Full Text of HB5229 103rd General Assembly
HB5229eng 103RD GENERAL ASSEMBLY | | | HB5229 Engrossed | | LRB103 38855 AWJ 68992 b |
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| 1 | | AN ACT concerning State government. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Section 5. The Illinois Lottery Law is amended by changing | 5 | | Sections 7.1, 9.1, 10.1, 10.6, 19, 20, 20.1, 24, and 27 as | 6 | | follows: | 7 | | (20 ILCS 1605/7.1) (from Ch. 120, par. 1157.1) | 8 | | Sec. 7.1. The Department shall promulgate such rules and | 9 | | regulations governing the establishment and operation of a | 10 | | State lottery as it deems necessary to carry out the purposes | 11 | | of this Act. Such rules and regulations shall be subject to the | 12 | | provisions of The Illinois Administrative Procedure Act. The | 13 | | Department shall issue written game rules, play instructions, | 14 | | directives, operations manuals, brochures, or any other | 15 | | publications necessary to conduct specific games, as | 16 | | authorized by rule by the Department. Any written game rules, | 17 | | play instructions, directives, operations manuals, brochures, | 18 | | or other game publications issued by the Department that | 19 | | relate to a specific lottery game shall be maintained as a | 20 | | public record in the Department's principal office, and made | 21 | | available for public inspection and copying but shall be | 22 | | exempt from the rulemaking procedures of the Illinois | 23 | | Administrative Procedure Act. However, when such written |
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| 1 | | materials contain any policy of general applicability, the | 2 | | Department shall formulate and adopt such policy as a rule in | 3 | | accordance with the provisions of the Illinois Administrative | 4 | | Procedure Act. In addition, the Department shall publish each | 5 | | January in the Illinois Register a list of all game-specific | 6 | | rules, play instructions, directives, operations manuals, | 7 | | brochures, or other game-specific publications issued by the | 8 | | Department during the previous year and instructions | 9 | | concerning how the public may obtain copies of these materials | 10 | | from the Department. | 11 | | (Source: P.A. 97-464, eff. 10-15-11.) | 12 | | (20 ILCS 1605/9.1) | 13 | | Sec. 9.1. Private manager and management agreement. | 14 | | (a) As used in this Section: | 15 | | "Offeror" means a person or group of persons that responds | 16 | | to a request for qualifications under this Section. | 17 | | "Request for qualifications" means all materials and | 18 | | documents prepared by the Department to solicit the following | 19 | | from offerors: | 20 | | (1) Statements of qualifications. | 21 | | (2) Proposals to enter into a management agreement, | 22 | | including the identity of any prospective vendor or | 23 | | vendors that the offeror intends to initially engage to | 24 | | assist the offeror in performing its obligations under the | 25 | | management agreement. |
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| 1 | | "Final offer" means the last proposal submitted by an | 2 | | offeror in response to the request for qualifications, | 3 | | including the identity of any prospective vendor or vendors | 4 | | that the offeror intends to initially engage to assist the | 5 | | offeror in performing its obligations under the management | 6 | | agreement. | 7 | | "Final offeror" means the offeror ultimately selected by | 8 | | the Governor to be the private manager for the Lottery under | 9 | | subsection (h) of this Section. | 10 | | (b) (Blank). By September 15, 2010, the Governor shall | 11 | | select a private manager for the total management of the | 12 | | Lottery with integrated functions, such as lottery game | 13 | | design, supply of goods and services, and advertising and as | 14 | | specified in this Section. | 15 | | (c) (Blank). Pursuant to the terms of this subsection, the | 16 | | Department shall endeavor to expeditiously terminate the | 17 | | existing contracts in support of the Lottery in effect on July | 18 | | 13, 2009 (the effective date of Public Act 96-37) in | 19 | | connection with the selection of the private manager. As part | 20 | | of its obligation to terminate these contracts and select the | 21 | | private manager, the Department shall establish a mutually | 22 | | agreeable timetable to transfer the functions of existing | 23 | | contractors to the private manager so that existing Lottery | 24 | | operations are not materially diminished or impaired during | 25 | | the transition. To that end, the Department shall do the | 26 | | following: |
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| 1 | | (1) where such contracts contain a provision | 2 | | authorizing termination upon notice, the Department shall | 3 | | provide notice of termination to occur upon the mutually | 4 | | agreed timetable for transfer of functions; | 5 | | (2) upon the expiration of any initial term or renewal | 6 | | term of the current Lottery contracts, the Department | 7 | | shall not renew such contract for a term extending beyond | 8 | | the mutually agreed timetable for transfer of functions; | 9 | | or | 10 | | (3) in the event any current contract provides for | 11 | | termination of that contract upon the implementation of a | 12 | | contract with the private manager, the Department shall | 13 | | perform all necessary actions to terminate the contract on | 14 | | the date that coincides with the mutually agreed timetable | 15 | | for transfer of functions. | 16 | | If the contracts to support the current operation of the | 17 | | Lottery in effect on July 13, 2009 (the effective date of | 18 | | Public Act 96-34) are not subject to termination as provided | 19 | | for in this subsection (c), then the Department may include a | 20 | | provision in the contract with the private manager specifying | 21 | | a mutually agreeable methodology for incorporation. | 22 | | (c-5) The Department shall include provisions in the | 23 | | management agreement whereby the private manager shall, for a | 24 | | fee, and pursuant to a contract negotiated with the Department | 25 | | (the "Employee Use Contract"), utilize the services of current | 26 | | Department employees to assist in the administration and |
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| 1 | | operation of the Lottery. The Department shall be the employer | 2 | | of all such bargaining unit employees assigned to perform such | 3 | | work for the private manager, and such employees shall be | 4 | | State employees, as defined by the Personnel Code. Department | 5 | | employees shall operate under the same employment policies, | 6 | | rules, regulations, and procedures, as other employees of the | 7 | | Department. In addition, neither historical representation | 8 | | rights under the Illinois Public Labor Relations Act, nor | 9 | | existing collective bargaining agreements, shall be disturbed | 10 | | by the management agreement with the private manager for the | 11 | | management of the Lottery. | 12 | | (d) The management agreement with the private manager | 13 | | shall include all of the following: | 14 | | (1) A term not to exceed 10 years, including any | 15 | | renewals. | 16 | | (2) A provision specifying that the Department: | 17 | | (A) shall exercise actual control over all | 18 | | significant business decisions; | 19 | | (A-5) has the authority to direct or countermand | 20 | | operating decisions by the private manager at any | 21 | | time; | 22 | | (B) has ready access at any time to information | 23 | | regarding Lottery operations; | 24 | | (C) has the right to demand and receive | 25 | | information from the private manager concerning any | 26 | | aspect of the Lottery operations at any time; and |
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| 1 | | (D) retains ownership of all trade names, | 2 | | trademarks, and intellectual property associated with | 3 | | the Lottery. | 4 | | (3) A provision imposing an affirmative duty on the | 5 | | private manager to provide the Department with material | 6 | | information and with any information the private manager | 7 | | reasonably believes the Department would want to know to | 8 | | enable the Department to conduct the Lottery. | 9 | | (4) A provision requiring the private manager to | 10 | | provide the Department with advance notice of any | 11 | | operating decision that bears significantly on the public | 12 | | interest, including, but not limited to, decisions on the | 13 | | kinds of games to be offered to the public and decisions | 14 | | affecting the relative risk and reward of the games being | 15 | | offered, so the Department has a reasonable opportunity to | 16 | | evaluate and countermand that decision. | 17 | | (5) A provision providing for compensation of the | 18 | | private manager that may consist of, among other things, a | 19 | | fee for services and a performance based bonus as | 20 | | consideration for managing the Lottery, including terms | 21 | | that may provide the private manager with an increase in | 22 | | compensation if Lottery revenues grow by a specified | 23 | | percentage in a given year . | 24 | | (6) (Blank). | 25 | | (7) A provision requiring the deposit of all Lottery | 26 | | proceeds to be deposited into the State Lottery Fund |
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| 1 | | except as otherwise provided in Section 20 of this Act. | 2 | | (8) A provision requiring the private manager to | 3 | | locate its principal office within the State. | 4 | | (8-5) A provision encouraging that , pursuant to | 5 | | Section 4 of the Business Enterprise for Minorities, | 6 | | Women, and Persons with Disabilities Act, at least 20% of | 7 | | the cost of contracts entered into for goods and services | 8 | | by the private manager in connection with its management | 9 | | of the Lottery, other than contracts with sales agents or | 10 | | technical advisors, be awarded to businesses that are a | 11 | | minority-owned business, a women-owned business, or a | 12 | | business owned by a person with disability, as those terms | 13 | | are defined in the Business Enterprise for Minorities, | 14 | | Women, and Persons with Disabilities Act. | 15 | | (9) A requirement that so long as the private manager | 16 | | complies with all the conditions of the agreement under | 17 | | the oversight of the Department, the private manager shall | 18 | | have the following duties and obligations with respect to | 19 | | the management of the Lottery: | 20 | | (A) The right to use equipment and other assets | 21 | | used in the operation of the Lottery. | 22 | | (B) The rights and obligations under contracts | 23 | | with retailers and vendors. | 24 | | (C) The implementation of a comprehensive security | 25 | | program by the private manager. | 26 | | (D) The implementation of a comprehensive system |
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| 1 | | of internal audits. | 2 | | (E) The implementation of a program by the private | 3 | | manager to curb compulsive gambling by persons playing | 4 | | the Lottery. | 5 | | (F) A system for determining (i) the type of | 6 | | Lottery games, (ii) the method of selecting winning | 7 | | tickets, (iii) the manner of payment of prizes to | 8 | | holders of winning tickets, (iv) the frequency of | 9 | | drawings of winning tickets, (v) the method to be used | 10 | | in selling tickets, (vi) a system for verifying the | 11 | | validity of tickets claimed to be winning tickets, | 12 | | (vii) the basis upon which retailer commissions are | 13 | | established by the manager, and (viii) minimum | 14 | | payouts. | 15 | | (10) A requirement that advertising and promotion must | 16 | | be consistent with Section 7.8a of this Act. | 17 | | (11) A requirement that the private manager market the | 18 | | Lottery to those residents who are new, infrequent, or | 19 | | lapsed players of the Lottery, especially those who are | 20 | | most likely to make regular purchases on the Internet as | 21 | | permitted by law. | 22 | | (12) A code of ethics for the private manager's | 23 | | officers and employees. | 24 | | (13) A requirement that the Department monitor and | 25 | | oversee the private manager's practices and take action | 26 | | that the Department considers appropriate to ensure that |
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| 1 | | the private manager is in compliance with the terms of the | 2 | | management agreement, while allowing the manager, unless | 3 | | specifically prohibited by law or the management | 4 | | agreement, to negotiate and sign its own contracts with | 5 | | vendors. | 6 | | (14) A provision requiring the private manager to | 7 | | periodically file, at least on an annual basis, | 8 | | appropriate financial statements in a form and manner | 9 | | acceptable to the Department. | 10 | | (15) Cash reserves requirements. | 11 | | (16) Procedural requirements for obtaining the prior | 12 | | approval of the Department when a management agreement or | 13 | | an interest in a management agreement is sold, assigned, | 14 | | transferred, or pledged as collateral to secure financing. | 15 | | (17) Grounds for the termination of the management | 16 | | agreement by the Department or the private manager. | 17 | | (18) Procedures for amendment of the agreement. | 18 | | (19) A provision requiring the private manager to | 19 | | engage in an open and competitive bidding process for any | 20 | | procurement having a cost in excess of the small purchase | 21 | | limits under Section 20-20 of the Illinois Procurement | 22 | | Code $50,000 that is not a part of the private manager's | 23 | | final offer. The process shall favor the selection of a | 24 | | vendor deemed to have submitted a proposal that provides | 25 | | the Lottery with the best overall value. The process shall | 26 | | not be subject to the provisions of the Illinois |
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| 1 | | Procurement Code, unless specifically required by the | 2 | | management agreement. | 3 | | (20) The transition of rights and obligations, | 4 | | including any associated equipment or other assets used in | 5 | | the operation of the Lottery, from the manager to any | 6 | | successor manager of the lottery, including the | 7 | | Department, following the termination of or foreclosure | 8 | | upon the management agreement. | 9 | | (21) Right of use of copyrights, trademarks, and | 10 | | service marks held by the Department in the name of the | 11 | | State. The agreement must provide that any use of them by | 12 | | the manager shall only be for the purpose of fulfilling | 13 | | its obligations under the management agreement during the | 14 | | term of the agreement. | 15 | | (22) The disclosure of any information requested by | 16 | | the Department to enable it to comply with the reporting | 17 | | requirements and information requests provided for under | 18 | | subsection (p) of this Section. | 19 | | (e) Notwithstanding any other law to the contrary, the | 20 | | Department shall select a private manager through a | 21 | | competitive request for qualifications process consistent with | 22 | | Section 20-35 of the Illinois Procurement Code, which shall | 23 | | take into account: | 24 | | (1) the offeror's ability to market the Lottery to | 25 | | those residents who are new, infrequent, or lapsed players | 26 | | of the Lottery, especially those who are most likely to |
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| 1 | | make regular purchases on the Internet; | 2 | | (2) the offeror's ability to address the State's | 3 | | concern with the social effects of gambling on those who | 4 | | can least afford to do so; | 5 | | (3) the offeror's ability to provide the most | 6 | | successful management of the Lottery for the benefit of | 7 | | the people of the State based on current and past business | 8 | | practices or plans of the offeror; and | 9 | | (4) the offeror's poor or inadequate past performance | 10 | | in servicing, equipping, operating or managing a lottery | 11 | | on behalf of Illinois, another State or foreign government | 12 | | and attracting persons who are not currently regular | 13 | | players of a lottery. | 14 | | (f) The Department may retain the services of an advisor | 15 | | or advisors with significant experience in financial services | 16 | | or the management, operation, and procurement of goods, | 17 | | services, and equipment for a government-run lottery to assist | 18 | | in the preparation of the terms of the request for | 19 | | qualifications and selection of the private manager. Any | 20 | | prospective advisor seeking to provide services under this | 21 | | subsection (f) shall disclose any material business or | 22 | | financial relationship during the past 3 years with any | 23 | | potential offeror, or with a contractor or subcontractor | 24 | | presently providing goods, services, or equipment to the | 25 | | Department to support the Lottery. The Department shall | 26 | | evaluate the material business or financial relationship of |
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| 1 | | each prospective advisor. The Department shall not select any | 2 | | prospective advisor with a substantial business or financial | 3 | | relationship that the Department deems to impair the | 4 | | objectivity of the services to be provided by the prospective | 5 | | advisor. During the course of the advisor's engagement by the | 6 | | Department, and for a period of one year thereafter, the | 7 | | advisor shall not enter into any business or financial | 8 | | relationship with any offeror or any vendor identified to | 9 | | assist an offeror in performing its obligations under the | 10 | | management agreement. Any advisor retained by the Department | 11 | | shall be disqualified from being an offeror. The Department | 12 | | shall not include terms in the request for qualifications that | 13 | | provide a material advantage whether directly or indirectly to | 14 | | any potential offeror, or any contractor or subcontractor | 15 | | presently providing goods, services, or equipment to the | 16 | | Department to support the Lottery, including terms contained | 17 | | in previous responses to requests for proposals or | 18 | | qualifications submitted to Illinois, another State or foreign | 19 | | government when those terms are uniquely associated with a | 20 | | particular potential offeror, contractor, or subcontractor. | 21 | | The request for proposals offered by the Department on | 22 | | December 22, 2008 as "LOT08GAMESYS" and reference number | 23 | | "22016176" is declared void. | 24 | | (g) The Department shall select at least 2 offerors as | 25 | | finalists to potentially serve as the private manager no later | 26 | | than August 9, 2010. Upon making preliminary selections, the |
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| 1 | | Department shall schedule a public hearing on the finalists' | 2 | | proposals and provide public notice of the hearing at least 7 | 3 | | calendar days before the hearing. The notice must include all | 4 | | of the following: | 5 | | (1) The date, time, and place of the hearing. | 6 | | (2) The subject matter of the hearing. | 7 | | (3) A brief description of the management agreement to | 8 | | be awarded. | 9 | | (4) The identity of the offerors that have been | 10 | | selected as finalists to serve as the private manager. | 11 | | (5) The address and telephone number of the | 12 | | Department. | 13 | | (h) At the public hearing, the Department shall (i) | 14 | | provide sufficient time for each finalist to present and | 15 | | explain its proposal to the Department and the Governor or the | 16 | | Governor's designee, including an opportunity to respond to | 17 | | questions posed by the Department, Governor, or designee and | 18 | | (ii) allow the public and non-selected offerors to comment on | 19 | | the presentations. The Governor or a designee shall attend the | 20 | | public hearing. After the public hearing, the Department shall | 21 | | have 14 calendar days to recommend to the Governor whether a | 22 | | management agreement should be entered into with a particular | 23 | | finalist. After reviewing the Department's recommendation, the | 24 | | Governor may accept or reject the Department's recommendation, | 25 | | and shall select a final offeror as the private manager by | 26 | | publication of a notice in the Illinois Procurement Bulletin |
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| 1 | | on or before September 15, 2010 . The Governor shall include in | 2 | | the notice a detailed explanation and the reasons why the | 3 | | final offeror is superior to other offerors and will provide | 4 | | management services in a manner that best achieves the | 5 | | objectives of this Section. The Governor shall also sign the | 6 | | management agreement with the private manager. | 7 | | (i) Any action to contest the private manager selected by | 8 | | the Governor under this Section must be brought within 7 | 9 | | calendar days after the publication of the notice of the | 10 | | designation of the private manager as provided in subsection | 11 | | (h) of this Section. | 12 | | (j) The Lottery shall remain, for so long as a private | 13 | | manager manages the Lottery in accordance with provisions of | 14 | | this Act, a Lottery conducted by the State, and the State shall | 15 | | not be authorized to sell or transfer the Lottery to a third | 16 | | party. | 17 | | (k) Any tangible personal property used exclusively in | 18 | | connection with the lottery that is owned by the Department | 19 | | and leased to the private manager shall be owned by the | 20 | | Department in the name of the State and shall be considered to | 21 | | be public property devoted to an essential public and | 22 | | governmental function. | 23 | | (l) The Department may exercise any of its powers under | 24 | | this Section or any other law as necessary or desirable for the | 25 | | execution of the Department's powers under this Section. | 26 | | (m) Neither this Section nor any management agreement |
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| 1 | | entered into under this Section prohibits the General Assembly | 2 | | from authorizing forms of gambling that are not in direct | 3 | | competition with the Lottery. The forms of gambling authorized | 4 | | by Public Act 101-31 constitute authorized forms of gambling | 5 | | that are not in direct competition with the Lottery. | 6 | | (n) The private manager shall be subject to a complete | 7 | | investigation in the third, seventh, and tenth years of the | 8 | | agreement (if the agreement is for a 10-year term) by the | 9 | | Department in cooperation with the Auditor General to | 10 | | determine whether the private manager has complied with this | 11 | | Section and the management agreement. The private manager | 12 | | shall bear the cost of an investigation or reinvestigation of | 13 | | the private manager under this subsection. | 14 | | (o) The powers conferred by this Section are in addition | 15 | | and supplemental to the powers conferred by any other law. If | 16 | | any other law or rule is inconsistent with this Section, | 17 | | including, but not limited to, provisions of the Illinois | 18 | | Procurement Code, then this Section controls as to any | 19 | | management agreement entered into under this Section. This | 20 | | Section and any rules adopted under this Section contain full | 21 | | and complete authority for a management agreement between the | 22 | | Department and a private manager. No law, procedure, | 23 | | proceeding, publication, notice, consent, approval, order, or | 24 | | act by the Department or any other officer, Department, | 25 | | agency, or instrumentality of the State or any political | 26 | | subdivision is required for the Department to enter into a |
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| 1 | | management agreement under this Section. This Section contains | 2 | | full and complete authority for the Department to approve any | 3 | | contracts entered into by a private manager with a vendor | 4 | | providing goods, services, or both goods and services to the | 5 | | private manager under the terms of the management agreement, | 6 | | including subcontractors of such vendors. | 7 | | Upon receipt of a written request from the Chief | 8 | | Procurement Officer, the Department shall provide to the Chief | 9 | | Procurement Officer a complete and un-redacted copy of the | 10 | | management agreement or any contract that is subject to the | 11 | | Department's approval authority under this subsection (o). The | 12 | | Department shall provide a copy of the agreement or contract | 13 | | to the Chief Procurement Officer in the time specified by the | 14 | | Chief Procurement Officer in his or her written request, but | 15 | | no later than 5 business days after the request is received by | 16 | | the Department. The Chief Procurement Officer must retain any | 17 | | portions of the management agreement or of any contract | 18 | | designated by the Department as confidential, proprietary, or | 19 | | trade secret information in complete confidence pursuant to | 20 | | subsection (g) of Section 7 of the Freedom of Information Act. | 21 | | The Department shall also provide the Chief Procurement | 22 | | Officer with reasonable advance written notice of any contract | 23 | | that is pending Department approval. | 24 | | Notwithstanding any other provision of this Section to the | 25 | | contrary, the Chief Procurement Officer shall adopt | 26 | | administrative rules, including emergency rules, to establish |
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| 1 | | a procurement process to select a successor private manager if | 2 | | a private management agreement has been terminated. The | 3 | | selection process shall at a minimum take into account the | 4 | | criteria set forth in items (1) through (4) of subsection (e) | 5 | | of this Section and may include provisions consistent with | 6 | | subsections (f), (g), (h), and (i) of this Section. The Chief | 7 | | Procurement Officer shall also implement and administer the | 8 | | adopted selection process upon the termination of a private | 9 | | management agreement. The Department, after the Chief | 10 | | Procurement Officer certifies that the procurement process has | 11 | | been followed in accordance with the rules adopted under this | 12 | | subsection (o), shall select a final offeror as the private | 13 | | manager and sign the management agreement with the private | 14 | | manager. | 15 | | Through June 30, 2022, except as provided in Sections | 16 | | 21.5, 21.6, 21.7, 21.8, 21.9, 21.10, 21.11, 21.12, and 21.13 | 17 | | of this Act and Section 25-70 of the Sports Wagering Act, the | 18 | | Department shall distribute all proceeds of lottery tickets | 19 | | and shares sold in the following priority and manner: | 20 | | (1) The payment of prizes and retailer bonuses. | 21 | | (2) The payment of costs incurred in the operation and | 22 | | administration of the Lottery, including the payment of | 23 | | sums due to the private manager under the management | 24 | | agreement with the Department. | 25 | | (3) On the last day of each month or as soon thereafter | 26 | | as possible, the State Comptroller shall direct and the |
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| 1 | | State Treasurer shall transfer from the State Lottery Fund | 2 | | to the Common School Fund an amount that is equal to the | 3 | | proceeds transferred in the corresponding month of fiscal | 4 | | year 2009, as adjusted for inflation, to the Common School | 5 | | Fund. | 6 | | (4) On or before September 30 of each fiscal year, | 7 | | deposit any estimated remaining proceeds from the prior | 8 | | fiscal year, subject to payments under items (1), (2), and | 9 | | (3), into the Capital Projects Fund. Beginning in fiscal | 10 | | year 2019, the amount deposited shall be increased or | 11 | | decreased each year by the amount the estimated payment | 12 | | differs from the amount determined from each year-end | 13 | | financial audit. Only remaining net deficits from prior | 14 | | fiscal years may reduce the requirement to deposit these | 15 | | funds, as determined by the annual financial audit. | 16 | | Beginning July 1, 2022, the Department shall distribute | 17 | | all proceeds of lottery tickets and shares sold in the manner | 18 | | and priority described in Section 9.3 of this Act, except that | 19 | | the Department shall make the deposit into the Capital | 20 | | Projects Fund that would have occurred under item (4) of this | 21 | | subsection (o) on or before September 30, 2022, but for the | 22 | | changes made to this subsection by Public Act 102-699. | 23 | | (p) The Department shall be subject to the following | 24 | | reporting and information request requirements: | 25 | | (1) the Department shall submit written quarterly | 26 | | reports to the Governor and the General Assembly on the |
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| 1 | | activities and actions of the private manager selected | 2 | | under this Section; | 3 | | (2) upon request of the Chief Procurement Officer, the | 4 | | Department shall promptly produce information related to | 5 | | the procurement activities of the Department and the | 6 | | private manager requested by the Chief Procurement | 7 | | Officer; the Chief Procurement Officer must retain | 8 | | confidential, proprietary, or trade secret information | 9 | | designated by the Department in complete confidence | 10 | | pursuant to subsection (g) of Section 7 of the Freedom of | 11 | | Information Act; and | 12 | | (3) at least 30 days prior to the beginning of the | 13 | | Department's fiscal year, the Department shall prepare an | 14 | | annual written report on the activities of the private | 15 | | manager selected under this Section and deliver that | 16 | | report to the Governor and General Assembly. | 17 | | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; | 18 | | 101-561, eff. 8-23-19; 102-558, eff. 8-20-21; 102-699, eff. | 19 | | 4-19-22; 102-1115, eff. 1-9-23.) | 20 | | (20 ILCS 1605/10.1) (from Ch. 120, par. 1160.1) | 21 | | Sec. 10.1. The following are ineligible for any license | 22 | | under this Act: | 23 | | (a) any person who has been convicted of a felony; | 24 | | (b) any person who is or has been a professional | 25 | | gambler or gambling promoter; |
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| 1 | | (c) any person who has engaged in bookmaking or other | 2 | | forms of illegal gambling; | 3 | | (d) any person who is not of good character and | 4 | | reputation in the community in which he resides; | 5 | | (e) any person who has been found guilty of any fraud | 6 | | or misrepresentation in any connection; | 7 | | (f) any firm or corporation in which a person defined | 8 | | in item (a), (b), (c), (d) , or (e) has a proprietary, | 9 | | equitable or credit interest of 5% or more ; . | 10 | | (g) any organization in which a person defined in item | 11 | | (a), (b), (c), (d) , or (e) is an officer, director, or | 12 | | managing agent, whether compensated or not; and | 13 | | (h) any organization in which a person defined in item | 14 | | (a), (b), (c) , (d), or (e) is to participate in the | 15 | | management or sales of lottery tickets or shares. | 16 | | However, with respect to persons defined in (a), the | 17 | | Department may grant any such person a license under this Act | 18 | | when: | 19 | | 1) at least 10 years have elapsed since the date when | 20 | | the sentence for the most recent such conviction was | 21 | | satisfactorily completed; | 22 | | 2) the applicant has no history of criminal activity | 23 | | subsequent to such conviction; | 24 | | 3) the applicant has complied with all conditions of | 25 | | probation, conditional discharge, supervision, parole or | 26 | | mandatory supervised release; and |
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| 1 | | 4) the applicant presents at least 3 letters of | 2 | | recommendation from responsible citizens in his community | 3 | | who personally can attest that the character and attitude | 4 | | of the applicant indicate that he is unlikely to commit | 5 | | another crime. | 6 | | The Department may revoke, without notice or a hearing, | 7 | | the license of any agent who violates this Act or any rule or | 8 | | regulation promulgated pursuant to this Act. However, if the | 9 | | Department does revoke a license without notice and an | 10 | | opportunity for a hearing, the Department shall, by | 11 | | appropriate notice, afford the person whose license has been | 12 | | revoked an opportunity for a hearing within 30 days after the | 13 | | revocation order has been issued. As a result of any such | 14 | | hearing, the Department may confirm its action in revoking the | 15 | | license, or it may order the restoration of such license. | 16 | | (Source: P.A. 97-464, eff. 10-15-11.) | 17 | | (20 ILCS 1605/10.6) (from Ch. 120, par. 1160.6) | 18 | | Sec. 10.6. The Department shall make an effort to more | 19 | | directly inform players of the odds of winning prizes by | 20 | | publishing the information for all games on the Department's | 21 | | public website . This effort shall include, at a minimum, that | 22 | | the Department require all ticket agents to display a placard | 23 | | stating the odds of winning for each game offered by that | 24 | | agent. | 25 | | (Source: P.A. 97-464, eff. 10-15-11.) |
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| 1 | | (20 ILCS 1605/19) (from Ch. 120, par. 1169) | 2 | | Sec. 19. The Department shall establish an appropriate | 3 | | period for the claiming of prizes for each lottery game | 4 | | offered. Each claim period shall be stated in game rules and | 5 | | written play instructions issued by the Director in accordance | 6 | | with Section 7.1 of this Act. Written play instructions shall | 7 | | be made available on the Department's public website or by the | 8 | | Department by request to all players through sales agents | 9 | | licensed to sell game tickets or shares . Prizes for lottery | 10 | | games which involve the purchase of a physical lottery ticket | 11 | | may be claimed only by presentation of a valid winning lottery | 12 | | ticket that matches validation records on file with the | 13 | | Lottery; no claim may be honored which is based on the | 14 | | assertion that the ticket was lost or stolen. No lottery | 15 | | ticket which has been altered, mutilated, or fails to pass | 16 | | validation tests shall be deemed to be a winning ticket. | 17 | | If no claim is made for the money within the established | 18 | | claim period, the prize may be included in the prize pool of | 19 | | such special drawing or drawings as the Department may, from | 20 | | time to time, designate. Unclaimed multi-state game prize | 21 | | money may be included in the multi-state prize pool for such | 22 | | special drawing or drawings as the multi-state game directors | 23 | | may, from time to time, designate. Any bonuses offered by the | 24 | | Department to sales agents who sell winning tickets or shares | 25 | | shall be payable to such agents regardless of whether or not |
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| 1 | | the prize money on the ticket or share is claimed, provided | 2 | | that the agent can be identified as the vendor of the winning | 3 | | ticket or share, and that the winning ticket or share was sold | 4 | | on or after January 1, 1984. All unclaimed prize money not | 5 | | included in the prize pool of a special drawing shall be | 6 | | transferred to the Common School Fund. | 7 | | (Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.) | 8 | | (20 ILCS 1605/20) (from Ch. 120, par. 1170) | 9 | | Sec. 20. State Lottery Fund. | 10 | | (a) There is created in the State Treasury a special fund | 11 | | to be known as the State Lottery Fund. Such fund shall consist | 12 | | of all revenues received from (1) the sale of lottery tickets | 13 | | or shares, (net of commissions, fees representing those | 14 | | expenses that are directly proportionate to the sale of | 15 | | tickets or shares at the agent location, and prizes of less | 16 | | than $600 or less which have been validly paid at the agent | 17 | | level), (2) application fees, and (3) all other sources | 18 | | including moneys credited or transferred thereto from any | 19 | | other fund or source pursuant to law. Interest earnings of the | 20 | | State Lottery Fund shall be credited to the Common School | 21 | | Fund. | 22 | | (a-5) The receipt and distribution of moneys under Section | 23 | | 21.4 of this Act shall be in accordance with Section 21.4. | 24 | | (b) The receipt and distribution of moneys under Section | 25 | | 21.5 of this Law shall be in accordance with Section 21.5. |
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| 1 | | (c) The receipt and distribution of moneys under Section | 2 | | 21.6 of this Law shall be in accordance with Section 21.6. | 3 | | (d) The receipt and distribution of moneys under Section | 4 | | 21.7 of this Law shall be in accordance with Section 21.7. | 5 | | (e) The receipt and distribution of moneys under Section | 6 | | 21.8 of this Law shall be in accordance with Section 21.8. | 7 | | (f) The receipt and distribution of moneys under Section | 8 | | 21.9 of this Law shall be in accordance with Section 21.9. | 9 | | (g) The receipt and distribution of moneys under Section | 10 | | 21.10 of this Law shall be in accordance with Section 21.10. | 11 | | (h) The receipt and distribution of moneys under Section | 12 | | 21.11 of this Law shall be in accordance with Section 21.11. | 13 | | (i) (Blank). | 14 | | (j) The receipt and distribution of moneys under Section | 15 | | 21.13 of this Law shall be in accordance with Section 21.13. | 16 | | (k) The receipt and distribution of moneys under Section | 17 | | 25-70 of the Sports Wagering Act shall be in accordance with | 18 | | Section 25-70 of the Sports Wagering Act. | 19 | | (l) The receipt and distribution of moneys under Section | 20 | | 21.15 of this Law shall be in accordance with Section 21.15. | 21 | | (m) The receipt and distribution of moneys under Section | 22 | | 21.16 of this Law shall be in accordance with Section 21.16. | 23 | | (Source: P.A. 102-16, eff. 6-17-21; 103-381, eff. 7-28-23.) | 24 | | (20 ILCS 1605/20.1) (from Ch. 120, par. 1170.1) | 25 | | Sec. 20.1. Department account. |
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| 1 | | (a) The Department is authorized to pay validated prizes | 2 | | up to $25,000 from funds held by the Department in an account | 3 | | separate and apart from all public moneys of the State. Moneys | 4 | | in this account shall be administered by the Director | 5 | | exclusively for the purposes of issuing payments to prize | 6 | | winners authorized by this Section. Moneys in this account | 7 | | shall be deposited by the Department into the Public | 8 | | Treasurers' Investment Pool established under Section 17 of | 9 | | the State Treasurer Act. The Department shall submit vouchers | 10 | | from time to time as needed for reimbursement of this account | 11 | | from moneys appropriated for prizes from the State Lottery | 12 | | Fund. Investment income earned from this account shall be | 13 | | deposited monthly by the Department into the Common School | 14 | | Fund. The Department shall file quarterly fiscal reports | 15 | | specifying the activity of this account as required under | 16 | | Section 16 of the State Comptroller Act, and shall file | 17 | | quarterly with the General Assembly, the Auditor General, the | 18 | | Comptroller, and the State Treasurer a report indicating the | 19 | | costs associated with this activity. | 20 | | (b) The Department is authorized to enter into an | 21 | | interagency agreement with the Office of the Comptroller or | 22 | | any other State agency to establish responsibilities, duties, | 23 | | and procedures for complying with the Comptroller's Offset | 24 | | System under Section 10.05 of the State Comptroller Act. All | 25 | | federal and State tax reporting and withholding requirements | 26 | | relating to prize winners under this Section shall be the |
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| 1 | | responsibility of the Department. Moneys from this account may | 2 | | not be used to pay amounts to deferred prize winners. Moneys | 3 | | may not be transferred from the State Lottery Fund to this | 4 | | account for payment of prizes under this Section until | 5 | | procedures are implemented to comply with the Comptroller's | 6 | | Offset System and sufficient internal controls are in place to | 7 | | validate prizes. | 8 | | (Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.) | 9 | | (20 ILCS 1605/24) (from Ch. 120, par. 1174) | 10 | | Sec. 24. The State Comptroller shall conduct a preaudit of | 11 | | all accounts and transactions of the Department in connection | 12 | | with the operation of the State Lottery under the State | 13 | | Comptroller Act, excluding payments issued by the Department | 14 | | for prizes of $25,000 or less . | 15 | | The Auditor General or a certified public accountant firm | 16 | | appointed by him shall conduct an annual post-audit of all | 17 | | accounts and transactions of the Department in connection with | 18 | | the operation of the State Lottery and other special post | 19 | | audits as the Auditor General, the Legislative Audit | 20 | | Commission, or the General Assembly deems necessary. The | 21 | | annual post-audits shall include payments made by lottery | 22 | | sales agents of prizes of less than $600 or less authorized | 23 | | under Section 20, and payments made by the Department of | 24 | | prizes up to $25,000 authorized under Section 20.1. The | 25 | | Auditor General or his agent conducting an audit under this |
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| 1 | | Act shall have access and authority to examine any and all | 2 | | records of the Department or the Board, its distributing | 3 | | agents and its licensees. | 4 | | (Source: P.A. 94-776, eff. 5-19-06.) | 5 | | (20 ILCS 1605/27) (from Ch. 120, par. 1177) | 6 | | Sec. 27. (a) The Department may State Treasurer may, with | 7 | | the consent of the Director, contract with any person or | 8 | | corporation, including, without limitation, a bank, banking | 9 | | house, trust company or investment banking firm, to perform | 10 | | such financial functions, activities or services in connection | 11 | | with operation of the lottery . The State Treasurer may, with | 12 | | the consent of the Director, act as an agent of the Department | 13 | | to perform the financial functions as the Director may | 14 | | prescribe as the State Treasurer and the Director may | 15 | | prescribe . | 16 | | (b) All proceeds from investments made pursuant to | 17 | | contracts executed by the Department or the State Treasurer, | 18 | | with the consent of the Director, to perform financial | 19 | | functions, activities or services in connection with operation | 20 | | of the lottery, shall be deposited and held by the State | 21 | | Treasurer as ex-officio custodian thereof, separate and apart | 22 | | from all public money or funds of this State in a special trust | 23 | | fund outside the State treasury. Such trust fund shall be | 24 | | known as the "Deferred Lottery Prize Winners Trust Fund", and | 25 | | shall be administered by the Director. |
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| 1 | | The Director shall, at such times and in such amounts as | 2 | | shall be necessary, prepare and send to the State Comptroller | 3 | | vouchers requesting payment from the Deferred Lottery Prize | 4 | | Winners Trust Fund to deferred prize winners, in a manner that | 5 | | will insure the timely payment of such amounts owed. | 6 | | This Act shall constitute an irrevocable appropriation of | 7 | | all amounts necessary for that purpose, and the irrevocable | 8 | | and continuing authority for and direction to the Director and | 9 | | the State Treasurer to make the necessary payments out of such | 10 | | trust fund for that purpose. | 11 | | (c) Moneys invested pursuant to subsection (a) of this | 12 | | Section may be invested only in bonds, notes, certificates of | 13 | | indebtedness, treasury bills, or other securities constituting | 14 | | direct obligations of the United States of America and all | 15 | | securities or obligations the prompt payment of principal and | 16 | | interest of which is guaranteed by a pledge of the full faith | 17 | | and credit of the United States of America. Interest earnings | 18 | | on moneys in the Deferred Lottery Prize Winners Trust Fund | 19 | | shall remain in such fund and be used to pay the winners of | 20 | | lottery prizes deferred as to payment until such obligations | 21 | | are discharged. Proceeds from bonds purchased and interest | 22 | | accumulated as a result of a grand prize multi-state game | 23 | | ticket that goes unclaimed will be transferred after the | 24 | | termination of the relevant claim period directly from the | 25 | | lottery's Deferred Lottery Prize Winners Trust Fund to each | 26 | | respective multi-state partner state according to its |
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| 1 | | contribution ratio. | 2 | | (c-5) If a deferred lottery prize is not claimed within | 3 | | the claim period established by game rule, then the securities | 4 | | or other instruments purchased to fund the prize shall be | 5 | | liquidated and the liquidated amount shall be transferred to | 6 | | the State Lottery Fund for disposition pursuant to Section 19 | 7 | | of this Act. | 8 | | (c-10) The Director may use a portion of the moneys in the | 9 | | Deferred Lottery Prize Winners Trust Fund to purchase bonds to | 10 | | pay a lifetime prize if the prize duration exceeds the length | 11 | | of available securities. If the winner of a lifetime prize | 12 | | exceeds his or her life expectancy as determined using | 13 | | actuarial assumptions and the securities or moneys set aside | 14 | | to pay the prize have been exhausted, moneys in the State | 15 | | Lottery Fund shall be used to make payments to the winner for | 16 | | the duration of the winner's life. | 17 | | (c-15) From time to time, the Director may request that | 18 | | the State Comptroller transfer any excess moneys in the | 19 | | Deferred Lottery Prize Winners Trust Fund to the State Lottery | 20 | | Fund. | 21 | | (d) This amendatory Act of 1985 shall be construed | 22 | | liberally to effect the purposes of the Illinois Lottery Law. | 23 | | (Source: P.A. 97-464, eff. 10-15-11; 98-463, eff. 8-16-13; | 24 | | 98-499, eff. 8-16-13.) |
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