Full Text of SB0211 100th General Assembly
SB0211enr 100TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning gaming.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. This Act may be referred to as the Illinois | 5 | | Homeless Veterans and Working Families Lottery Law. | 6 | | Section 5. The Illinois Lottery Law is amended by changing | 7 | | Sections 2, 9, 9.1, and 20 and by adding Section 21.10 as | 8 | | follows:
| 9 | | (20 ILCS 1605/2) (from Ch. 120, par. 1152)
| 10 | | (Text of Section before amendment by P.A. 100-466 )
| 11 | | Sec. 2. This Act is enacted to implement and establish | 12 | | within the State
a lottery to be conducted by the State through | 13 | | the Department. The entire net proceeds of the Lottery
are to | 14 | | be used for the support of the State's Common School Fund,
| 15 | | except as provided in subsection (o) of Section 9.1 and | 16 | | Sections 21.5, 21.6, 21.7, 21.8, and 21.9 , and 21.10 . The | 17 | | General Assembly finds that it is in the public interest for | 18 | | the Department to conduct the functions of the Lottery with the | 19 | | assistance of a private manager under a management agreement | 20 | | overseen by the Department. The Department shall be accountable | 21 | | to the General Assembly and the people of the State through a | 22 | | comprehensive system of regulation, audits, reports, and |
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| 1 | | enduring operational oversight. The Department's ongoing | 2 | | conduct of the Lottery through a management agreement with a | 3 | | private manager shall act to promote and ensure the integrity, | 4 | | security, honesty, and fairness of the Lottery's operation and | 5 | | administration. It is the intent of the General Assembly that | 6 | | the Department shall conduct the Lottery with the assistance of | 7 | | a private manager under a management agreement at all times in | 8 | | a manner consistent with 18 U.S.C. 1307(a)(1), 1307(b)(1), | 9 | | 1953(b)(4).
| 10 | | (Source: P.A. 98-649, eff. 6-16-14; 99-933, eff. 1-27-17.)
| 11 | | (Text of Section after amendment by P.A. 100-466 ) | 12 | | Sec. 2. This Act is enacted to implement and establish | 13 | | within the State
a lottery to be conducted by the State through | 14 | | the Department. The entire net proceeds of the Lottery
are to | 15 | | be used for the support of the State's Common School Fund,
| 16 | | except as provided in subsection (o) of Section 9.1 and | 17 | | Sections 21.5, 21.6, 21.7, 21.8, and 21.9 , and 21.10 . The | 18 | | General Assembly finds that it is in the public interest for | 19 | | the Department to conduct the functions of the Lottery with the | 20 | | assistance of a private manager under a management agreement | 21 | | overseen by the Department. The Department shall be accountable | 22 | | to the General Assembly and the people of the State through a | 23 | | comprehensive system of regulation, audits, reports, and | 24 | | enduring operational oversight. The Department's ongoing | 25 | | conduct of the Lottery through a management agreement with a |
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| 1 | | private manager shall act to promote and ensure the integrity, | 2 | | security, honesty, and fairness of the Lottery's operation and | 3 | | administration. It is the intent of the General Assembly that | 4 | | the Department shall conduct the Lottery with the assistance of | 5 | | a private manager under a management agreement at all times in | 6 | | a manner consistent with 18 U.S.C. 1307(a)(1), 1307(b)(1), | 7 | | 1953(b)(4).
| 8 | | Beginning with Fiscal Year 2018 and every year thereafter, | 9 | | any moneys transferred from the State Lottery Fund to the | 10 | | Common School Fund shall be supplemental to, and not in lieu | 11 | | of, any other money due to be transferred to the Common School | 12 | | Fund by law or appropriation. | 13 | | (Source: P.A. 99-933, eff. 1-27-17; 100-466, eff. 6-1-18.)
| 14 | | (20 ILCS 1605/9) (from Ch. 120, par. 1159)
| 15 | | Sec. 9. The Director, as administrative head of
the | 16 | | Department, shall direct and supervise all its administrative | 17 | | and
technical activities. In addition to the duties imposed | 18 | | upon him
elsewhere in this Act, it
shall be the Director's | 19 | | duty:
| 20 | | a. To supervise and administer the operation of the | 21 | | lottery in
accordance with the provisions of this Act or | 22 | | such
rules and regulations of the Department
adopted | 23 | | thereunder.
| 24 | | b. To attend meetings of the Board or to appoint a | 25 | | designee to
attend in his stead.
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| 1 | | c. To employ and direct such personnel in accord with | 2 | | the Personnel Code,
as may be necessary to carry out the | 3 | | purposes of this Act.
In addition, the Director
may by | 4 | | agreement secure such services as he or she may deem | 5 | | necessary
from any other department, agency, or unit of the | 6 | | State government, and
may employ and compensate such | 7 | | consultants and technical assistants as may
be required and | 8 | | is otherwise permitted by law.
| 9 | | d. To license, in accordance with the provisions of | 10 | | Sections 10 and 10.1
of this Act and the rules and | 11 | | regulations of the Department
adopted thereunder,
as | 12 | | agents to sell lottery tickets such persons as in his | 13 | | opinion will best
serve the public convenience and promote | 14 | | the sale of tickets or shares.
The Director may require a | 15 | | bond from every licensed agent, in such
amount as provided | 16 | | in the rules and regulations of the Department. Every | 17 | | licensed
agent shall prominently display his license, or a | 18 | | copy thereof, as provided
in the rules and regulations of | 19 | | the Department.
| 20 | | e. To suspend or revoke any license issued pursuant to | 21 | | this Act or the
rules and regulations promulgated by the | 22 | | Department thereunder.
| 23 | | f. To confer regularly as necessary or desirable and | 24 | | not
less than once
every month with the Lottery Control | 25 | | Board on the operation and administration
of the Lottery; | 26 | | to make available for inspection by the Board or any member
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| 1 | | of the Board, upon request, all books, records, files, and | 2 | | other information
and documents of his office; to advise | 3 | | the Board and recommend such rules
and regulations and such | 4 | | other matters as he deems necessary and advisable
to | 5 | | improve the operation and administration of the lottery.
| 6 | | g. To enter into contracts for the operation of the | 7 | | lottery, or any part
thereof, and into contracts for the | 8 | | promotion of the lottery on behalf of
the Department with | 9 | | any person, firm or corporation, to perform any of the
| 10 | | functions provided for in this Act or the rules and | 11 | | regulations promulgated
thereunder. The Department shall | 12 | | not expend State funds on a contractual
basis for such | 13 | | functions unless those functions and expenditures are | 14 | | expressly
authorized by the General Assembly.
| 15 | | h. To enter into an agreement or agreements with the | 16 | | management of state
lotteries operated pursuant to the laws | 17 | | of other states for the purpose of
creating and operating a | 18 | | multi-state lottery game wherein a separate and
distinct | 19 | | prize pool would be combined to award larger prizes to the | 20 | | public
than could be offered by the several state | 21 | | lotteries, individually. No
tickets or shares offered in | 22 | | connection with a multi-state lottery game
shall be sold | 23 | | within the State of Illinois, except those offered by and
| 24 | | through the Department. No such agreement shall purport to | 25 | | pledge the full
faith and credit of the State of Illinois, | 26 | | nor shall the Department expend
State funds on a |
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| 1 | | contractual basis in connection with any such game unless
| 2 | | such expenditures are expressly authorized by the General | 3 | | Assembly,
provided, however, that in the event of error or | 4 | | omission by the Illinois
State Lottery in the conduct of | 5 | | the game, as determined by the multi-state
game directors, | 6 | | the Department shall be authorized to pay a prize winner or
| 7 | | winners the lesser of a disputed prize or $1,000,000, any | 8 | | such payment to
be made solely from funds appropriated for | 9 | | game prize purposes. The
Department shall be authorized to | 10 | | share in the ordinary operating expenses
of any such | 11 | | multi-state lottery game, from funds appropriated by the | 12 | | General Assembly,
and in the event the multi-state game | 13 | | control offices are physically
located within the State of | 14 | | Illinois, the Department is authorized to
advance start-up | 15 | | operating costs not to exceed $150,000, subject to
| 16 | | proportionate reimbursement of such costs by the other | 17 | | participating state
lotteries. The Department shall be | 18 | | authorized to share proportionately in
the costs of | 19 | | establishing a liability reserve fund from funds | 20 | | appropriated
by the General Assembly. The Department is | 21 | | authorized to transfer prize
award funds attributable to | 22 | | Illinois sales of multi-state lottery game tickets to
the | 23 | | multi-state control office, or its designated depository, | 24 | | for deposit
to such game pool account or accounts as may be | 25 | | established by the
multi-state game directors, the records | 26 | | of which account or accounts shall
be available at all |
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| 1 | | times for inspection in an audit by the Auditor General
of | 2 | | Illinois and any other auditors pursuant to the laws of the | 3 | | State of
Illinois.
No multi-state game prize awarded to a | 4 | | nonresident of Illinois, with
respect to a ticket or share | 5 | | purchased in a state other than the State of
Illinois, | 6 | | shall be deemed to be a prize awarded under this Act for | 7 | | the
purpose of taxation under the Illinois Income Tax Act.
| 8 | | The Department shall promulgate such rules as may be | 9 | | appropriate to
implement the provisions of this Section.
| 10 | | i. To make a continuous study and investigation of (1) | 11 | | the operation and
the administration of similar laws which | 12 | | may be in effect in other states
or countries, (2) any | 13 | | literature on the subject which from time to time
may be | 14 | | published or available, (3) any Federal laws which may | 15 | | affect the
operation of the
lottery, and (4) the reaction | 16 | | of Illinois citizens to existing and potential
features of | 17 | | the lottery with a view to recommending or effecting | 18 | | changes
that will tend to serve the purposes of this Act.
| 19 | | j. To report monthly to the State Treasurer and the | 20 | | Lottery Control Board
a full and complete statement of | 21 | | lottery revenues, prize disbursements and
other expenses | 22 | | for each month and the amounts to be transferred to the | 23 | | Common
School Fund pursuant to Section 7.2, and to
make an | 24 | | annual report, which shall include a full and complete | 25 | | statement
of lottery revenues, prize disbursements and | 26 | | other expenses, to the Governor
and the Board. All reports |
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| 1 | | required by this subsection shall be public
and copies of | 2 | | all
such reports shall be sent to the Speaker of the House, | 3 | | the President of
the Senate, and the minority leaders of | 4 | | both houses. | 5 | | k. To keep the name and municipality of residence of | 6 | | the prize winner of a prize of $250,000 or greater | 7 | | confidential upon the prize winner making a written request | 8 | | that his or her name and municipality of residence be kept | 9 | | confidential. The prize winner must submit his or her | 10 | | written request at the time of claiming the prize. The | 11 | | written request shall be in the form established by the | 12 | | Department. Nothing in this paragraph k supersedes the | 13 | | Department's duty to disclose the name and municipality of | 14 | | residence of a prize winner of a prize of $250,000 or | 15 | | greater pursuant to the Freedom of Information Act.
| 16 | | (Source: P.A. 98-499, eff. 8-16-13; 99-933, eff. 1-27-17.)
| 17 | | (20 ILCS 1605/9.1) | 18 | | Sec. 9.1. Private manager and management agreement. | 19 | | (a) As used in this Section: | 20 | | "Offeror" means a person or group of persons that responds | 21 | | to a request for qualifications under this Section. | 22 | | "Request for qualifications" means all materials and | 23 | | documents prepared by the Department to solicit the following | 24 | | from offerors: | 25 | | (1) Statements of qualifications. |
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| 1 | | (2) Proposals to enter into a management agreement, | 2 | | including the identity of any prospective vendor or vendors | 3 | | that the offeror intends to initially engage to assist the | 4 | | offeror in performing its obligations under the management | 5 | | agreement. | 6 | | "Final offer" means the last proposal submitted by an | 7 | | offeror in response to the request for qualifications, | 8 | | including the identity of any prospective vendor or vendors | 9 | | that the offeror intends to initially engage to assist the | 10 | | offeror in performing its obligations under the management | 11 | | agreement. | 12 | | "Final offeror" means the offeror ultimately selected by | 13 | | the Governor to be the private manager for the Lottery under | 14 | | subsection (h) of this Section. | 15 | | (b) By September 15, 2010, the Governor shall select a | 16 | | private manager for the total management of the Lottery with | 17 | | integrated functions, such as lottery game design, supply of | 18 | | goods and services, and advertising and as specified in this | 19 | | Section. | 20 | | (c) Pursuant to the terms of this subsection, the | 21 | | Department shall endeavor to expeditiously terminate the | 22 | | existing contracts in support of the Lottery in effect on the | 23 | | effective date of this amendatory Act of the 96th General | 24 | | Assembly in connection with the selection of the private | 25 | | manager. As part of its obligation to terminate these contracts | 26 | | and select the private manager, the Department shall establish |
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| 1 | | a mutually agreeable timetable to transfer the functions of | 2 | | existing contractors to the private manager so that existing | 3 | | Lottery operations are not materially diminished or impaired | 4 | | during the transition. To that end, the Department shall do the | 5 | | following: | 6 | | (1) where such contracts contain a provision | 7 | | authorizing termination upon notice, the Department shall | 8 | | provide notice of termination to occur upon the mutually | 9 | | agreed timetable for transfer of functions; | 10 | | (2) upon the expiration of any initial term or renewal | 11 | | term of the current Lottery contracts, the Department shall | 12 | | not renew such contract for a term extending beyond the | 13 | | mutually agreed timetable for transfer of functions; or | 14 | | (3) in the event any current contract provides for | 15 | | termination of that contract upon the implementation of a | 16 | | contract with the private manager, the Department shall | 17 | | perform all necessary actions to terminate the contract on | 18 | | the date that coincides with the mutually agreed timetable | 19 | | for transfer of functions. | 20 | | If the contracts to support the current operation of the | 21 | | Lottery in effect on the effective date of this amendatory Act | 22 | | of the 96th General Assembly are not subject to termination as | 23 | | provided for in this subsection (c), then the Department may | 24 | | include a provision in the contract with the private manager | 25 | | specifying a mutually agreeable methodology for incorporation. | 26 | | (c-5) The Department shall include provisions in the |
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| 1 | | management agreement whereby the private manager shall, for a | 2 | | fee, and pursuant to a contract negotiated with the Department | 3 | | (the "Employee Use Contract"), utilize the services of current | 4 | | Department employees to assist in the administration and | 5 | | operation of the Lottery. The Department shall be the employer | 6 | | of all such bargaining unit employees assigned to perform such | 7 | | work for the private manager, and such employees shall be State | 8 | | employees, as defined by the Personnel Code. Department | 9 | | employees shall operate under the same employment policies, | 10 | | rules, regulations, and procedures, as other employees of the | 11 | | Department. In addition, neither historical representation | 12 | | rights under the Illinois Public Labor Relations Act, nor | 13 | | existing collective bargaining agreements, shall be disturbed | 14 | | by the management agreement with the private manager for the | 15 | | management of the Lottery. | 16 | | (d) The management agreement with the private manager shall | 17 | | include all of the following: | 18 | | (1) A term not to exceed 10 years, including any | 19 | | renewals. | 20 | | (2) A provision specifying that the Department: | 21 | | (A) shall exercise actual control over all | 22 | | significant business decisions; | 23 | | (A-5) has the authority to direct or countermand | 24 | | operating decisions by the private manager at any time; | 25 | | (B) has ready access at any time to information | 26 | | regarding Lottery operations; |
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| 1 | | (C) has the right to demand and receive information | 2 | | from the private manager concerning any aspect of the | 3 | | Lottery operations at any time; and | 4 | | (D) retains ownership of all trade names, | 5 | | trademarks, and intellectual property associated with | 6 | | the Lottery. | 7 | | (3) A provision imposing an affirmative duty on the | 8 | | private manager to provide the Department with material | 9 | | information and with any information the private manager | 10 | | reasonably believes the Department would want to know to | 11 | | enable the Department to conduct the Lottery. | 12 | | (4) A provision requiring the private manager to | 13 | | provide the Department with advance notice of any operating | 14 | | decision that bears significantly on the public interest, | 15 | | including, but not limited to, decisions on the kinds of | 16 | | games to be offered to the public and decisions affecting | 17 | | the relative risk and reward of the games being offered, so | 18 | | the Department has a reasonable opportunity to evaluate and | 19 | | countermand that decision. | 20 | | (5) A provision providing for compensation of the | 21 | | private manager that may consist of, among other things, a | 22 | | fee for services and a performance based bonus as | 23 | | consideration for managing the Lottery, including terms | 24 | | that may provide the private manager with an increase in | 25 | | compensation if Lottery revenues grow by a specified | 26 | | percentage in a given year. |
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| 1 | | (6) (Blank). | 2 | | (7) A provision requiring the deposit of all Lottery | 3 | | proceeds to be deposited into the State Lottery Fund except | 4 | | as otherwise provided in Section 20 of this Act. | 5 | | (8) A provision requiring the private manager to locate | 6 | | its principal office within the State. | 7 | | (8-5) A provision encouraging that at least 20% of the | 8 | | cost of contracts entered into for goods and services by | 9 | | the private manager in connection with its management of | 10 | | the Lottery, other than contracts with sales agents or | 11 | | technical advisors, be awarded to businesses that are a | 12 | | minority-owned business, a women-owned business, or a | 13 | | business owned by a person with disability, as those terms | 14 | | are defined in the Business Enterprise for Minorities, | 15 | | Women, and Persons with Disabilities Act. | 16 | | (9) A requirement that so long as the private manager | 17 | | complies with all the conditions of the agreement under the | 18 | | oversight of the Department, the private manager shall have | 19 | | the following duties and obligations with respect to the | 20 | | management of the Lottery: | 21 | | (A) The right to use equipment and other assets | 22 | | used in the operation of the Lottery. | 23 | | (B) The rights and obligations under contracts | 24 | | with retailers and vendors. | 25 | | (C) The implementation of a comprehensive security | 26 | | program by the private manager. |
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| 1 | | (D) The implementation of a comprehensive system | 2 | | of internal audits. | 3 | | (E) The implementation of a program by the private | 4 | | manager to curb compulsive gambling by persons playing | 5 | | the Lottery. | 6 | | (F) A system for determining (i) the type of | 7 | | Lottery games, (ii) the method of selecting winning | 8 | | tickets, (iii) the manner of payment of prizes to | 9 | | holders of winning tickets, (iv) the frequency of | 10 | | drawings of winning tickets, (v) the method to be used | 11 | | in selling tickets, (vi) a system for verifying the | 12 | | validity of tickets claimed to be winning tickets, | 13 | | (vii) the basis upon which retailer commissions are | 14 | | established by the manager, and (viii) minimum | 15 | | payouts. | 16 | | (10) A requirement that advertising and promotion must | 17 | | be consistent with Section 7.8a of this Act. | 18 | | (11) A requirement that the private manager market the | 19 | | Lottery to those residents who are new, infrequent, or | 20 | | lapsed players of the Lottery, especially those who are | 21 | | most likely to make regular purchases on the Internet as | 22 | | permitted by law. | 23 | | (12) A code of ethics for the private manager's | 24 | | officers and employees. | 25 | | (13) A requirement that the Department monitor and | 26 | | oversee the private manager's practices and take action |
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| 1 | | that the Department considers appropriate to ensure that | 2 | | the private manager is in compliance with the terms of the | 3 | | management agreement, while allowing the manager, unless | 4 | | specifically prohibited by law or the management | 5 | | agreement, to negotiate and sign its own contracts with | 6 | | vendors. | 7 | | (14) A provision requiring the private manager to | 8 | | periodically file, at least on an annual basis, appropriate | 9 | | financial statements in a form and manner acceptable to the | 10 | | Department. | 11 | | (15) Cash reserves requirements. | 12 | | (16) Procedural requirements for obtaining the prior | 13 | | approval of the Department when a management agreement or | 14 | | an interest in a management agreement is sold, assigned, | 15 | | transferred, or pledged as collateral to secure financing. | 16 | | (17) Grounds for the termination of the management | 17 | | agreement by the Department or the private manager. | 18 | | (18) Procedures for amendment of the agreement. | 19 | | (19) A provision requiring the private manager to | 20 | | engage in an open and competitive bidding process for any | 21 | | procurement having a cost in excess of $50,000 that is not | 22 | | a part of the private manager's final offer. The process | 23 | | shall favor the selection of a vendor deemed to have | 24 | | submitted a proposal that provides the Lottery with the | 25 | | best overall value. The process shall not be subject to the | 26 | | provisions of the Illinois Procurement Code, unless |
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| 1 | | specifically required by the management agreement. | 2 | | (20) The transition of rights and obligations, | 3 | | including any associated equipment or other assets used in | 4 | | the operation of the Lottery, from the manager to any | 5 | | successor manager of the lottery, including the | 6 | | Department, following the termination of or foreclosure | 7 | | upon the management agreement. | 8 | | (21) Right of use of copyrights, trademarks, and | 9 | | service marks held by the Department in the name of the | 10 | | State. The agreement must provide that any use of them by | 11 | | the manager shall only be for the purpose of fulfilling its | 12 | | obligations under the management agreement during the term | 13 | | of the agreement. | 14 | | (22) The disclosure of any information requested by the | 15 | | Department to enable it to comply with the reporting | 16 | | requirements and information requests provided for under | 17 | | subsection (p) of this Section. | 18 | | (e) Notwithstanding any other law to the contrary, the | 19 | | Department shall select a private manager through a competitive | 20 | | request for qualifications process consistent with Section | 21 | | 20-35 of the Illinois Procurement Code, which shall take into | 22 | | account: | 23 | | (1) the offeror's ability to market the Lottery to | 24 | | those residents who are new, infrequent, or lapsed players | 25 | | of the Lottery, especially those who are most likely to | 26 | | make regular purchases on the Internet; |
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| 1 | | (2) the offeror's ability to address the State's | 2 | | concern with the social effects of gambling on those who | 3 | | can least afford to do so; | 4 | | (3) the offeror's ability to provide the most | 5 | | successful management of the Lottery for the benefit of the | 6 | | people of the State based on current and past business | 7 | | practices or plans of the offeror; and | 8 | | (4) the offeror's poor or inadequate past performance | 9 | | in servicing, equipping, operating or managing a lottery on | 10 | | behalf of Illinois, another State or foreign government and | 11 | | attracting persons who are not currently regular players of | 12 | | a lottery. | 13 | | (f) The Department may retain the services of an advisor or | 14 | | advisors with significant experience in financial services or | 15 | | the management, operation, and procurement of goods, services, | 16 | | and equipment for a government-run lottery to assist in the | 17 | | preparation of the terms of the request for qualifications and | 18 | | selection of the private manager. Any prospective advisor | 19 | | seeking to provide services under this subsection (f) shall | 20 | | disclose any material business or financial relationship | 21 | | during the past 3 years with any potential offeror, or with a | 22 | | contractor or subcontractor presently providing goods, | 23 | | services, or equipment to the Department to support the | 24 | | Lottery. The Department shall evaluate the material business or | 25 | | financial relationship of each prospective advisor. The | 26 | | Department shall not select any prospective advisor with a |
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| 1 | | substantial business or financial relationship that the | 2 | | Department deems to impair the objectivity of the services to | 3 | | be provided by the prospective advisor. During the course of | 4 | | the advisor's engagement by the Department, and for a period of | 5 | | one year thereafter, the advisor shall not enter into any | 6 | | business or financial relationship with any offeror or any | 7 | | vendor identified to assist an offeror in performing its | 8 | | obligations under the management agreement. Any advisor | 9 | | retained by the Department shall be disqualified from being an | 10 | | offeror.
The Department shall not include terms in the request | 11 | | for qualifications that provide a material advantage whether | 12 | | directly or indirectly to any potential offeror, or any | 13 | | contractor or subcontractor presently providing goods, | 14 | | services, or equipment to the Department to support the | 15 | | Lottery, including terms contained in previous responses to | 16 | | requests for proposals or qualifications submitted to | 17 | | Illinois, another State or foreign government when those terms | 18 | | are uniquely associated with a particular potential offeror, | 19 | | contractor, or subcontractor. The request for proposals | 20 | | offered by the Department on December 22, 2008 as | 21 | | "LOT08GAMESYS" and reference number "22016176" is declared | 22 | | void. | 23 | | (g) The Department shall select at least 2 offerors as | 24 | | finalists to potentially serve as the private manager no later | 25 | | than August 9, 2010. Upon making preliminary selections, the | 26 | | Department shall schedule a public hearing on the finalists' |
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| 1 | | proposals and provide public notice of the hearing at least 7 | 2 | | calendar days before the hearing. The notice must include all | 3 | | of the following: | 4 | | (1) The date, time, and place of the hearing. | 5 | | (2) The subject matter of the hearing. | 6 | | (3) A brief description of the management agreement to | 7 | | be awarded. | 8 | | (4) The identity of the offerors that have been | 9 | | selected as finalists to serve as the private manager. | 10 | | (5) The address and telephone number of the Department. | 11 | | (h) At the public hearing, the Department shall (i) provide | 12 | | sufficient time for each finalist to present and explain its | 13 | | proposal to the Department and the Governor or the Governor's | 14 | | designee, including an opportunity to respond to questions | 15 | | posed by the Department, Governor, or designee and (ii) allow | 16 | | the public and non-selected offerors to comment on the | 17 | | presentations. The Governor or a designee shall attend the | 18 | | public hearing. After the public hearing, the Department shall | 19 | | have 14 calendar days to recommend to the Governor whether a | 20 | | management agreement should be entered into with a particular | 21 | | finalist. After reviewing the Department's recommendation, the | 22 | | Governor may accept or reject the Department's recommendation, | 23 | | and shall select a final offeror as the private manager by | 24 | | publication of a notice in the Illinois Procurement Bulletin on | 25 | | or before September 15, 2010. The Governor shall include in the | 26 | | notice a detailed explanation and the reasons why the final |
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| 1 | | offeror is superior to other offerors and will provide | 2 | | management services in a manner that best achieves the | 3 | | objectives of this Section. The Governor shall also sign the | 4 | | management agreement with the private manager. | 5 | | (i) Any action to contest the private manager selected by | 6 | | the Governor under this Section must be brought within 7 | 7 | | calendar days after the publication of the notice of the | 8 | | designation of the private manager as provided in subsection | 9 | | (h) of this Section. | 10 | | (j) The Lottery shall remain, for so long as a private | 11 | | manager manages the Lottery in accordance with provisions of | 12 | | this Act, a Lottery conducted by the State, and the State shall | 13 | | not be authorized to sell or transfer the Lottery to a third | 14 | | party. | 15 | | (k) Any tangible personal property used exclusively in | 16 | | connection with the lottery that is owned by the Department and | 17 | | leased to the private manager shall be owned by the Department | 18 | | in the name of the State and shall be considered to be public | 19 | | property devoted to an essential public and governmental | 20 | | function. | 21 | | (l) The Department may exercise any of its powers under | 22 | | this Section or any other law as necessary or desirable for the | 23 | | execution of the Department's powers under this Section. | 24 | | (m) Neither this Section nor any management agreement | 25 | | entered into under this Section prohibits the General Assembly | 26 | | from authorizing forms of gambling that are not in direct |
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| 1 | | competition with the Lottery. | 2 | | (n) The private manager shall be subject to a complete | 3 | | investigation in the third, seventh, and tenth years of the | 4 | | agreement (if the agreement is for a 10-year term) by the | 5 | | Department in cooperation with the Auditor General to determine | 6 | | whether the private manager has complied with this Section and | 7 | | the management agreement. The private manager shall bear the | 8 | | cost of an investigation or reinvestigation of the private | 9 | | manager under this subsection. | 10 | | (o) The powers conferred by this Section are in addition | 11 | | and supplemental to the powers conferred by any other law. If | 12 | | any other law or rule is inconsistent with this Section, | 13 | | including, but not limited to, provisions of the Illinois | 14 | | Procurement Code, then this Section controls as to any | 15 | | management agreement entered into under this Section. This | 16 | | Section and any rules adopted under this Section contain full | 17 | | and complete authority for a management agreement between the | 18 | | Department and a private manager. No law, procedure, | 19 | | proceeding, publication, notice, consent, approval, order, or | 20 | | act by the Department or any other officer, Department, agency, | 21 | | or instrumentality of the State or any political subdivision is | 22 | | required for the Department to enter into a management | 23 | | agreement under this Section. This Section contains full and | 24 | | complete authority for the Department to approve any contracts | 25 | | entered into by a private manager with a vendor providing | 26 | | goods, services, or both goods and services to the private |
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| 1 | | manager under the terms of the management agreement, including | 2 | | subcontractors of such vendors. | 3 | | Upon receipt of a written request from the Chief | 4 | | Procurement Officer, the Department shall provide to the Chief | 5 | | Procurement Officer a complete and un-redacted copy of the | 6 | | management agreement or any contract that is subject to the | 7 | | Department's approval authority under this subsection (o). The | 8 | | Department shall provide a copy of the agreement or contract to | 9 | | the Chief Procurement Officer in the time specified by the | 10 | | Chief Procurement Officer in his or her written request, but no | 11 | | later than 5 business days after the request is received by the | 12 | | Department. The Chief Procurement Officer must retain any | 13 | | portions of the management agreement or of any contract | 14 | | designated by the Department as confidential, proprietary, or | 15 | | trade secret information in complete confidence pursuant to | 16 | | subsection (g) of Section 7 of the Freedom of Information Act. | 17 | | The Department shall also provide the Chief Procurement Officer | 18 | | with reasonable advance written notice of any contract that is | 19 | | pending Department approval. | 20 | | Notwithstanding any other provision of this Section to the | 21 | | contrary, the Chief Procurement Officer shall adopt | 22 | | administrative rules, including emergency rules, to establish | 23 | | a procurement process to select a successor private manager if | 24 | | a private management agreement has been terminated. The | 25 | | selection process shall at a minimum take into account the | 26 | | criteria set forth in items (1) through (4) of subsection (e) |
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| 1 | | of this Section and may include provisions consistent with | 2 | | subsections (f), (g), (h), and (i) of this Section. The Chief | 3 | | Procurement Officer shall also implement and administer the | 4 | | adopted selection process upon the termination of a private | 5 | | management agreement. The Department, after the Chief | 6 | | Procurement Officer certifies that the procurement process has | 7 | | been followed in accordance with the rules adopted under this | 8 | | subsection (o), shall select a final offeror as the private | 9 | | manager and sign the management agreement with the private | 10 | | manager. | 11 | | Except as provided in Sections 21.5, 21.6, 21.7, 21.8, and | 12 | | 21.9 , and 21.10 , the Department shall distribute all proceeds | 13 | | of lottery tickets and shares sold in the following priority | 14 | | and manner: | 15 | | (1) The payment of prizes and retailer bonuses. | 16 | | (2) The payment of costs incurred in the operation and | 17 | | administration of the Lottery, including the payment of | 18 | | sums due to the private manager under the management | 19 | | agreement with the Department. | 20 | | (3) On the last day of each month or as soon thereafter | 21 | | as possible, the State Comptroller shall direct and the | 22 | | State Treasurer shall transfer from the State Lottery Fund | 23 | | to the Common School Fund an amount that is equal to the | 24 | | proceeds transferred in the corresponding month of fiscal | 25 | | year 2009, as adjusted for inflation, to the Common School | 26 | | Fund. |
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| 1 | | (4) On or before the last day of each fiscal year, | 2 | | deposit any remaining proceeds, subject to payments under | 3 | | items (1), (2), and (3) into the Capital Projects Fund each | 4 | | fiscal year. | 5 | | (p) The Department shall be subject to the following | 6 | | reporting and information request requirements: | 7 | | (1) the Department shall submit written quarterly | 8 | | reports to the Governor and the General Assembly on the | 9 | | activities and actions of the private manager selected | 10 | | under this Section; | 11 | | (2) upon request of the Chief Procurement Officer, the | 12 | | Department shall promptly produce information related to | 13 | | the procurement activities of the Department and the | 14 | | private manager requested by the Chief Procurement | 15 | | Officer; the Chief Procurement Officer must retain | 16 | | confidential, proprietary, or trade secret information | 17 | | designated by the Department in complete confidence | 18 | | pursuant to subsection (g) of Section 7 of the Freedom of | 19 | | Information Act; and | 20 | | (3) at least 30 days prior to the beginning of the | 21 | | Department's fiscal year, the Department shall prepare an | 22 | | annual written report on the activities of the private | 23 | | manager selected under this Section and deliver that report | 24 | | to the Governor and General Assembly. | 25 | | (Source: P.A. 99-933, eff. 1-27-17; 100-391, eff. 8-25-17.)
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| 1 | | (20 ILCS 1605/20) (from Ch. 120, par. 1170)
| 2 | | Sec. 20. State Lottery Fund.
| 3 | | (a) There is created in the State Treasury a special fund | 4 | | to be
known as the "State Lottery Fund". Such fund shall | 5 | | consist of all revenues
received from (1) the sale of lottery | 6 | | tickets or shares, (net of
commissions, fees
representing those | 7 | | expenses that are directly proportionate to the
sale of tickets | 8 | | or shares at the agent location, and prizes of less
than
$600 | 9 | | which
have been validly paid at the agent
level), (2) | 10 | | application fees,
and (3) all other sources including moneys | 11 | | credited or transferred thereto
from
any other fund
or source | 12 | | pursuant to law. Interest earnings of the State Lottery Fund
| 13 | | shall be credited to the Common School Fund.
| 14 | | (b) The receipt and distribution of moneys under Section | 15 | | 21.5 of this Act shall be in accordance with Section 21.5.
| 16 | | (c) The receipt and distribution of moneys under Section | 17 | | 21.6 of this Act shall be in accordance with Section 21.6. | 18 | | (d) The receipt and distribution of moneys under Section | 19 | | 21.7 of this Act shall be in accordance with Section 21.7.
| 20 | | (e)
The receipt and distribution of moneys under Section | 21 | | 21.8
of this Act shall be in accordance with Section 21.8.
| 22 | | (f) The receipt and distribution of moneys under Section | 23 | | 21.9 of this Act shall be in accordance with Section 21.9. | 24 | | (g) The receipt and distribution of moneys under Section | 25 | | 21.10 of this Act shall be in accordance with Section 21.10. | 26 | | (Source: P.A. 98-649, eff. 6-16-14.)
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| 1 | | (20 ILCS 1605/21.10 new) | 2 | | Sec. 21.10. Scratch-off for homelessness prevention | 3 | | programs. | 4 | | (a) The Department shall offer a special instant | 5 | | scratch-off game to fund homelessness prevention programs. The | 6 | | game shall commence on July 1, 2019 or as soon thereafter, at | 7 | | the discretion of the Director, as is reasonably practical. The | 8 | | operation of the game shall be governed by this Act and any | 9 | | rules adopted by the Department. If any provision of this | 10 | | Section is inconsistent with any other provision of this Act, | 11 | | then this Section governs. | 12 | | (b) The Homelessness Prevention Revenue Fund is created as | 13 | | a special fund in the State treasury. The net revenue from the | 14 | | scratch-off game to fund homelessness prevention programs | 15 | | shall be deposited into the Homelessness Prevention Revenue | 16 | | Fund. Subject to appropriation, moneys in the Fund shall be | 17 | | used by the Department of Human Services solely for grants to | 18 | | homelessness prevention and assistance projects under the | 19 | | Homelessness Prevention Act. | 20 | | As used in this subsection, "net revenue" means the total | 21 | | amount for which tickets have been sold less the sum of the | 22 | | amount paid out in the prizes and the actual administrative | 23 | | expenses of the Department solely related to the scratch-off | 24 | | game under this Section. | 25 | | (c) During the time that tickets are sold for the |
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| 1 | | scratch-off game to fund homelessness prevention programs, the | 2 | | Department shall not unreasonably diminish the efforts devoted | 3 | | to marketing any other instant scratch-off lottery game. | 4 | | (d) The Department may adopt any rules necessary to | 5 | | implement and administer the provisions of this Section. | 6 | | (e) Nothing in this Section shall be construed to affect | 7 | | any revenue that any Homelessness Prevention line item receives | 8 | | through the General Revenue Fund or the Illinois Affordable | 9 | | Housing Trust Fund.
| 10 | | Section 10. The State Finance Act is amended by adding | 11 | | Section 5.886 as follows: | 12 | | (30 ILCS 105/5.886 new) | 13 | | Sec. 5.886. The Homelessness Prevention Revenue Fund. | 14 | | Section 95. No acceleration or delay. Where this Act makes | 15 | | changes in a statute that is represented in this Act by text | 16 | | that is not yet or no longer in effect (for example, a Section | 17 | | represented by multiple versions), the use of that text does | 18 | | not accelerate or delay the taking effect of (i) the changes | 19 | | made by this Act or (ii) provisions derived from any other | 20 | | Public Act.
| 21 | | Section 99. Effective date. This Act takes effect upon | 22 | | becoming law.
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