that are approved for | 7 | | sale by Lottery retail licensees are automatically approved for | 8 | | sale on the Internet. | 9 | | Before beginning the pilot program, the Department of the | 10 | | Lottery must submit a request to the United States Department | 11 | | of Justice for review of the State's plan to implement a pilot | 12 | | program for the sale of lottery tickets on the Internet and its | 13 | | propriety under federal law. The Department shall implement the | 14 | | Internet pilot program only if the Department of Justice does | 15 | | not object to the implementation of the program within a | 16 | | reasonable period of time after its review. | 17 | | The Department is obligated to implement the pilot program | 18 | | set forth in this Section and Sections 7.15 and 7.16 only at | 19 | | such time, and to such extent, that the Department of Justice | 20 | | does not object to the implementation of the program within a | 21 | | reasonable period of time after its review. While the Illinois | 22 | | Lottery may only offer Lotto, Mega Millions, and Powerball | 23 | | games through the pilot program, the Department shall request | 24 | | review from the federal Department of Justice for the Illinois | 25 | | Lottery to sell lottery tickets on the Internet on behalf of | 26 | | the State of Illinois that are not limited to just these games. |
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| 1 | | The Department shall authorize the private manager to | 2 | | implement and administer the program pursuant to the management | 3 | | agreement entered into under Section 9.1 and in a manner | 4 | | consistent with the provisions of this Section. If a private | 5 | | manager has not been selected pursuant to Section 9.1 at the | 6 | | time the Department is obligated to implement the pilot program | 7 | | or has been terminated pursuant to Section 9.1 , then the | 8 | | Department shall not proceed with offering Lucky Day Lotto, | 9 | | Pick 3, Pick 4, other draw games, or interactive instant win | 10 | | games under the pilot program until after the selection of a | 11 | | the private manager, at which time the Department shall | 12 | | authorize the private manager to implement and administer the | 13 | | program pursuant to the management agreement entered into under | 14 | | Section 9.1 and in a manner consistent with the provisions of | 15 | | this Section. The Department may continue offering Lotto, Mega | 16 | | Millions, and Powerball prior to the selection of a private | 17 | | manager. | 18 | | The pilot program shall last for not less than 36 months, | 19 | | but not more than 48 months from the date of its initial | 20 | | operation. | 21 | | Nothing in this Section shall be construed as prohibiting | 22 | | the Department from implementing and operating a website portal | 23 | | whereby individuals who are 18 years of age or older with an | 24 | | Illinois mailing address may apply to purchase lottery tickets | 25 | | via subscription. Nothing in this Section shall also be | 26 | | construed as prohibiting the sale of Lotto, Mega Millions, and |
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| 1 | | Powerball , Lucky Day Lotto, Pick 3, or Pick 4 games by a | 2 | | lottery licensee pursuant to the Department's rules. | 3 | | (c) (Blank). There is created the Internet Lottery Study | 4 | | Committee as an advisory body within the Department. The | 5 | | Department shall conduct a study to determine the impact of the | 6 | | Internet pilot program on lottery licensees. The Department | 7 | | shall also determine the feasibility of the sale of stored | 8 | | value cards by lottery licensees as a non-exclusive option for | 9 | | use by individuals 18 years of age or older who purchase | 10 | | tickets for authorized lottery games in the Internet pilot | 11 | | program. For the purposes of this study, it is anticipated that | 12 | | the stored value cards will have, but need not be limited to, | 13 | | the following characteristics: (1) the cards will be available | 14 | | only to individuals 18 years of age and older; (2) the cards | 15 | | will be rechargeable, closed-loop cards that can only be loaded | 16 | | with cash; (3) the cards will have unique identifying numbers | 17 | | to be used for on-line play; (4) the cards will have on-line | 18 | | play subtracted from the card's value; (5) the cards may have | 19 | | on-line winnings added to them; (6) the cards will be used at | 20 | | Lottery retailers to cash out winnings of up to $600; and (7) | 21 | | the cards will meet all technological, programming, and | 22 | | security requirements mandated by the Department and the | 23 | | governing bodies of both Mega Millions and Powerball. | 24 | | To the fullest extent possible, but subject to available | 25 | | resources, the Department shall ensure that the study evaluates | 26 | | and analyzes at least the following issues: |
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| 1 | | (1) economic benefits to the State from Internet | 2 | | Lottery sales from stored value cards and from resulting | 3 | | sales taxes; | 4 | | (2) economic benefits to local governments from sales | 5 | | taxes generated from Internet Lottery sales through stored | 6 | | value cards; | 7 | | (3) economic benefits to Lottery retailers from | 8 | | Internet Lottery sales and from ancillary retail product | 9 | | sales in connection with the same; | 10 | | (4) enhanced player age verification from face-to-face | 11 | | interaction; | 12 | | (5) enhanced control of gambling addiction from | 13 | | face-to-face interaction; | 14 | | (6) elimination of credit card overspending through | 15 | | the use of stored value cards and resulting reduced debt | 16 | | issues; | 17 | | (7) the feasibility of the utilization of existing | 18 | | Lottery machines to dispense stored value cards; | 19 | | (8) the technological, programming, and security | 20 | | requirements to make stored value cards an appropriate | 21 | | sales alternative; and | 22 | | (9) the cost and project time estimates for | 23 | | implementation, including adaptation of existing Lottery | 24 | | machines, programming, and technology enhancements and | 25 | | impact to operations. | 26 | | The Study Committee shall consist of the Director or his or |
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| 1 | | her designee; the chief executive officer of the Lottery's | 2 | | private manager or his or her designee; a representative | 3 | | appointed by the Governor's Office; 2 representatives of the | 4 | | lottery licensee community appointed by the Director; one | 5 | | representative of a statewide association representing food | 6 | | retailers appointed by the Director; and one representative of | 7 | | a statewide association representing retail merchants | 8 | | appointed by the Director. | 9 | | Members of the Study Committee shall be appointed within 30 | 10 | | days after the effective date of this amendatory Act of the | 11 | | 97th General Assembly. No later than 6 months after the | 12 | | effective date of this amendatory Act of the 97th General | 13 | | Assembly, the Department shall provide to the members of the | 14 | | Study Committee the proposed findings and recommendations of | 15 | | the study in order to solicit input from the Study Committee. | 16 | | Within 30 calendar days thereafter, the Study Committee shall | 17 | | convene a meeting of the members to discuss the proposed | 18 | | findings and recommendations of the study. No later than 15 | 19 | | calendar days after meeting, the Study Committee shall submit | 20 | | to the Department any written changes, additions, or | 21 | | corrections the Study Committee wishes the Department to make | 22 | | to the study. The Department shall consider the propriety of | 23 | | and respond to each change, addition, or correction offered by | 24 | | the Study Committee in the study. The Department shall also set | 25 | | forth any such change, addition, or correction offered by | 26 | | members of the Study Committee and the Department's responses |
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| 1 | | thereto in the appendix to the study. No later than 15 calendar | 2 | | days after receiving the changes, additions, or corrections | 3 | | offered by the Study Committee, the Department shall deliver | 4 | | copies of the final study and appendices, if any, to the | 5 | | Governor, President of the Senate, Minority Leader of the | 6 | | Senate, Speaker of the House of Representatives, Minority | 7 | | Leader of the House of Representatives, and each of the members | 8 | | of the Study Committee. | 9 | | (d) The private manager or an entity affiliated with the | 10 | | private manager may directly provide either, but not both, of | 11 | | the following: (i) lottery retailer terminals and services or | 12 | | (ii) internet lottery games, including related system | 13 | | infrastructure and management services. The private manager is | 14 | | authorized to enter into agreements with any person or entity | 15 | | to provide either of these functions, subject to the approval | 16 | | of the Department. The Department and the private manager shall | 17 | | provide the necessary interface access to any person or entity | 18 | | that is selected to offer for purchase lottery tickets or | 19 | | shares on the Internet. | 20 | | (e) Notwithstanding any provision of law to the contrary, | 21 | | this amendatory Act of the 99th General Assembly does not | 22 | | authorize the Department to offer a draw game or interactive | 23 | | instant win game that is substantially similar to any game that | 24 | | is contained in the Illinois Gaming Board Administrator's list | 25 | | of approved games pursuant to 86 Ill. Adm. Code 3000.605 on the | 26 | | effective date of this amendatory Act of the 99th General |
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| 1 | | Assembly. | 2 | | (f) No later than December 31 of each year, the private | 3 | | manager shall prepare and submit an annual report, covering the | 4 | | previous fiscal year, to the General Assembly regarding the | 5 | | performance of the Internet program and the Department. This | 6 | | report shall include, but is not limited to, the following: | 7 | | (1) the total number of Internet sales and profits; | 8 | | (2) the total number of subscribers, along with | 9 | | information concerning the age, gender, and ethnicity of | 10 | | subscribers; | 11 | | (3) the average spend per Internet session; | 12 | | (4) the effectiveness of age and geographic controls; | 13 | | (5) the impact of the Internet program on illegal | 14 | | gambling and an evaluation of Internet sales on problem | 15 | | gambling; | 16 | | (6) the total number of transfers in and out of State | 17 | | funds; and | 18 | | (7) the total number of vendors, employees, and other | 19 | | personnel utilized by the Department and private manager. | 20 | | (Source: P.A. 97-464, eff. 10-15-11; 97-1121, eff. 8-27-12; | 21 | | 98-499, eff. 8-16-13.)
| 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law.".
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