Full Text of HB4346 99th General Assembly
HB4346 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB4346 Introduced , by Rep. Ed Sullivan SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Lottery Law. Makes the Internet pilot program, which allows the sale of lottery tickets over the Internet, a permanent program. Removes provisions concerning the Internet Lottery Study Committee. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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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 | | Section 7.12 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, 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) (Blank). There is created the Internet Lottery Study | 5 | | Committee as an advisory body within the Department. The | 6 | | Department shall conduct a study to determine the impact of the | 7 | | Internet pilot program on lottery licensees. The Department | 8 | | shall also determine the feasibility of the sale of stored | 9 | | value cards by lottery licensees as a non-exclusive option for | 10 | | use by individuals 18 years of age or older who purchase | 11 | | tickets for authorized lottery games in the Internet pilot | 12 | | program. For the purposes of this study, it is anticipated that | 13 | | the stored value cards will have, but need not be limited to, | 14 | | the following characteristics: (1) the cards will be available | 15 | | only to individuals 18 years of age and older; (2) the cards | 16 | | will be rechargeable, closed-loop cards that can only be loaded | 17 | | with cash; (3) the cards will have unique identifying numbers | 18 | | to be used for on-line play; (4) the cards will have on-line | 19 | | play 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 Director or his or | 2 | | her designee; the chief executive officer of the Lottery's | 3 | | private manager or his or her designee; a representative | 4 | | appointed by the Governor's Office; 2 representatives of the | 5 | | lottery licensee community appointed by the Director; one | 6 | | representative of a statewide association representing food | 7 | | retailers appointed by the Director; and one representative of | 8 | | a statewide association representing retail merchants | 9 | | appointed by the Director. | 10 | | Members of the Study Committee shall be appointed within 30 | 11 | | days after the effective date of this amendatory Act of the | 12 | | 97th General Assembly. No later than 6 months after the | 13 | | effective date of this amendatory Act of the 97th General | 14 | | Assembly, the Department shall provide to the members of the | 15 | | Study Committee the proposed findings and recommendations of | 16 | | the study in order to solicit input from the Study Committee. | 17 | | Within 30 calendar days thereafter, the Study Committee shall | 18 | | convene a meeting of the members to discuss the proposed | 19 | | findings and recommendations of the study. No later than 15 | 20 | | calendar days after meeting, the Study Committee shall submit | 21 | | to the Department any written changes, additions, or | 22 | | corrections the Study Committee wishes the Department to make | 23 | | to the study. The Department shall consider the propriety of | 24 | | and respond to each change, addition, or correction offered by | 25 | | the Study Committee in the study. The Department shall also set | 26 | | forth any such change, addition, or correction offered by |
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| 1 | | members of the Study Committee and the Department's responses | 2 | | thereto in the appendix to the study. No later than 15 calendar | 3 | | days after receiving the changes, additions, or corrections | 4 | | offered by the Study Committee, the Department shall deliver | 5 | | copies of the final study and appendices, if any, to the | 6 | | Governor, President of the Senate, Minority Leader of the | 7 | | Senate, Speaker of the House of Representatives, Minority | 8 | | Leader of the House of Representatives, and each of the members | 9 | | of the Study Committee. | 10 | | (Source: P.A. 97-464, eff. 10-15-11; 97-1121, eff. 8-27-12; | 11 | | 98-499, eff. 8-16-13.)
| 12 | | Section 99. Effective date. This Act takes effect upon | 13 | | becoming law.
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