Full Text of HB5229 103rd General Assembly
HB5229ham001 103RD GENERAL ASSEMBLY | Rep. Margaret Croke Filed: 4/16/2024 | | 10300HB5229ham001 | | LRB103 38855 AWJ 72429 a |
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| 1 | | AMENDMENT TO HOUSE BILL 5229
| 2 | | AMENDMENT NO. ______. Amend House Bill 5229 by replacing | 3 | | everything after the enacting clause with the following: | 4 | | "Section 5. The Illinois Lottery Law is amended by | 5 | | changing Sections 7.1, 9.1, 10.1, 10.6, 19, 20, 20.1, 24, and | 6 | | 27 as 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, |
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| 1 | | play instructions, directives, operations manuals, brochures, | 2 | | or other game publications issued by the Department that | 3 | | relate to a specific lottery game shall be maintained as a | 4 | | public record in the Department's principal office, and made | 5 | | available for public inspection and copying but shall be | 6 | | exempt from the rulemaking procedures of the Illinois | 7 | | Administrative Procedure Act. However, when such written | 8 | | materials contain any policy of general applicability, the | 9 | | Department shall formulate and adopt such policy as a rule in | 10 | | accordance with the provisions of the Illinois Administrative | 11 | | Procedure Act. In addition, the Department shall publish each | 12 | | January in the Illinois Register a list of all game-specific | 13 | | rules, play instructions, directives, operations manuals, | 14 | | brochures, or other game-specific publications issued by the | 15 | | Department during the previous year and instructions | 16 | | concerning how the public may obtain copies of these materials | 17 | | from the Department. | 18 | | (Source: P.A. 97-464, eff. 10-15-11.) | 19 | | (20 ILCS 1605/9.1) | 20 | | Sec. 9.1. Private manager and management agreement. | 21 | | (a) As used in this Section: | 22 | | "Offeror" means a person or group of persons that responds | 23 | | to a request for qualifications under this Section. | 24 | | "Request for qualifications" means all materials and | 25 | | documents prepared by the Department to solicit the following |
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| 1 | | from offerors: | 2 | | (1) Statements of qualifications. | 3 | | (2) Proposals to enter into a management agreement, | 4 | | including the identity of any prospective vendor or | 5 | | vendors that the offeror intends to initially engage to | 6 | | assist the offeror in performing its obligations under the | 7 | | management agreement. | 8 | | "Final offer" means the last proposal submitted by an | 9 | | offeror in response to the request for qualifications, | 10 | | including the identity of any prospective vendor or vendors | 11 | | that the offeror intends to initially engage to assist the | 12 | | offeror in performing its obligations under the management | 13 | | agreement. | 14 | | "Final offeror" means the offeror ultimately selected by | 15 | | the Governor to be the private manager for the Lottery under | 16 | | subsection (h) of this Section. | 17 | | (b) (Blank). By September 15, 2010, the Governor shall | 18 | | select a private manager for the total management of the | 19 | | Lottery with integrated functions, such as lottery game | 20 | | design, supply of goods and services, and advertising and as | 21 | | specified in this Section. | 22 | | (c) (Blank). Pursuant to the terms of this subsection, the | 23 | | Department shall endeavor to expeditiously terminate the | 24 | | existing contracts in support of the Lottery in effect on July | 25 | | 13, 2009 (the effective date of Public Act 96-37) in | 26 | | connection with the selection of the private manager. As part |
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| 1 | | of its obligation to terminate these contracts and select the | 2 | | private manager, the Department shall establish a mutually | 3 | | agreeable timetable to transfer the functions of existing | 4 | | contractors to the private manager so that existing Lottery | 5 | | operations are not materially diminished or impaired during | 6 | | the transition. To that end, the Department shall do the | 7 | | following: | 8 | | (1) where such contracts contain a provision | 9 | | authorizing termination upon notice, the Department shall | 10 | | provide notice of termination to occur upon the mutually | 11 | | agreed timetable for transfer of functions; | 12 | | (2) upon the expiration of any initial term or renewal | 13 | | term of the current Lottery contracts, the Department | 14 | | shall not renew such contract for a term extending beyond | 15 | | the mutually agreed timetable for transfer of functions; | 16 | | or | 17 | | (3) in the event any current contract provides for | 18 | | termination of that contract upon the implementation of a | 19 | | contract with the private manager, the Department shall | 20 | | perform all necessary actions to terminate the contract on | 21 | | the date that coincides with the mutually agreed timetable | 22 | | for transfer of functions. | 23 | | If the contracts to support the current operation of the | 24 | | Lottery in effect on July 13, 2009 (the effective date of | 25 | | Public Act 96-34) are not subject to termination as provided | 26 | | for in this subsection (c), then the Department may include a |
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| 1 | | provision in the contract with the private manager specifying | 2 | | a mutually agreeable methodology for incorporation. | 3 | | (c-5) The Department shall include provisions in the | 4 | | management agreement whereby the private manager shall, for a | 5 | | fee, and pursuant to a contract negotiated with the Department | 6 | | (the "Employee Use Contract"), utilize the services of current | 7 | | Department employees to assist in the administration and | 8 | | operation of the Lottery. The Department shall be the employer | 9 | | of all such bargaining unit employees assigned to perform such | 10 | | work for the private manager, and such employees shall be | 11 | | State employees, as defined by the Personnel Code. Department | 12 | | employees shall operate under the same employment policies, | 13 | | rules, regulations, and procedures, as other employees of the | 14 | | Department. In addition, neither historical representation | 15 | | rights under the Illinois Public Labor Relations Act, nor | 16 | | existing collective bargaining agreements, shall be disturbed | 17 | | by the management agreement with the private manager for the | 18 | | management of the Lottery. | 19 | | (d) The management agreement with the private manager | 20 | | shall include all of the following: | 21 | | (1) A term not to exceed 10 years, including any | 22 | | renewals. | 23 | | (2) A provision specifying that the Department: | 24 | | (A) shall exercise actual control over all | 25 | | significant business decisions; | 26 | | (A-5) has the authority to direct or countermand |
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| 1 | | operating decisions by the private manager at any | 2 | | time; | 3 | | (B) has ready access at any time to information | 4 | | regarding Lottery operations; | 5 | | (C) has the right to demand and receive | 6 | | information from the private manager concerning any | 7 | | aspect of the Lottery operations at any time; and | 8 | | (D) retains ownership of all trade names, | 9 | | trademarks, and intellectual property associated with | 10 | | the Lottery. | 11 | | (3) A provision imposing an affirmative duty on the | 12 | | private manager to provide the Department with material | 13 | | information and with any information the private manager | 14 | | reasonably believes the Department would want to know to | 15 | | enable the Department to conduct the Lottery. | 16 | | (4) A provision requiring the private manager to | 17 | | provide the Department with advance notice of any | 18 | | operating decision that bears significantly on the public | 19 | | interest, including, but not limited to, decisions on the | 20 | | kinds of games to be offered to the public and decisions | 21 | | affecting the relative risk and reward of the games being | 22 | | offered, so the Department has a reasonable opportunity to | 23 | | evaluate and countermand that decision. | 24 | | (5) A provision providing for compensation of the | 25 | | private manager that may consist of, among other things, a | 26 | | fee for services and a performance based bonus as |
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| 1 | | consideration for managing the Lottery, including terms | 2 | | that may provide the private manager with an increase in | 3 | | compensation if Lottery revenues grow by a specified | 4 | | percentage in a given year . | 5 | | (6) (Blank). | 6 | | (7) A provision requiring the deposit of all Lottery | 7 | | proceeds to be deposited into the State Lottery Fund | 8 | | except as otherwise provided in Section 20 of this Act. | 9 | | (8) A provision requiring the private manager to | 10 | | locate its principal office within the State. | 11 | | (8-5) A provision encouraging that , pursuant to | 12 | | Section 4 of the Business Enterprise for Minorities, | 13 | | Women, and Persons with Disabilities Act, at least 20% of | 14 | | the cost of contracts entered into for goods and services | 15 | | by the private manager in connection with its management | 16 | | of the Lottery, other than contracts with sales agents or | 17 | | technical advisors, be awarded to businesses that are a | 18 | | minority-owned business, a women-owned business, or a | 19 | | business owned by a person with disability, as those terms | 20 | | are defined in the Business Enterprise for Minorities, | 21 | | Women, and Persons with Disabilities Act. | 22 | | (9) A requirement that so long as the private manager | 23 | | complies with all the conditions of the agreement under | 24 | | the oversight of the Department, the private manager shall | 25 | | have the following duties and obligations with respect to | 26 | | the management of the Lottery: |
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| 1 | | (A) The right to use equipment and other assets | 2 | | used in the operation of the Lottery. | 3 | | (B) The rights and obligations under contracts | 4 | | with retailers and vendors. | 5 | | (C) The implementation of a comprehensive security | 6 | | program by the private manager. | 7 | | (D) The implementation of a comprehensive system | 8 | | of internal audits. | 9 | | (E) The implementation of a program by the private | 10 | | manager to curb compulsive gambling by persons playing | 11 | | the Lottery. | 12 | | (F) A system for determining (i) the type of | 13 | | Lottery games, (ii) the method of selecting winning | 14 | | tickets, (iii) the manner of payment of prizes to | 15 | | holders of winning tickets, (iv) the frequency of | 16 | | drawings of winning tickets, (v) the method to be used | 17 | | in selling tickets, (vi) a system for verifying the | 18 | | validity of tickets claimed to be winning tickets, | 19 | | (vii) the basis upon which retailer commissions are | 20 | | established by the manager, and (viii) minimum | 21 | | payouts. | 22 | | (10) A requirement that advertising and promotion must | 23 | | be consistent with Section 7.8a of this Act. | 24 | | (11) A requirement that the private manager market the | 25 | | Lottery to those residents who are new, infrequent, or | 26 | | lapsed players of the Lottery, especially those who are |
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| 1 | | most likely to make regular purchases on the Internet as | 2 | | permitted by law. | 3 | | (12) A code of ethics for the private manager's | 4 | | officers and employees. | 5 | | (13) A requirement that the Department monitor and | 6 | | oversee the private manager's practices and take action | 7 | | that the Department considers appropriate to ensure that | 8 | | the private manager is in compliance with the terms of the | 9 | | management agreement, while allowing the manager, unless | 10 | | specifically prohibited by law or the management | 11 | | agreement, to negotiate and sign its own contracts with | 12 | | vendors. | 13 | | (14) A provision requiring the private manager to | 14 | | periodically file, at least on an annual basis, | 15 | | appropriate financial statements in a form and manner | 16 | | acceptable to the Department. | 17 | | (15) Cash reserves requirements. | 18 | | (16) Procedural requirements for obtaining the prior | 19 | | approval of the Department when a management agreement or | 20 | | an interest in a management agreement is sold, assigned, | 21 | | transferred, or pledged as collateral to secure financing. | 22 | | (17) Grounds for the termination of the management | 23 | | agreement by the Department or the private manager. | 24 | | (18) Procedures for amendment of the agreement. | 25 | | (19) A provision requiring the private manager to | 26 | | engage in an open and competitive bidding process for any |
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| 1 | | procurement having a cost in excess of the small purchase | 2 | | limits under Section 20-20 of the Illinois Procurement | 3 | | Code $50,000 that is not a part of the private manager's | 4 | | final offer. The process shall favor the selection of a | 5 | | vendor deemed to have submitted a proposal that provides | 6 | | the Lottery with the best overall value. The process shall | 7 | | not be subject to the provisions of the Illinois | 8 | | Procurement Code, unless specifically required by the | 9 | | management agreement. | 10 | | (20) The transition of rights and obligations, | 11 | | including any associated equipment or other assets used in | 12 | | the operation of the Lottery, from the manager to any | 13 | | successor manager of the lottery, including the | 14 | | Department, following the termination of or foreclosure | 15 | | upon the management agreement. | 16 | | (21) Right of use of copyrights, trademarks, and | 17 | | service marks held by the Department in the name of the | 18 | | State. The agreement must provide that any use of them by | 19 | | the manager shall only be for the purpose of fulfilling | 20 | | its obligations under the management agreement during the | 21 | | term of the agreement. | 22 | | (22) The disclosure of any information requested by | 23 | | the Department to enable it to comply with the reporting | 24 | | requirements and information requests provided for under | 25 | | subsection (p) of this Section. | 26 | | (e) Notwithstanding any other law to the contrary, the |
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| 1 | | Department shall select a private manager through a | 2 | | competitive request for qualifications process consistent with | 3 | | Section 20-35 of the Illinois Procurement Code, which shall | 4 | | take into account: | 5 | | (1) the offeror's ability to market the Lottery to | 6 | | those residents who are new, infrequent, or lapsed players | 7 | | of the Lottery, especially those who are most likely to | 8 | | make regular purchases on the Internet; | 9 | | (2) the offeror's ability to address the State's | 10 | | concern with the social effects of gambling on those who | 11 | | can least afford to do so; | 12 | | (3) the offeror's ability to provide the most | 13 | | successful management of the Lottery for the benefit of | 14 | | the people of the State based on current and past business | 15 | | practices or plans of the offeror; and | 16 | | (4) the offeror's poor or inadequate past performance | 17 | | in servicing, equipping, operating or managing a lottery | 18 | | on behalf of Illinois, another State or foreign government | 19 | | and attracting persons who are not currently regular | 20 | | players of a lottery. | 21 | | (f) The Department may retain the services of an advisor | 22 | | or advisors with significant experience in financial services | 23 | | or the management, operation, and procurement of goods, | 24 | | services, and equipment for a government-run lottery to assist | 25 | | in the preparation of the terms of the request for | 26 | | qualifications and selection of the private manager. Any |
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| 1 | | prospective advisor seeking to provide services under this | 2 | | subsection (f) shall disclose any material business or | 3 | | financial relationship during the past 3 years with any | 4 | | potential offeror, or with a contractor or subcontractor | 5 | | presently providing goods, services, or equipment to the | 6 | | Department to support the Lottery. The Department shall | 7 | | evaluate the material business or financial relationship of | 8 | | each prospective advisor. The Department shall not select any | 9 | | prospective advisor with a substantial business or financial | 10 | | relationship that the Department deems to impair the | 11 | | objectivity of the services to be provided by the prospective | 12 | | advisor. During the course of the advisor's engagement by the | 13 | | Department, and for a period of one year thereafter, the | 14 | | advisor shall not enter into any business or financial | 15 | | relationship with any offeror or any vendor identified to | 16 | | assist an offeror in performing its obligations under the | 17 | | management agreement. Any advisor retained by the Department | 18 | | shall be disqualified from being an offeror. The Department | 19 | | shall not include terms in the request for qualifications that | 20 | | provide a material advantage whether directly or indirectly to | 21 | | any potential offeror, or any contractor or subcontractor | 22 | | presently providing goods, services, or equipment to the | 23 | | Department to support the Lottery, including terms contained | 24 | | in previous responses to requests for proposals or | 25 | | qualifications submitted to Illinois, another State or foreign | 26 | | government when those terms are uniquely associated with a |
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| 1 | | particular potential offeror, contractor, or subcontractor. | 2 | | The request for proposals offered by the Department on | 3 | | December 22, 2008 as "LOT08GAMESYS" and reference number | 4 | | "22016176" is declared void. | 5 | | (g) The Department shall select at least 2 offerors as | 6 | | finalists to potentially serve as the private manager no later | 7 | | than August 9, 2010. Upon making preliminary selections, the | 8 | | Department shall schedule a public hearing on the finalists' | 9 | | proposals and provide public notice of the hearing at least 7 | 10 | | calendar days before the hearing. The notice must include all | 11 | | of the following: | 12 | | (1) The date, time, and place of the hearing. | 13 | | (2) The subject matter of the hearing. | 14 | | (3) A brief description of the management agreement to | 15 | | be awarded. | 16 | | (4) The identity of the offerors that have been | 17 | | selected as finalists to serve as the private manager. | 18 | | (5) The address and telephone number of the | 19 | | Department. | 20 | | (h) At the public hearing, the Department shall (i) | 21 | | provide sufficient time for each finalist to present and | 22 | | explain its proposal to the Department and the Governor or the | 23 | | Governor's designee, including an opportunity to respond to | 24 | | questions posed by the Department, Governor, or designee and | 25 | | (ii) allow the public and non-selected offerors to comment on | 26 | | the presentations. The Governor or a designee shall attend the |
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| 1 | | public hearing. After the public hearing, the Department shall | 2 | | have 14 calendar days to recommend to the Governor whether a | 3 | | management agreement should be entered into with a particular | 4 | | finalist. After reviewing the Department's recommendation, the | 5 | | Governor may accept or reject the Department's recommendation, | 6 | | and shall select a final offeror as the private manager by | 7 | | publication of a notice in the Illinois Procurement Bulletin | 8 | | on or before September 15, 2010 . The Governor shall include in | 9 | | the notice a detailed explanation and the reasons why the | 10 | | final offeror is superior to other offerors and will provide | 11 | | management services in a manner that best achieves the | 12 | | objectives of this Section. The Governor shall also sign the | 13 | | management agreement with the private manager. | 14 | | (i) Any action to contest the private manager selected by | 15 | | the Governor under this Section must be brought within 7 | 16 | | calendar days after the publication of the notice of the | 17 | | designation of the private manager as provided in subsection | 18 | | (h) of this Section. | 19 | | (j) The Lottery shall remain, for so long as a private | 20 | | manager manages the Lottery in accordance with provisions of | 21 | | this Act, a Lottery conducted by the State, and the State shall | 22 | | not be authorized to sell or transfer the Lottery to a third | 23 | | party. | 24 | | (k) Any tangible personal property used exclusively in | 25 | | connection with the lottery that is owned by the Department | 26 | | and leased to the private manager shall be owned by the |
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| 1 | | Department in the name of the State and shall be considered to | 2 | | be public property devoted to an essential public and | 3 | | governmental function. | 4 | | (l) The Department may exercise any of its powers under | 5 | | this Section or any other law as necessary or desirable for the | 6 | | execution of the Department's powers under this Section. | 7 | | (m) Neither this Section nor any management agreement | 8 | | entered into under this Section prohibits the General Assembly | 9 | | from authorizing forms of gambling that are not in direct | 10 | | competition with the Lottery. The forms of gambling authorized | 11 | | by Public Act 101-31 constitute authorized forms of gambling | 12 | | that are not in direct competition with the Lottery. | 13 | | (n) The private manager shall be subject to a complete | 14 | | investigation in the third, seventh, and tenth years of the | 15 | | agreement (if the agreement is for a 10-year term) by the | 16 | | Department in cooperation with the Auditor General to | 17 | | determine whether the private manager has complied with this | 18 | | Section and the management agreement. The private manager | 19 | | shall bear the cost of an investigation or reinvestigation of | 20 | | the private manager under this subsection. | 21 | | (o) The powers conferred by this Section are in addition | 22 | | and supplemental to the powers conferred by any other law. If | 23 | | any other law or rule is inconsistent with this Section, | 24 | | including, but not limited to, provisions of the Illinois | 25 | | Procurement Code, then this Section controls as to any | 26 | | management agreement entered into under this Section. This |
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| 1 | | Section and any rules adopted under this Section contain full | 2 | | and complete authority for a management agreement between the | 3 | | Department and a private manager. No law, procedure, | 4 | | proceeding, publication, notice, consent, approval, order, or | 5 | | act by the Department or any other officer, Department, | 6 | | agency, or instrumentality of the State or any political | 7 | | subdivision is required for the Department to enter into a | 8 | | management agreement under this Section. This Section contains | 9 | | full and complete authority for the Department to approve any | 10 | | contracts entered into by a private manager with a vendor | 11 | | providing goods, services, or both goods and services to the | 12 | | private manager under the terms of the management agreement, | 13 | | including subcontractors of such vendors. | 14 | | Upon receipt of a written request from the Chief | 15 | | Procurement Officer, the Department shall provide to the Chief | 16 | | Procurement Officer a complete and un-redacted copy of the | 17 | | management agreement or any contract that is subject to the | 18 | | Department's approval authority under this subsection (o). The | 19 | | Department shall provide a copy of the agreement or contract | 20 | | to the Chief Procurement Officer in the time specified by the | 21 | | Chief Procurement Officer in his or her written request, but | 22 | | no later than 5 business days after the request is received by | 23 | | the Department. The Chief Procurement Officer must retain any | 24 | | portions of the management agreement or of any contract | 25 | | designated by the Department as confidential, proprietary, or | 26 | | trade secret information in complete confidence pursuant to |
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| 1 | | subsection (g) of Section 7 of the Freedom of Information Act. | 2 | | The Department shall also provide the Chief Procurement | 3 | | Officer with reasonable advance written notice of any contract | 4 | | that is pending Department approval. | 5 | | Notwithstanding any other provision of this Section to the | 6 | | contrary, the Chief Procurement Officer shall adopt | 7 | | administrative rules, including emergency rules, to establish | 8 | | a procurement process to select a successor private manager if | 9 | | a private management agreement has been terminated. The | 10 | | selection process shall at a minimum take into account the | 11 | | criteria set forth in items (1) through (4) of subsection (e) | 12 | | of this Section and may include provisions consistent with | 13 | | subsections (f), (g), (h), and (i) of this Section. The Chief | 14 | | Procurement Officer shall also implement and administer the | 15 | | adopted selection process upon the termination of a private | 16 | | management agreement. The Department, after the Chief | 17 | | Procurement Officer certifies that the procurement process has | 18 | | been followed in accordance with the rules adopted under this | 19 | | subsection (o), shall select a final offeror as the private | 20 | | manager and sign the management agreement with the private | 21 | | manager. | 22 | | Through June 30, 2022, except as provided in Sections | 23 | | 21.5, 21.6, 21.7, 21.8, 21.9, 21.10, 21.11, 21.12, and 21.13 | 24 | | of this Act and Section 25-70 of the Sports Wagering Act, the | 25 | | Department shall distribute all proceeds of lottery tickets | 26 | | and shares sold in the following priority and manner: |
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| 1 | | (1) The payment of prizes and retailer bonuses. | 2 | | (2) The payment of costs incurred in the operation and | 3 | | administration of the Lottery, including the payment of | 4 | | sums due to the private manager under the management | 5 | | agreement with the Department. | 6 | | (3) On the last day of each month or as soon thereafter | 7 | | as possible, the State Comptroller shall direct and the | 8 | | State Treasurer shall transfer from the State Lottery Fund | 9 | | to the Common School Fund an amount that is equal to the | 10 | | proceeds transferred in the corresponding month of fiscal | 11 | | year 2009, as adjusted for inflation, to the Common School | 12 | | Fund. | 13 | | (4) On or before September 30 of each fiscal year, | 14 | | deposit any estimated remaining proceeds from the prior | 15 | | fiscal year, subject to payments under items (1), (2), and | 16 | | (3), into the Capital Projects Fund. Beginning in fiscal | 17 | | year 2019, the amount deposited shall be increased or | 18 | | decreased each year by the amount the estimated payment | 19 | | differs from the amount determined from each year-end | 20 | | financial audit. Only remaining net deficits from prior | 21 | | fiscal years may reduce the requirement to deposit these | 22 | | funds, as determined by the annual financial audit. | 23 | | Beginning July 1, 2022, the Department shall distribute | 24 | | all proceeds of lottery tickets and shares sold in the manner | 25 | | and priority described in Section 9.3 of this Act, except that | 26 | | the Department shall make the deposit into the Capital |
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| 1 | | Projects Fund that would have occurred under item (4) of this | 2 | | subsection (o) on or before September 30, 2022, but for the | 3 | | changes made to this subsection by Public Act 102-699. | 4 | | (p) The Department shall be subject to the following | 5 | | reporting and information request requirements: | 6 | | (1) the Department shall submit written quarterly | 7 | | reports to the Governor and the General Assembly on the | 8 | | activities and actions of the private manager selected | 9 | | under this Section; | 10 | | (2) upon request of the Chief Procurement Officer, the | 11 | | Department shall promptly produce information related to | 12 | | the procurement activities of the Department and the | 13 | | private manager requested by the Chief Procurement | 14 | | Officer; the Chief Procurement Officer must retain | 15 | | confidential, proprietary, or trade secret information | 16 | | designated by the Department in complete confidence | 17 | | pursuant to subsection (g) of Section 7 of the Freedom of | 18 | | Information Act; and | 19 | | (3) at least 30 days prior to the beginning of the | 20 | | Department's fiscal year, the Department shall prepare an | 21 | | annual written report on the activities of the private | 22 | | manager selected under this Section and deliver that | 23 | | report to the Governor and General Assembly. | 24 | | (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19; | 25 | | 101-561, eff. 8-23-19; 102-558, eff. 8-20-21; 102-699, eff. | 26 | | 4-19-22; 102-1115, eff. 1-9-23.) |
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| 1 | | (20 ILCS 1605/10.1) (from Ch. 120, par. 1160.1) | 2 | | Sec. 10.1. The following are ineligible for any license | 3 | | under this Act: | 4 | | (a) any person who has been convicted of a felony; | 5 | | (b) any person who is or has been a professional | 6 | | gambler or gambling promoter; | 7 | | (c) any person who has engaged in bookmaking or other | 8 | | forms of illegal gambling; | 9 | | (d) any person who is not of good character and | 10 | | reputation in the community in which he resides; | 11 | | (e) any person who has been found guilty of any fraud | 12 | | or misrepresentation in any connection; | 13 | | (f) any firm or corporation in which a person defined | 14 | | in item (a), (b), (c), (d) , or (e) has a proprietary, | 15 | | equitable or credit interest of 5% or more. | 16 | | (g) any organization in which a person defined in item | 17 | | (a), (b), (c), (d) , or (e) is an officer, director, or | 18 | | managing agent, whether compensated or not; and | 19 | | (h) any organization in which a person defined in item | 20 | | (a), (b), (c) , (d), or (e) is to participate in the | 21 | | management or sales of lottery tickets or shares. | 22 | | However, with respect to persons defined in (a), the | 23 | | Department may grant any such person a license under this Act | 24 | | when: | 25 | | 1) at least 10 years have elapsed since the date when |
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| 1 | | the sentence for the most recent such conviction was | 2 | | satisfactorily completed; | 3 | | 2) the applicant has no history of criminal activity | 4 | | subsequent to such conviction; | 5 | | 3) the applicant has complied with all conditions of | 6 | | probation, conditional discharge, supervision, parole or | 7 | | mandatory supervised release; and | 8 | | 4) the applicant presents at least 3 letters of | 9 | | recommendation from responsible citizens in his community | 10 | | who personally can attest that the character and attitude | 11 | | of the applicant indicate that he is unlikely to commit | 12 | | another crime. | 13 | | The Department may revoke, without notice or a hearing, | 14 | | the license of any agent who violates this Act or any rule or | 15 | | regulation promulgated pursuant to this Act. However, if the | 16 | | Department does revoke a license without notice and an | 17 | | opportunity for a hearing, the Department shall, by | 18 | | appropriate notice, afford the person whose license has been | 19 | | revoked an opportunity for a hearing within 30 days after the | 20 | | revocation order has been issued. As a result of any such | 21 | | hearing, the Department may confirm its action in revoking the | 22 | | license, or it may order the restoration of such license. | 23 | | (Source: P.A. 97-464, eff. 10-15-11.) | 24 | | (20 ILCS 1605/10.6) (from Ch. 120, par. 1160.6) | 25 | | Sec. 10.6. The Department shall make an effort to more |
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| 1 | | directly inform players of the odds of winning prizes by | 2 | | publishing the information for all games on the Department's | 3 | | public website . This effort shall include, at a minimum, that | 4 | | the Department require all ticket agents to display a placard | 5 | | stating the odds of winning for each game offered by that | 6 | | agent. | 7 | | (Source: P.A. 97-464, eff. 10-15-11.) | 8 | | (20 ILCS 1605/19) (from Ch. 120, par. 1169) | 9 | | Sec. 19. The Department shall establish an appropriate | 10 | | period for the claiming of prizes for each lottery game | 11 | | offered. Each claim period shall be stated in game rules and | 12 | | written play instructions issued by the Director in accordance | 13 | | with Section 7.1 of this Act. Written play instructions shall | 14 | | be made available on the Department's public website or by the | 15 | | Department by request to all players through sales agents | 16 | | licensed to sell game tickets or shares . Prizes for lottery | 17 | | games which involve the purchase of a physical lottery ticket | 18 | | may be claimed only by presentation of a valid winning lottery | 19 | | ticket that matches validation records on file with the | 20 | | Lottery; no claim may be honored which is based on the | 21 | | assertion that the ticket was lost or stolen. No lottery | 22 | | ticket which has been altered, mutilated, or fails to pass | 23 | | validation tests shall be deemed to be a winning ticket. | 24 | | If no claim is made for the money within the established | 25 | | claim period, the prize may be included in the prize pool of |
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| 1 | | such special drawing or drawings as the Department may, from | 2 | | time to time, designate. Unclaimed multi-state game prize | 3 | | money may be included in the multi-state prize pool for such | 4 | | special drawing or drawings as the multi-state game directors | 5 | | may, from time to time, designate. Any bonuses offered by the | 6 | | Department to sales agents who sell winning tickets or shares | 7 | | shall be payable to such agents regardless of whether or not | 8 | | the prize money on the ticket or share is claimed, provided | 9 | | that the agent can be identified as the vendor of the winning | 10 | | ticket or share, and that the winning ticket or share was sold | 11 | | on or after January 1, 1984. All unclaimed prize money not | 12 | | included in the prize pool of a special drawing shall be | 13 | | transferred to the Common School Fund. | 14 | | (Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.) | 15 | | (20 ILCS 1605/20) (from Ch. 120, par. 1170) | 16 | | Sec. 20. State Lottery Fund. | 17 | | (a) There is created in the State Treasury a special fund | 18 | | to be known as the State Lottery Fund. Such fund shall consist | 19 | | of all revenues received from (1) the sale of lottery tickets | 20 | | or shares, (net of commissions, fees representing those | 21 | | expenses that are directly proportionate to the sale of | 22 | | tickets or shares at the agent location, and prizes of less | 23 | | than $600 or less which have been validly paid at the agent | 24 | | level), (2) application fees, and (3) all other sources | 25 | | including moneys credited or transferred thereto from any |
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| 1 | | other fund or source pursuant to law. Interest earnings of the | 2 | | State Lottery Fund shall be credited to the Common School | 3 | | Fund. | 4 | | (a-5) The receipt and distribution of moneys under Section | 5 | | 21.4 of this Act shall be in accordance with Section 21.4. | 6 | | (b) The receipt and distribution of moneys under Section | 7 | | 21.5 of this Law shall be in accordance with Section 21.5. | 8 | | (c) The receipt and distribution of moneys under Section | 9 | | 21.6 of this Law shall be in accordance with Section 21.6. | 10 | | (d) The receipt and distribution of moneys under Section | 11 | | 21.7 of this Law shall be in accordance with Section 21.7. | 12 | | (e) The receipt and distribution of moneys under Section | 13 | | 21.8 of this Law shall be in accordance with Section 21.8. | 14 | | (f) The receipt and distribution of moneys under Section | 15 | | 21.9 of this Law shall be in accordance with Section 21.9. | 16 | | (g) The receipt and distribution of moneys under Section | 17 | | 21.10 of this Law shall be in accordance with Section 21.10. | 18 | | (h) The receipt and distribution of moneys under Section | 19 | | 21.11 of this Law shall be in accordance with Section 21.11. | 20 | | (i) (Blank). | 21 | | (j) The receipt and distribution of moneys under Section | 22 | | 21.13 of this Law shall be in accordance with Section 21.13. | 23 | | (k) The receipt and distribution of moneys under Section | 24 | | 25-70 of the Sports Wagering Act shall be in accordance with | 25 | | Section 25-70 of the Sports Wagering Act. | 26 | | (l) The receipt and distribution of moneys under Section |
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| 1 | | 21.15 of this Law shall be in accordance with Section 21.15. | 2 | | (m) The receipt and distribution of moneys under Section | 3 | | 21.16 of this Law shall be in accordance with Section 21.16. | 4 | | (Source: P.A. 102-16, eff. 6-17-21; 103-381, eff. 7-28-23.) | 5 | | (20 ILCS 1605/20.1) (from Ch. 120, par. 1170.1) | 6 | | Sec. 20.1. Department account. | 7 | | (a) The Department is authorized to pay validated prizes | 8 | | up to $25,000 from funds held by the Department in an account | 9 | | separate and apart from all public moneys of the State. Moneys | 10 | | in this account shall be administered by the Director | 11 | | exclusively for the purposes of issuing payments to prize | 12 | | winners authorized by this Section. Moneys in this account | 13 | | shall be deposited by the Department into the Public | 14 | | Treasurers' Investment Pool established under Section 17 of | 15 | | the State Treasurer Act. The Department shall submit vouchers | 16 | | from time to time as needed for reimbursement of this account | 17 | | from moneys appropriated for prizes from the State Lottery | 18 | | Fund. Investment income earned from this account shall be | 19 | | deposited monthly by the Department into the Common School | 20 | | Fund. The Department shall file quarterly fiscal reports | 21 | | specifying the activity of this account as required under | 22 | | Section 16 of the State Comptroller Act, and shall file | 23 | | quarterly with the General Assembly, the Auditor General, the | 24 | | Comptroller, and the State Treasurer a report indicating the | 25 | | costs associated with this activity. |
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| 1 | | (b) The Department is authorized to enter into an | 2 | | interagency agreement with the Office of the Comptroller or | 3 | | any other State agency to establish responsibilities, duties, | 4 | | and procedures for complying with the Comptroller's Offset | 5 | | System under Section 10.05 of the State Comptroller Act. All | 6 | | federal and State tax reporting and withholding requirements | 7 | | relating to prize winners under this Section shall be the | 8 | | responsibility of the Department. Moneys from this account may | 9 | | not be used to pay amounts to deferred prize winners. Moneys | 10 | | may not be transferred from the State Lottery Fund to this | 11 | | account for payment of prizes under this Section until | 12 | | procedures are implemented to comply with the Comptroller's | 13 | | Offset System and sufficient internal controls are in place to | 14 | | validate prizes. | 15 | | (Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.) | 16 | | (20 ILCS 1605/24) (from Ch. 120, par. 1174) | 17 | | Sec. 24. The State Comptroller shall conduct a preaudit of | 18 | | all accounts and transactions of the Department in connection | 19 | | with the operation of the State Lottery under the State | 20 | | Comptroller Act, excluding payments issued by the Department | 21 | | for prizes of $25,000 or less . | 22 | | The Auditor General or a certified public accountant firm | 23 | | appointed by him shall conduct an annual post-audit of all | 24 | | accounts and transactions of the Department in connection with | 25 | | the operation of the State Lottery and other special post |
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| 1 | | audits as the Auditor General, the Legislative Audit | 2 | | Commission, or the General Assembly deems necessary. The | 3 | | annual post-audits shall include payments made by lottery | 4 | | sales agents of prizes of less than $600 or less authorized | 5 | | under Section 20, and payments made by the Department of | 6 | | prizes up to $25,000 authorized under Section 20.1. The | 7 | | Auditor General or his agent conducting an audit under this | 8 | | Act shall have access and authority to examine any and all | 9 | | records of the Department or the Board, its distributing | 10 | | agents and its licensees. | 11 | | (Source: P.A. 94-776, eff. 5-19-06.) | 12 | | (20 ILCS 1605/27) (from Ch. 120, par. 1177) | 13 | | Sec. 27. (a) The Department may State Treasurer may, with | 14 | | the consent of the Director, contract with any person or | 15 | | corporation, including, without limitation, a bank, banking | 16 | | house, trust company or investment banking firm, to perform | 17 | | such financial functions, activities or services in connection | 18 | | with operation of the lottery . The State Treasurer may, with | 19 | | the consent of the Director, act as an agent of the Department | 20 | | to perform the financial functions as the Director may | 21 | | prescribe as the State Treasurer and the Director may | 22 | | prescribe . | 23 | | (b) All proceeds from investments made pursuant to | 24 | | contracts executed by the Department or the State Treasurer, | 25 | | with the consent of the Director, to perform financial |
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| 1 | | functions, activities or services in connection with operation | 2 | | of the lottery, shall be deposited and held by the State | 3 | | Treasurer as ex-officio custodian thereof, separate and apart | 4 | | from all public money or funds of this State in a special trust | 5 | | fund outside the State treasury. Such trust fund shall be | 6 | | known as the "Deferred Lottery Prize Winners Trust Fund", and | 7 | | shall be administered by the Director. | 8 | | The Director shall, at such times and in such amounts as | 9 | | shall be necessary, prepare and send to the State Comptroller | 10 | | vouchers requesting payment from the Deferred Lottery Prize | 11 | | Winners Trust Fund to deferred prize winners, in a manner that | 12 | | will insure the timely payment of such amounts owed. | 13 | | This Act shall constitute an irrevocable appropriation of | 14 | | all amounts necessary for that purpose, and the irrevocable | 15 | | and continuing authority for and direction to the Director and | 16 | | the State Treasurer to make the necessary payments out of such | 17 | | trust fund for that purpose. | 18 | | (c) Moneys invested pursuant to subsection (a) of this | 19 | | Section may be invested only in bonds, notes, certificates of | 20 | | indebtedness, treasury bills, or other securities constituting | 21 | | direct obligations of the United States of America and all | 22 | | securities or obligations the prompt payment of principal and | 23 | | interest of which is guaranteed by a pledge of the full faith | 24 | | and credit of the United States of America. Interest earnings | 25 | | on moneys in the Deferred Lottery Prize Winners Trust Fund | 26 | | shall remain in such fund and be used to pay the winners of |
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| 1 | | lottery prizes deferred as to payment until such obligations | 2 | | are discharged. Proceeds from bonds purchased and interest | 3 | | accumulated as a result of a grand prize multi-state game | 4 | | ticket that goes unclaimed will be transferred after the | 5 | | termination of the relevant claim period directly from the | 6 | | lottery's Deferred Lottery Prize Winners Trust Fund to each | 7 | | respective multi-state partner state according to its | 8 | | contribution ratio. | 9 | | (c-5) If a deferred lottery prize is not claimed within | 10 | | the claim period established by game rule, then the securities | 11 | | or other instruments purchased to fund the prize shall be | 12 | | liquidated and the liquidated amount shall be transferred to | 13 | | the State Lottery Fund for disposition pursuant to Section 19 | 14 | | of this Act. | 15 | | (c-10) The Director may use a portion of the moneys in the | 16 | | Deferred Lottery Prize Winners Trust Fund to purchase bonds to | 17 | | pay a lifetime prize if the prize duration exceeds the length | 18 | | of available securities. If the winner of a lifetime prize | 19 | | exceeds his or her life expectancy as determined using | 20 | | actuarial assumptions and the securities or moneys set aside | 21 | | to pay the prize have been exhausted, moneys in the State | 22 | | Lottery Fund shall be used to make payments to the winner for | 23 | | the duration of the winner's life. | 24 | | (c-15) From time to time, the Director may request that | 25 | | the State Comptroller transfer any excess moneys in the | 26 | | Deferred Lottery Prize Winners Trust Fund to the State Lottery |
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| 1 | | Fund. | 2 | | (d) This amendatory Act of 1985 shall be construed | 3 | | liberally to effect the purposes of the Illinois Lottery Law. | 4 | | (Source: P.A. 97-464, eff. 10-15-11; 98-463, eff. 8-16-13; | 5 | | 98-499, eff. 8-16-13.)". |
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