Full Text of SB3497 97th General Assembly
SB3497enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning the lottery.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 10. The Illinois Lottery Law is amended by changing | 5 | | Section 7.12 and adding Section 14.4 as follows: | 6 | | (20 ILCS 1605/7.12) | 7 | | Sec. 7.12. Internet pilot program. | 8 | | (a) The General Assembly finds that: | 9 | | (1) the consumer market in Illinois has changed since | 10 | | the creation of the Illinois State Lottery in 1974; | 11 | | (2) the Internet has become an integral part of | 12 | | everyday life for a significant number of Illinois | 13 | | residents not only in regards to their professional life, | 14 | | but also in regards to personal business and communication; | 15 | | and | 16 | | (3) the current practices of selling lottery tickets | 17 | | does not appeal to the new form of market participants who | 18 | | prefer to make purchases on the internet at their own | 19 | | convenience. | 20 | | It is the intent of the General Assembly to create an | 21 | | Internet pilot program for the sale of lottery tickets to | 22 | | capture this new form of market participant. | 23 | | (b) The Department shall create a pilot program that allows |
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| 1 | | an individual 18 years of age or older to purchase lottery | 2 | | tickets or shares on the Internet without using a Lottery | 3 | | retailer with on-line status, as those terms are defined by | 4 | | rule. The Department shall restrict the sale of lottery tickets | 5 | | on the Internet to transactions initiated and received or | 6 | | otherwise made exclusively within the State of Illinois. The | 7 | | Department shall adopt rules necessary for the administration | 8 | | of this program. These rules shall include , among other things, | 9 | | requirements for marketing of the Lottery to infrequent | 10 | | players , as well as limitations on the purchases that may be | 11 | | made through any one individual's lottery account . The | 12 | | provisions of this Act and the rules adopted under this Act | 13 | | shall apply to the sale of lottery tickets or shares under this | 14 | | program. | 15 | | Before beginning the pilot program, the Department of the | 16 | | Lottery must submit a request to the United States Department | 17 | | of Justice for review of the State's plan to implement a pilot | 18 | | program for the sale of lottery tickets on the Internet and its | 19 | | propriety under federal law. The Department shall implement the | 20 | | Internet pilot program only if the Department of Justice does | 21 | | not object to the implementation of the program within a | 22 | | reasonable period of time after its review. | 23 | | The Department is obligated to implement the pilot program | 24 | | set forth in this Section and Sections 7.15 and 7.16 only at | 25 | | such time, and to such extent, that the Department of Justice | 26 | | does not object to the implementation of the program within a |
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| 1 | | reasonable period of time after its review. While the Illinois | 2 | | Lottery may only offer Lotto , and Mega Millions , and Powerball | 3 | | games through the pilot program, the Department shall request | 4 | | review from the federal Department of Justice for the Illinois | 5 | | Lottery to sell lottery tickets on the Internet on behalf of | 6 | | the State of Illinois that are not limited to just these games. | 7 | | The Department shall authorize the private manager to | 8 | | implement and administer the program pursuant to the management | 9 | | agreement entered into under Section 9.1 and in a manner | 10 | | consistent with the provisions of this Section. If a private | 11 | | manager has not been selected pursuant to Section 9.1 at the | 12 | | time the Department is obligated to implement the pilot | 13 | | program, then the Department shall not proceed with the pilot | 14 | | program until after the selection of the private manager, at | 15 | | which time the Department shall authorize the private manager | 16 | | to implement and administer the program pursuant to the | 17 | | management agreement entered into under Section 9.1 and in a | 18 | | manner consistent with the provisions of this Section. | 19 | | The pilot program shall last for not less than 36 months, | 20 | | but not more than 48 months from the date of its initial | 21 | | operation. | 22 | | Nothing in this Section shall be construed as prohibiting | 23 | | the Department from implementing and operating a website portal | 24 | | whereby individuals who are 18 years of age or older with an | 25 | | Illinois mailing address may apply to purchase lottery tickets | 26 | | via subscription. Nothing in this Section shall also be |
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| 1 | | construed as prohibiting the sale of Lotto, Mega Millions, and | 2 | | Powerball games by a lottery licensee pursuant to the | 3 | | Department's rules. | 4 | | (c) There is created the Internet Lottery Study Committee | 5 | | as an advisory body within the Department. The Department shall | 6 | | conduct a study to determine the impact of the Internet pilot | 7 | | program on lottery licensees. The Department shall also | 8 | | determine the feasibility of the sale of stored value cards by | 9 | | lottery licensees as a non-exclusive option for use by | 10 | | individuals 18 years of age or older who purchase tickets for | 11 | | authorized lottery games in the Internet pilot program. For the | 12 | | purposes of this study, it is anticipated that the stored value | 13 | | cards will have, but need not be limited to, the following | 14 | | characteristics: (1) the cards will be available only to | 15 | | individuals 18 years of age and older; (2) the cards will be | 16 | | rechargeable, closed-loop cards that can only be loaded with | 17 | | cash; (3) the cards will have unique identifying numbers to be | 18 | | used for on-line play; (4) the cards will have on-line play | 19 | | subtracted from the card's value; (5) the cards may have | 20 | | on-line winnings added to them; (6) the cards will be used at | 21 | | Lottery retailers to cash out winnings of up to $600; and (7) | 22 | | the cards will meet all technological, programming, and | 23 | | security requirements mandated by the Department and the | 24 | | governing bodies of both Mega Millions and Powerball. | 25 | | To the fullest extent possible, but subject to available | 26 | | resources, the Department shall ensure that the study evaluates |
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| 1 | | and analyzes at least the following issues: | 2 | | (1) economic benefits to the State from Internet | 3 | | Lottery sales from stored value cards and from resulting | 4 | | sales taxes; | 5 | | (2) economic benefits to local governments from sales | 6 | | taxes generated from Internet Lottery sales through stored | 7 | | value cards; | 8 | | (3) economic benefits to Lottery retailers from | 9 | | Internet Lottery sales and from ancillary retail product | 10 | | sales in connection with the same; | 11 | | (4) enhanced player age verification from face-to-face | 12 | | interaction; | 13 | | (5) enhanced control of gambling addiction from | 14 | | face-to-face interaction; | 15 | | (6) elimination of credit card overspending through | 16 | | the use of stored value cards and resulting reduced debt | 17 | | issues; | 18 | | (7) the feasibility of the utilization of existing | 19 | | Lottery machines to dispense stored value cards; | 20 | | (8) the technological, programming, and security | 21 | | requirements to make stored value cards an appropriate | 22 | | sales alternative; and | 23 | | (9) the cost and project time estimates for | 24 | | implementation, including adaptation of existing Lottery | 25 | | machines, programming, and technology enhancements and | 26 | | impact to operations. |
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| 1 | | The Study Committee shall consist of the Superintendent or | 2 | | his or her designee; the chief executive officer of the | 3 | | Lottery's private manager or his or her designee; a | 4 | | representative appointed by the Governor's Office; 2 | 5 | | representatives of the lottery licensee community appointed by | 6 | | the Superintendent; one representative of a statewide | 7 | | association representing food retailers appointed by the | 8 | | Superintendent; and one representative of a statewide | 9 | | association representing retail merchants appointed by the | 10 | | Superintendent. | 11 | | Members of the Study Committee shall be appointed within 30 | 12 | | days after the effective date of this amendatory Act of the | 13 | | 97th General Assembly. No later than 6 months after the | 14 | | effective date of this amendatory Act of the 97th General | 15 | | Assembly, the Department shall provide to the members of the | 16 | | Study Committee the proposed findings and recommendations of | 17 | | the study in order to solicit input from the Study Committee. | 18 | | Within 30 calendar days thereafter, the Study Committee shall | 19 | | convene a meeting of the members to discuss the proposed | 20 | | findings and recommendations of the study. No later than 15 | 21 | | calendar days after meeting, the Study Committee shall submit | 22 | | to the Department any written changes, additions, or | 23 | | corrections the Study Committee wishes the Department to make | 24 | | to the study. The Department shall consider the propriety of | 25 | | and respond to each change, addition, or correction offered by | 26 | | the Study Committee in the study. The Department shall also set |
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| 1 | | forth any such change, addition, or correction offered by | 2 | | members of the Study Committee and the Department's responses | 3 | | thereto in the appendix to the study. No later than 15 calendar | 4 | | days after receiving the changes, additions, or corrections | 5 | | offered by the Study Committee, the Department shall deliver | 6 | | copies of the final study and appendices, if any, to the | 7 | | Governor, President of the Senate, Minority Leader of the | 8 | | Senate, Speaker of the House of Representatives, Minority | 9 | | Leader of the House of Representatives, and each of the members | 10 | | of the Study Committee. | 11 | | (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840, | 12 | | eff. 12-23-09; 97-464, eff. 10-15-11.) | 13 | | (20 ILCS 1605/14.4 new) | 14 | | Sec. 14.4. Investigators. | 15 | | (a) The Department has the power to appoint investigators | 16 | | to conduct investigations, searches, seizures, arrests, and | 17 | | other duties required to enforce the provisions of this Act and | 18 | | prevent the perpetration of fraud upon the Department or the | 19 | | public. These investigators have and may exercise all the | 20 | | powers of peace officers solely for the purpose of ensuring the | 21 | | integrity of the lottery games operated by the Department. | 22 | | (b) The Superintendent must authorize to each investigator | 23 | | employed under this
Section and
to any other employee of the | 24 | | Department exercising the powers of a peace
officer a
distinct | 25 | | badge that, on its face, (i) clearly states that the badge is
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| 1 | | authorized
by the
Department and (ii)
contains a unique | 2 | | identifying number.
No other badge shall be authorized by
the | 3 | | Department.
| 4 | | Section 99. Effective date. This Act takes effect upon | 5 | | becoming law.
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