Full Text of SB1654 096th General Assembly
SB1654 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 SB1654
Introduced 2/19/2009, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Lottery Law. Provides that the State may enter into a Management Agreement with a third party in which the third party is authorized to manage or operate the Lottery. Provides that the Department of Revenue shall create a pilot program that allows an individual to purchase Illinois lottery tickets or shares on the Internet without using a Lottery retailer with on-line status. Provides that only Lotto and Mega Million games offered by the Illinois Lottery may be offered through the program. Requires that, before beginning the pilot program, the Department of Revenue must seek a clarifying memo from the federal Department of Justice it is legal for Illinois residents and non-Illinois residents to purchase the private company to sell lottery tickets on the Internet on behalf of the State of Illinois under the federal Unlawful Internet Gambling Enforcement Act of 2006. Requires the Department to limit the individuals authorized to purchase the lottery tickets to individuals who are 18 years of age or older and Illinois residents, unless the clarifying memo from the federal Department of Justice indicates that it is legal for non-Illinois residents to purchase lottery tickets on the Internet. Contains provisions concerning verification of age and residency restrictions. Amends the Criminal Code of 1961. Provides that the exemption from conviction of gambling for lotteries when conducted by the State of Illinois in accordance with the Illinois Lottery Law includes any activity conducted by the Department of Revenue to sell lottery tickets pursuant to the provisions of the Illinois Lottery Law and its rules. Provides that persons who purchase lottery tickets through the Internet in connection with the Department of Revenue's pilot program shall not be convicted of gambling. Effective immediately.
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A BILL FOR
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SB1654 |
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| AN ACT concerning the lottery.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Lottery Law is amended by adding | 5 |
| Sections 2, 2.1, 7.12, 7.15, and 7.16 as follows:
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| (20 ILCS 1605/2) (from Ch. 120, par. 1152)
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| Sec. 2. This Act is enacted to implement and establish | 8 |
| within the State
a lottery to be conducted operated by the | 9 |
| State, through the Department, whether that lottery is operated | 10 |
| and managed by the State or by a third party pursuant to a | 11 |
| Management Agreement. The operations of a lottery are unique | 12 |
| activities for State government, and private management will | 13 |
| best enable the lottery to be operated in an entrepreneurial | 14 |
| and business-like manner, thereby maximizing value for and | 15 |
| benefit to the citizens of the State. Any such private manager | 16 |
| shall be accountable to the State through a comprehensive | 17 |
| system of State regulation and enduring operational oversight. | 18 |
| The State's ongoing conduct of the Lottery throughout the term | 19 |
| of the Management Agreement shall act to promote and ensure the | 20 |
| integrity, security, honesty, and fairness of the Lottery's | 21 |
| operation and administration. the entire net proceeds of which
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| are to be used for the support of the State's Common School | 23 |
| Fund,
except as provided in Sections 21.2, 21.5, 21.6, 21.7, |
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| and 21.8.
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| (Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05; | 3 |
| 95-331, eff. 8-21-07; 95-673, eff. 10-11-07; 95-674, eff. | 4 |
| 10-11-07; 95-876, eff. 8-21-08.)
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| (20 ILCS 1605/2.1 new) | 6 |
| Sec. 2.1. Sale of Lottery prohibited. Notwithstanding any | 7 |
| provision of this Act or other applicable law to the contrary, | 8 |
| the State may, pursuant to a competitive process, enter into a | 9 |
| Management Agreement with a third party pursuant to which that | 10 |
| party may be authorized to manage or operate the Lottery on | 11 |
| behalf of the State, and further pursuant to which that party | 12 |
| may receive certain Lottery revenues in consideration of the | 13 |
| operation of the Lottery, provided that the Lottery is managed | 14 |
| and operated in accordance with the provisions of this Act and | 15 |
| that the State at all times retains control of the Lottery and | 16 |
| exercises supervisory authority over the Lottery sufficient to | 17 |
| implement the terms of the Management Agreement and to effect | 18 |
| the purposes of this Act. The Lottery shall remain, for so long | 19 |
| as a private manager manages and operates the Lottery in | 20 |
| accordance with provisions of this Act, a Lottery conducted by | 21 |
| the State, and the State shall not be authorized to sell or | 22 |
| transfer the Lottery to a third party. | 23 |
| The Director is authorized to enter into a Management | 24 |
| Agreement on behalf of the State on such terms as the Director | 25 |
| shall determine, consistent with this amendatory Act of the |
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| 96th General Assembly. All of the acts of officials authorized | 2 |
| by the State that are in conformity with the intent and | 3 |
| purposes of this amendatory Act of the 96th General Assembly, | 4 |
| whether heretofore or hereafter taken or done, shall be and are | 5 |
| ratified, confirmed, authorized, and approved hereby in all | 6 |
| respects. To the extent any provision of the Illinois | 7 |
| Procurement Code or any other law is in conflict with this | 8 |
| amendatory Act of the 96th General Assembly insofar as it | 9 |
| relates to any Transaction Documents, the provisions of this | 10 |
| amendatory Act shall be controlling. | 11 |
| (20 ILCS 1605/7.12 new) | 12 |
| Sec. 7.12. Internet pilot program. The Department shall | 13 |
| create a pilot program that allows an individual to purchase | 14 |
| lottery tickets or shares on the Internet without using a | 15 |
| Lottery retailer with on-line status, as those terms are | 16 |
| defined by rule. The Department shall adopt rules necessary for | 17 |
| the administration of this program. The provisions of this Act | 18 |
| and the rules adopted under this Act shall apply to the sale of | 19 |
| lottery tickets or shares under this program. | 20 |
| Before beginning the pilot program, the Department of | 21 |
| Revenue must seek a clarifying memo from the federal Department | 22 |
| of Justice that it is legal for Illinois residents and | 23 |
| non-Illinois residents to purchase and the private company to | 24 |
| sell lottery tickets on the Internet on behalf of the State of | 25 |
| Illinois under the federal Unlawful Internet Gambling |
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| Enforcement Act of 2006. | 2 |
| The Department shall limit the individuals authorized to | 3 |
| purchase lottery tickets on the Internet to individuals who are | 4 |
| 18 years of age or older and Illinois residents, unless the | 5 |
| clarifying memo from the federal Department of Justice | 6 |
| indicates that it is legal for non-Illinois residents to | 7 |
| purchase lottery tickets on the Internet, and shall set a | 8 |
| limitation on the monthly purchases that may be made through | 9 |
| any one individual's lottery account. Only Lotto and Mega | 10 |
| Million games offered by the Illinois Lottery may be offered | 11 |
| through the pilot program. | 12 |
| The pilot program must be conducted pursuant to a contract | 13 |
| with a private vendor that has the expertise, technical | 14 |
| capability, and knowledge of the Illinois lottery marketplace | 15 |
| to conduct the program. The Department of the Lottery must | 16 |
| ensure cooperation from existing vendors for the program. | 17 |
| The pilot program shall last for not less than 36 months, | 18 |
| but not more than 48 months. | 19 |
| Results from the pilot program in terms of sales and | 20 |
| profits, as well as biannual reports as to market penetration | 21 |
| and controls, shall be used in any calculation of the lottery's | 22 |
| potential worth in the case of a lease or sale of the right to | 23 |
| operate the lottery. | 24 |
| (20 ILCS 1605/7.15 new)
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| Sec. 7.15. Verification of age and residency for Internet |
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| program; security for Internet lottery accounts. The | 2 |
| Department must establish a procedure to verify that an | 3 |
| individual is 18 years of age or older and an Illinois resident | 4 |
| before he or she may establish an Internet lottery account and | 5 |
| purchase lottery tickets or shares through the Internet | 6 |
| program. By rule, the Department shall establish funding | 7 |
| procedures for Internet lottery accounts and shall provide a | 8 |
| mechanism for each Internet lottery account to have a personal | 9 |
| identification number to prevent the unauthorized use of | 10 |
| Internet lottery accounts. | 11 |
| (20 ILCS 1605/7.16 new)
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| Sec. 7.16. Contracts. The contract with a private vendor | 13 |
| to fulfill the program requirements must be separate from | 14 |
| lottery contracts existing on the effective date of this | 15 |
| Section. | 16 |
| The Department shall award contracts for the development | 17 |
| and provision of technology and controls to ensure compliance | 18 |
| with the age and residency requirements for the purchase of | 19 |
| lottery tickets on the Internet pursuant to competitive bidding | 20 |
| processes. The technology and controls must include | 21 |
| appropriate data security standards to prevent unauthorized | 22 |
| access to Internet lottery accounts. | 23 |
| Section 10. The Criminal Code of 1961 is amended by | 24 |
| changing Section 28-1 as follows:
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| (720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
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| Sec. 28-1. Gambling.
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| (a) A person commits gambling when he:
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| (1) Plays a game of chance or skill for money or other | 5 |
| thing of
value, unless excepted in subsection (b) of this | 6 |
| Section; or
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| (2) Makes a wager upon the result of any game, contest, | 8 |
| or any
political nomination, appointment or election; or
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| (3) Operates, keeps, owns, uses, purchases, exhibits, | 10 |
| rents, sells,
bargains for the sale or lease of, | 11 |
| manufactures or distributes any
gambling device; or
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| (4) Contracts to have or give himself or another the | 13 |
| option to buy
or sell, or contracts to buy or sell, at a | 14 |
| future time, any grain or
other commodity whatsoever, or | 15 |
| any stock or security of any company,
where it is at the | 16 |
| time of making such contract intended by both parties
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| thereto that the contract to buy or sell, or the option, | 18 |
| whenever
exercised, or the contract resulting therefrom, | 19 |
| shall be settled, not by
the receipt or delivery of such | 20 |
| property, but by the payment only of
differences in prices | 21 |
| thereof; however, the issuance, purchase, sale,
exercise, | 22 |
| endorsement or guarantee, by or through a person registered
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| with the Secretary of State pursuant to Section 8 of the | 24 |
| Illinois
Securities Law of 1953, or by or through a person | 25 |
| exempt from such
registration under said Section 8, of a |
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| put, call, or other option to
buy or sell securities which | 2 |
| have been registered with the Secretary of
State or which | 3 |
| are exempt from such registration under Section 3 of the
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| Illinois Securities Law of 1953 is not gambling within the | 5 |
| meaning of
this paragraph (4); or
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| (5) Knowingly owns or possesses any book, instrument or | 7 |
| apparatus by
means of which bets or wagers have been, or | 8 |
| are, recorded or registered,
or knowingly possesses any | 9 |
| money which he has received in the course of
a bet or | 10 |
| wager; or
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| (6) Sells pools upon the result of any game or contest | 12 |
| of skill or
chance, political nomination, appointment or | 13 |
| election; or
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| (7) Sets up or promotes any lottery or sells, offers to | 15 |
| sell or
transfers any ticket or share for any lottery; or
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| (8) Sets up or promotes any policy game or sells, | 17 |
| offers to sell or
knowingly possesses or transfers any | 18 |
| policy ticket, slip, record,
document or other similar | 19 |
| device; or
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| (9) Knowingly drafts, prints or publishes any lottery | 21 |
| ticket or share,
or any policy ticket, slip, record, | 22 |
| document or similar device, except for
such activity | 23 |
| related to lotteries, bingo games and raffles authorized by
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| and conducted in accordance with the laws of Illinois or | 25 |
| any other state or
foreign government; or
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| (10) Knowingly advertises any lottery or policy game, |
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| except for such
activity related to lotteries, bingo games | 2 |
| and raffles authorized by and
conducted in accordance with | 3 |
| the laws of Illinois or any other state; or
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| (11) Knowingly transmits information as to wagers, | 5 |
| betting odds, or
changes in betting odds by telephone, | 6 |
| telegraph, radio, semaphore or
similar means; or knowingly | 7 |
| installs or maintains equipment for the
transmission or | 8 |
| receipt of such information; except that nothing in this
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| subdivision (11) prohibits transmission or receipt of such | 10 |
| information
for use in news reporting of sporting events or | 11 |
| contests; or
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| (12) Knowingly establishes, maintains, or operates an | 13 |
| Internet site that
permits a person to play a game of
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| chance or skill for money or other thing of value by means | 15 |
| of the Internet or
to make a wager upon the
result of any | 16 |
| game, contest, political nomination, appointment, or
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| election by means of the Internet. This item (12) does not | 18 |
| apply to activities referenced in items (6) and (6.1) of | 19 |
| subsection (b) of this Section.
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| (b) Participants in any of the following activities shall | 21 |
| not be
convicted of gambling therefor:
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| (1) Agreements to compensate for loss caused by the | 23 |
| happening of
chance including without limitation contracts | 24 |
| of indemnity or guaranty
and life or health or accident | 25 |
| insurance . ;
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| (2) Offers of prizes, award or compensation to the |
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| actual
contestants in any bona fide contest for the | 2 |
| determination of skill,
speed, strength or endurance or to | 3 |
| the owners of animals or vehicles
entered in such contest . ;
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| (3) Pari-mutuel betting as authorized by the law of | 5 |
| this State . ;
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| (4) Manufacture of gambling devices, including the | 7 |
| acquisition of
essential parts therefor and the assembly | 8 |
| thereof, for transportation in
interstate or foreign | 9 |
| commerce to any place outside this State when such
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| transportation is not prohibited by any applicable Federal | 11 |
| law . ;
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| (5) The game commonly known as "bingo", when conducted | 13 |
| in accordance
with the Bingo License and Tax Act . ;
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| (6) Lotteries when conducted by the State of Illinois | 15 |
| or a third party pursuant to a Management Agreement with | 16 |
| the State of Illinois in accordance
with the Illinois | 17 |
| Lottery Law . This exemption includes any activity | 18 |
| conducted by the Department of Revenue to sell lottery | 19 |
| tickets pursuant to the provisions of the Illinois Lottery | 20 |
| Law and its rules. ;
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| (6.1) The purchase of lottery tickets through the | 22 |
| Internet for a lottery conducted by the State of Illinois | 23 |
| under the program established in Section 7.12 of the | 24 |
| Illinois Lottery Law.
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| (7) Possession of an antique slot machine that is | 26 |
| neither used nor
intended to be used in the operation or |
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| promotion of any unlawful
gambling activity or enterprise. | 2 |
| For the purpose of this subparagraph
(b)(7), an antique | 3 |
| slot machine is one manufactured 25 years ago or earlier . ;
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| (8) Raffles when conducted in accordance with the | 5 |
| Raffles Act . ;
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| (9) Charitable games when conducted in accordance with | 7 |
| the Charitable
Games Act . ;
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| (10) Pull tabs and jar games when conducted under the | 9 |
| Illinois Pull
Tabs and Jar Games Act . ; or
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| (11) Gambling games conducted on riverboats when
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| authorized by the Riverboat Gambling Act.
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| (c) Sentence.
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| Gambling under subsection (a)(1) or (a)(2) of this Section | 14 |
| is a
Class A misdemeanor. Gambling under any of subsections | 15 |
| (a)(3) through
(a)(11) of this Section is a Class A | 16 |
| misdemeanor. A second or
subsequent conviction under any of | 17 |
| subsections (a)(3) through (a)(11),
is a Class 4 felony. | 18 |
| Gambling under subsection (a)(12) of this Section is a
Class A
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| misdemeanor. A second or subsequent conviction under | 20 |
| subsection (a)(12) is a
Class 4 felony.
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| (d) Circumstantial evidence.
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| In prosecutions under subsection (a)(1) through (a)(12) of
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| this
Section circumstantial evidence shall have the same | 24 |
| validity and weight as
in any criminal prosecution.
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| (Source: P.A. 91-257, eff. 1-1-00.)
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law. |
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INDEX
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Statutes amended in order of appearance
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| 20 ILCS 1605/2 |
from Ch. 120, par. 1152 |
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| 20 ILCS 1605/2.1 new |
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| 20 ILCS 1605/7.12 new |
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| 20 ILCS 1605/7.15 new |
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| 20 ILCS 1605/7.16 new |
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| 720 ILCS 5/28-1 |
from Ch. 38, par. 28-1 |
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