Full Text of HB4992 96th General Assembly
HB4992 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB4992
Introduced 1/21/2010, by Rep. LaShawn K. Ford SYNOPSIS AS INTRODUCED: |
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20 ILCS 1605/2 |
from Ch. 120, par. 1152 |
20 ILCS 1605/7.2 |
from Ch. 120, par. 1157.2 |
20 ILCS 1605/9 |
from Ch. 120, par. 1159 |
20 ILCS 1605/9.1 |
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20 ILCS 1605/19 |
from Ch. 120, par. 1169 |
20 ILCS 1605/20 |
from Ch. 120, par. 1170 |
20 ILCS 1605/20.1 |
from Ch. 120, par. 1170.1 |
20 ILCS 1605/20.2 new |
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105 ILCS 5/2-3.153 new |
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Amends the Illinois Lottery Law. Creates the Lottery Supports Schools Fund. Provides that certain lottery proceeds that are deposited into the Common School Fund shall be deposited into the Lottery Supports Schools Fund. Provides that moneys in the Lottery Supports Schools Fund shall be distributed to school districts based on the district's percentage of lottery sales. Provides that the Act takes effect when the State Board of Education certifies to the Secretary of State and the Illinois Department of Revenue that the amount by which the amendatory Act reduces the amounts otherwise available for distribution under the general State aid formula has been replaced by other revenue sources.
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FISCAL NOTE ACT MAY APPLY | |
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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A BILL FOR
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HB4992 |
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LRB096 16708 HLH 31996 b |
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| AN ACT concerning State government.
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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 changing | 5 |
| Sections 2, 7.2, 9, 9.1, 19, 20, and 20.1 and by adding Section | 6 |
| 20.2 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 | 9 |
| within the State
a lottery to be conducted by the State through | 10 |
| the Department. The entire net proceeds of the Lottery
are to | 11 |
| be used for the support of the State's Lottery Supports Schools | 12 |
| Fund Common School Fund ,
except as provided in subsection (o) | 13 |
| of Section 9.1 and Sections 21.2, 21.5, 21.6, 21.7, and 21.8. | 14 |
| The General Assembly finds that it is in the public interest | 15 |
| for the Department to conduct the functions of the Lottery with | 16 |
| the assistance of a private manager under a management | 17 |
| agreement overseen by the Department. The Department shall be | 18 |
| accountable to the General Assembly and the people of the State | 19 |
| through a comprehensive system of regulation, audits, reports, | 20 |
| and enduring operational oversight. The Department's ongoing | 21 |
| conduct of the Lottery through a management agreement with a | 22 |
| private manager shall act to promote and ensure the integrity, | 23 |
| security, honesty, and fairness of the Lottery's operation and |
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| administration. It is the intent of the General Assembly that | 2 |
| the Department shall conduct the Lottery with the assistance of | 3 |
| a private manager under a management agreement at all times in | 4 |
| a manner consistent with 18 U.S.C. 1307(a)(1), 1307(b)(1), | 5 |
| 1953(b)(4).
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| (Source: P.A. 95-331, eff. 8-21-07; 95-673, eff. 10-11-07; | 7 |
| 95-674, eff. 10-11-07; 95-876, eff. 8-21-08; 96-34, eff. | 8 |
| 7-13-09.)
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| (20 ILCS 1605/7.2) (from Ch. 120, par. 1157.2)
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| Sec. 7.2. The rules and regulations of the Department may | 11 |
| include, but
shall not be limited to, the following:
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| (1) The types of lotteries to be conducted;
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| (2) The price, or prices, of tickets or shares in the | 14 |
| lottery;
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| (3) The numbers and sizes of the prizes on the winning | 16 |
| tickets or
shares;
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| (4) The manner of selecting the winning tickets or shares;
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| (5) The manner of payment of prizes to the holders of | 19 |
| winning
tickets or shares;
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| (6) The frequency of the drawing or selections of winning | 21 |
| tickets or
shares, without limitation;
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| (7) Without limit to number, the type or types of locations | 23 |
| at which
tickets or shares may be sold;
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| (8) The method to be used in selling tickets or shares;
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| (9) The manner and amount of compensation, if any, to be |
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| paid
licensed sales agents necessary to provide for the | 2 |
| adequate availability
of tickets or shares to prospective | 3 |
| buyers and for the convenience of
the public;
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| (10) The apportionment of the total revenues accruing from | 5 |
| the sale
of lottery tickets or shares and from all other | 6 |
| sources among (i) the
payment of prizes to the holders of | 7 |
| winning tickets or shares, (ii) the
payment of costs incurred | 8 |
| in the operation and administration of the
lottery, including | 9 |
| the expenses of the Department and the costs resulting
from any | 10 |
| contract or contracts entered into for promotional, | 11 |
| advertising
or operational services or for the purchase or | 12 |
| lease of lottery
equipment and materials, and (iii) for monthly | 13 |
| transfers to the Lottery Supports Schools Fund Common
School | 14 |
| Fund . The net revenues accruing from the sale of lottery | 15 |
| tickets
shall be determined by deducting from total revenues | 16 |
| the payments required
by paragraphs (i) and (ii) of this
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| subsection.
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| (11) Such other matters necessary or desirable for the | 19 |
| efficient and
economical operation and administration of the | 20 |
| lottery and for the
convenience of the purchasers of tickets or | 21 |
| shares and the holders of
winning tickets or shares.
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| Any rules and regulations of the Department with respect to
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| monthly transfers
to the Lottery Supports Schools Fund Common | 24 |
| School Fund are subject to Section 21.2.
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| (Source: P.A. 84-1128.)
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| (20 ILCS 1605/9) (from Ch. 120, par. 1159)
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| Sec. 9. The Superintendent, as administrative head of
the | 3 |
| Division, shall direct and supervise all its administrative and
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| technical activities and shall report to the Director. In | 5 |
| addition to the duties imposed upon him
elsewhere in this Act, | 6 |
| it
shall be the Superintendent's duty:
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| a. To supervise and administer the operation of the lottery | 8 |
| in
accordance with the provisions of this Act or such
rules and | 9 |
| regulations of the Department
adopted thereunder.
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| b. To attend meetings of the Board or to appoint a designee | 11 |
| to
attend in his stead.
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| c. To employ and direct such personnel in accord with the | 13 |
| Personnel Code,
as may be necessary to carry out the purposes | 14 |
| of this Act. The Superintendent may, subject to the approval of | 15 |
| the Director, use the services, personnel, or facilities of the | 16 |
| Department.
In addition, the Superintendent
may by agreement | 17 |
| secure such services as he or she may deem necessary
from any | 18 |
| other department, agency, or unit of the State government, and
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| may employ and compensate such consultants and technical | 20 |
| assistants as may
be required and is otherwise permitted by | 21 |
| law.
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| d. To license, in accordance with the provisions of | 23 |
| Sections 10 and 10.1
of this Act and the rules and regulations | 24 |
| of the Department
adopted thereunder,
as agents to sell lottery | 25 |
| tickets such persons as in his opinion will best
serve the | 26 |
| public convenience and promote the sale of tickets or shares.
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| The Superintendent may require a bond from every licensed | 2 |
| agent, in such
amount as provided in the rules and regulations | 3 |
| of the Department. Every licensed
agent shall prominently | 4 |
| display his license, or a copy thereof, as provided
in the | 5 |
| rules and regulations of the Department.
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| e. To suspend or revoke any license issued pursuant to this | 7 |
| Act or the
rules and regulations promulgated by the Department | 8 |
| thereunder.
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| f. To confer regularly as necessary or desirable and not
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| less than once
every month with the Lottery Control Board on | 11 |
| the operation and administration
of the Lottery; to make | 12 |
| available for inspection by the Board or any member
of the | 13 |
| Board, upon request, all books, records, files, and other | 14 |
| information
and documents of his office; to advise the Board | 15 |
| and recommend such rules
and regulations and such other matters | 16 |
| as he deems necessary and advisable
to improve the operation | 17 |
| and administration of the lottery.
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| g. To enter into contracts for the operation of the | 19 |
| lottery, or any part
thereof, and into contracts for the | 20 |
| promotion of the lottery on behalf of
the Department with any | 21 |
| person, firm or corporation, to perform any of the
functions | 22 |
| provided for in this Act or the rules and regulations | 23 |
| promulgated
thereunder. The Department shall not expend State | 24 |
| funds on a contractual
basis for such functions unless those | 25 |
| functions and expenditures are expressly
authorized by the | 26 |
| General Assembly.
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| h. To enter into an agreement or agreements with the | 2 |
| management of state
lotteries operated pursuant to the laws of | 3 |
| other states for the purpose of
creating and operating a | 4 |
| multi-state lottery game wherein a separate and
distinct prize | 5 |
| pool would be combined to award larger prizes to the public
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| than could be offered by the several state lotteries, | 7 |
| individually. No
tickets or shares offered in connection with a | 8 |
| multi-state lottery game
shall be sold within the State of | 9 |
| Illinois, except those offered by and
through the Department. | 10 |
| No such agreement shall purport to pledge the full
faith and | 11 |
| credit of the State of Illinois, nor shall the Department | 12 |
| expend
State funds on a contractual basis in connection with | 13 |
| any such game unless
such expenditures are expressly authorized | 14 |
| by the General Assembly,
provided, however, that in the event | 15 |
| of error or omission by the Illinois
State Lottery in the | 16 |
| conduct of the game, as determined by the multi-state
game | 17 |
| directors, the Department shall be authorized to pay a prize | 18 |
| winner or
winners the lesser of a disputed prize or $1,000,000, | 19 |
| any such payment to
be made solely from funds appropriated for | 20 |
| game prize purposes. The
Department shall be authorized to | 21 |
| share in the ordinary operating expenses
of any such | 22 |
| multi-state lottery game, from funds appropriated by the | 23 |
| General Assembly,
and in the event the multi-state game control | 24 |
| offices are physically
located within the State of Illinois, | 25 |
| the Department is authorized to
advance start-up operating | 26 |
| costs not to exceed $150,000, subject to
proportionate |
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| reimbursement of such costs by the other participating state
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| lotteries. The Department shall be authorized to share | 3 |
| proportionately in
the costs of establishing a liability | 4 |
| reserve fund from funds appropriated
by the General Assembly. | 5 |
| The Department is authorized to transfer prize
award funds | 6 |
| attributable to Illinois sales of multi-state lottery game | 7 |
| tickets to
the multi-state control office, or its designated | 8 |
| depository, for deposit
to such game pool account or accounts | 9 |
| as may be established by the
multi-state game directors, the | 10 |
| records of which account or accounts shall
be available at all | 11 |
| times for inspection in an audit by the Auditor General
of | 12 |
| Illinois and any other auditors pursuant to the laws of the | 13 |
| State of
Illinois.
No multi-state game prize awarded to a | 14 |
| nonresident of Illinois, with
respect to a ticket or share | 15 |
| purchased in a state other than the State of
Illinois, shall be | 16 |
| deemed to be a prize awarded under this Act for the
purpose of | 17 |
| taxation under the Illinois Income Tax Act.
All of the net | 18 |
| revenues accruing from the sale of multi-state lottery
tickets | 19 |
| or shares shall be transferred into the Lottery Supports | 20 |
| Schools Fund pursuant
to Section 7.2. The Department shall | 21 |
| promulgate such rules as may be appropriate to
implement the | 22 |
| provisions of this Section.
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| i. To make a continuous study and investigation of (1) the | 24 |
| operation and
the administration of similar laws which may be | 25 |
| in effect in other states
or countries, (2) any literature on | 26 |
| the subject which from time to time
may be published or |
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| available, (3) any Federal laws which may affect the
operation | 2 |
| of the
lottery, and (4) the reaction of Illinois citizens to | 3 |
| existing and potential
features of the lottery with a view to | 4 |
| recommending or effecting changes
that will tend to serve the | 5 |
| purposes of this Act.
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| j. To report monthly to the State Treasurer and the Lottery | 7 |
| Control Board
a full and complete statement of lottery | 8 |
| revenues, prize disbursements and
other expenses for each month | 9 |
| and the amounts to be transferred to the Common
School Fund | 10 |
| pursuant to Section 7.2 or such other funds as are otherwise
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| authorized by Section 21.2 of this Act, and to
make an annual | 12 |
| report, which shall include a full and complete statement
of | 13 |
| lottery revenues, prize disbursements and other expenses, to | 14 |
| the Governor
and the Board. All reports required by this | 15 |
| subsection shall be public
and copies of all
such reports shall | 16 |
| be sent to the Speaker of the House, the President of
the | 17 |
| Senate, and the minority leaders of both houses.
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| (Source: P.A. 96-37, eff. 7-13-09.)
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| (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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| 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 vendors | 5 |
| that the offeror intends to initially engage to assist the | 6 |
| offeror in performing its obligations under the management | 7 |
| 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) By September 15, 2010, the Governor shall select a | 18 |
| private manager for the total management of the Lottery with | 19 |
| integrated functions, such as lottery game design, supply of | 20 |
| goods and services, and advertising and as specified in this | 21 |
| Section. | 22 |
| (c) 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 the | 25 |
| effective date of this amendatory Act of the 96th General | 26 |
| Assembly in connection with the selection of the private |
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| manager. As part of its obligation to terminate these contracts | 2 |
| and select the private manager, the Department shall establish | 3 |
| a mutually agreeable timetable to transfer the functions of | 4 |
| existing contractors to the private manager so that existing | 5 |
| Lottery operations are not materially diminished or impaired | 6 |
| during 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 shall | 14 |
| not renew such contract for a term extending beyond the | 15 |
| mutually agreed timetable for transfer of functions; or | 16 |
| (3) in the event any current contract provides for | 17 |
| termination of that contract upon the implementation of a | 18 |
| contract with the private manager, the Department shall | 19 |
| perform all necessary actions to terminate the contract on | 20 |
| the date that coincides with the mutually agreed timetable | 21 |
| for transfer of functions. | 22 |
| If the contracts to support the current operation of the | 23 |
| Lottery in effect on the effective date of this amendatory Act | 24 |
| of the 96th General Assembly are not subject to termination as | 25 |
| provided for in this subsection (c), then the Department may | 26 |
| include a provision in the contract with the private manager |
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| specifying a mutually agreeable methodology for incorporation. | 2 |
| (c-5) The Department shall include provisions in the | 3 |
| management agreement whereby the private manager shall, for a | 4 |
| fee, and pursuant to a contract negotiated with the Department | 5 |
| (the "Employee Use Contract"), utilize the services of current | 6 |
| Department employees to assist in the administration and | 7 |
| operation of the Lottery. The Department shall be the employer | 8 |
| of all such bargaining unit employees assigned to perform such | 9 |
| work for the private manager, and such employees shall be State | 10 |
| employees, as defined by the Personnel Code. Department | 11 |
| employees shall operate under the same employment policies, | 12 |
| rules, regulations, and procedures, as other employees of the | 13 |
| Department. In addition, neither historical representation | 14 |
| rights under the Illinois Public Labor Relations Act, nor | 15 |
| existing collective bargaining agreements, shall be disturbed | 16 |
| by the management agreement with the private manager for the | 17 |
| management of the Lottery. | 18 |
| (d) The management agreement with the private manager shall | 19 |
| include all of the following: | 20 |
| (1) A term not to exceed 10 years, including any | 21 |
| renewals. | 22 |
| (2) A provision specifying that the Department: | 23 |
| (A) shall exercise actual control over all | 24 |
| significant business decisions; | 25 |
| (A-5) has the authority to direct or countermand | 26 |
| operating decisions by the private manager at any time; |
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| (B) has ready access at any time to information | 2 |
| regarding Lottery operations; | 3 |
| (C) has the right to demand and receive information | 4 |
| from the private manager concerning any aspect of the | 5 |
| Lottery operations at any time; and | 6 |
| (D) retains ownership of all trade names, | 7 |
| trademarks, and intellectual property associated with | 8 |
| the Lottery. | 9 |
| (3) A provision imposing an affirmative duty on the | 10 |
| private manager to provide the Department with material | 11 |
| information and with any information the private manager | 12 |
| reasonably believes the Department would want to know to | 13 |
| enable the Department to conduct the Lottery. | 14 |
| (4) A provision requiring the private manager to | 15 |
| provide the Department with advance notice of any operating | 16 |
| decision that bears significantly on the public interest, | 17 |
| including, but not limited to, decisions on the kinds of | 18 |
| games to be offered to the public and decisions affecting | 19 |
| the relative risk and reward of the games being offered, so | 20 |
| the Department has a reasonable opportunity to evaluate and | 21 |
| countermand that decision. | 22 |
| (5) A provision providing for compensation of the | 23 |
| private manager that may consist of, among other things, a | 24 |
| fee for services and a performance based bonus as | 25 |
| consideration for managing the Lottery, including terms | 26 |
| that may provide the private manager with an increase in |
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| compensation if Lottery revenues grow by a specified | 2 |
| percentage in a given year. | 3 |
| (6) (Blank). | 4 |
| (7) A provision requiring the deposit of all Lottery | 5 |
| proceeds to be deposited into the State Lottery Fund. | 6 |
| (8) A provision requiring the private manager to locate | 7 |
| its principal office within the State. | 8 |
| (8-5) A provision encouraging that at least 20% of the | 9 |
| cost of contracts entered into for goods and services by | 10 |
| the private manager in connection with its management of | 11 |
| the Lottery, other than contracts with sales agents or | 12 |
| technical advisors, be awarded to businesses that are a | 13 |
| minority owned business, a female owned business, or a | 14 |
| business owned by a person with disability, as those terms | 15 |
| are defined in the Business Enterprise for Minorities, | 16 |
| Females, and Persons with Disabilities Act. | 17 |
| (9) A requirement that so long as the private manager | 18 |
| complies with all the conditions of the agreement under the | 19 |
| oversight of the Department, the private manager shall have | 20 |
| the following duties and obligations with respect to the | 21 |
| management of the Lottery: | 22 |
| (A) The right to use equipment and other assets | 23 |
| used in the operation of the Lottery. | 24 |
| (B) The rights and obligations under contracts | 25 |
| with retailers and vendors. | 26 |
| (C) The implementation of a comprehensive security |
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| program by the private manager. | 2 |
| (D) The implementation of a comprehensive system | 3 |
| of internal audits. | 4 |
| (E) The implementation of a program by the private | 5 |
| manager to curb compulsive gambling by persons playing | 6 |
| the Lottery. | 7 |
| (F) A system for determining (i) the type of | 8 |
| Lottery games, (ii) the method of selecting winning | 9 |
| tickets, (iii) the manner of payment of prizes to | 10 |
| holders of winning tickets, (iv) the frequency of | 11 |
| drawings of winning tickets, (v) the method to be used | 12 |
| in selling tickets, (vi) a system for verifying the | 13 |
| validity of tickets claimed to be winning tickets, | 14 |
| (vii) the basis upon which retailer commissions are | 15 |
| established by the manager, and (viii) minimum | 16 |
| payouts. | 17 |
| (10) A requirement that advertising and promotion must | 18 |
| be consistent with Section 7.8a of this Act. | 19 |
| (11) A requirement that the private manager market the | 20 |
| Lottery to those residents who are new, infrequent, or | 21 |
| lapsed players of the Lottery, especially those who are | 22 |
| most likely to make regular purchases on the Internet as | 23 |
| permitted by law. | 24 |
| (12) A code of ethics for the private manager's | 25 |
| officers and employees. | 26 |
| (13) A requirement that the Department monitor and |
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| oversee the private manager's practices and take action | 2 |
| that the Department considers appropriate to ensure that | 3 |
| the private manager is in compliance with the terms of the | 4 |
| management agreement, while allowing the manager, unless | 5 |
| specifically prohibited by law or the management | 6 |
| agreement, to negotiate and sign its own contracts with | 7 |
| vendors. | 8 |
| (14) A provision requiring the private manager to | 9 |
| periodically file, at least on an annual basis, appropriate | 10 |
| financial statements in a form and manner acceptable to the | 11 |
| Department. | 12 |
| (15) Cash reserves requirements. | 13 |
| (16) Procedural requirements for obtaining the prior | 14 |
| approval of the Department when a management agreement or | 15 |
| an interest in a management agreement is sold, assigned, | 16 |
| transferred, or pledged as collateral to secure financing. | 17 |
| (17) Grounds for the termination of the management | 18 |
| agreement by the Department or the private manager. | 19 |
| (18) Procedures for amendment of the agreement. | 20 |
| (19) A provision requiring the private manager to | 21 |
| engage in an open and competitive bidding process for any | 22 |
| procurement having a cost in excess of $50,000 that is not | 23 |
| a part of the private manager's final offer. The process | 24 |
| shall favor the selection of a vendor deemed to have | 25 |
| submitted a proposal that provides the Lottery with the | 26 |
| best overall value. The process shall not be subject to the |
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| provisions of the Illinois Procurement Code, unless | 2 |
| specifically required by the 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 its | 13 |
| obligations under the management agreement during the term | 14 |
| of the agreement. | 15 |
| (e) Notwithstanding any other law to the contrary, the | 16 |
| Department shall select a private manager through a competitive | 17 |
| request for qualifications process consistent with Section | 18 |
| 20-35 of the Illinois Procurement Code, which shall take into | 19 |
| account: | 20 |
| (1) the offeror's ability to market the Lottery to | 21 |
| those residents who are new, infrequent, or lapsed players | 22 |
| of the Lottery, especially those who are most likely to | 23 |
| make regular purchases on the Internet; | 24 |
| (2) the offeror's ability to address the State's | 25 |
| concern with the social effects of gambling on those who | 26 |
| can least afford to do so; |
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| (3) the offeror's ability to provide the most | 2 |
| successful management of the Lottery for the benefit of the | 3 |
| people of the State based on current and past business | 4 |
| practices or plans of the offeror; and | 5 |
| (4) the offeror's poor or inadequate past performance | 6 |
| in servicing, equipping, operating or managing a lottery on | 7 |
| behalf of Illinois, another State or foreign government and | 8 |
| attracting persons who are not currently regular players of | 9 |
| a lottery. | 10 |
| (f) The Department may retain the services of an advisor or | 11 |
| advisors with significant experience in financial services or | 12 |
| the management, operation, and procurement of goods, services, | 13 |
| and equipment for a government-run lottery to assist in the | 14 |
| preparation of the terms of the request for qualifications and | 15 |
| selection of the private manager. Any prospective advisor | 16 |
| seeking to provide services under this subsection (f) shall | 17 |
| disclose any material business or financial relationship | 18 |
| during the past 3 years with any potential offeror, or with a | 19 |
| contractor or subcontractor presently providing goods, | 20 |
| services, or equipment to the Department to support the | 21 |
| Lottery. The Department shall evaluate the material business or | 22 |
| financial relationship of each prospective advisor. The | 23 |
| Department shall not select any prospective advisor with a | 24 |
| substantial business or financial relationship that the | 25 |
| Department deems to impair the objectivity of the services to | 26 |
| be provided by the prospective advisor. During the course of |
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| the advisor's engagement by the Department, and for a period of | 2 |
| one year thereafter, the advisor shall not enter into any | 3 |
| business or financial relationship with any offeror or any | 4 |
| vendor identified to assist an offeror in performing its | 5 |
| obligations under the management agreement. Any advisor | 6 |
| retained by the Department shall be disqualified from being an | 7 |
| offeror.
The Department shall not include terms in the request | 8 |
| for qualifications that provide a material advantage whether | 9 |
| directly or indirectly to any potential offeror, or any | 10 |
| contractor or subcontractor presently providing goods, | 11 |
| services, or equipment to the Department to support the | 12 |
| Lottery, including terms contained in previous responses to | 13 |
| requests for proposals or qualifications submitted to | 14 |
| Illinois, another State or foreign government when those terms | 15 |
| are uniquely associated with a particular potential offeror, | 16 |
| contractor, or subcontractor. The request for proposals | 17 |
| offered by the Department on December 22, 2008 as | 18 |
| "LOT08GAMESYS" and reference number "22016176" is declared | 19 |
| void. | 20 |
| (g) The Department shall select at least 2 offerors as | 21 |
| finalists to potentially serve as the private manager no later | 22 |
| than August 9, 2010. Upon making preliminary selections, the | 23 |
| Department shall schedule a public hearing on the finalists' | 24 |
| proposals and provide public notice of the hearing at least 7 | 25 |
| calendar days before the hearing. The notice must include all | 26 |
| of the following: |
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| (1) The date, time, and place of the hearing. | 2 |
| (2) The subject matter of the hearing. | 3 |
| (3) A brief description of the management agreement to | 4 |
| be awarded. | 5 |
| (4) The identity of the offerors that have been | 6 |
| selected as finalists to serve as the private manager. | 7 |
| (5) The address and telephone number of the Department. | 8 |
| (h) At the public hearing, the Department shall (i) provide | 9 |
| sufficient time for each finalist to present and explain its | 10 |
| proposal to the Department and the Governor or the Governor's | 11 |
| designee, including an opportunity to respond to questions | 12 |
| posed by the Department, Governor, or designee and (ii) allow | 13 |
| the public and non-selected offerors to comment on the | 14 |
| presentations. The Governor or a designee shall attend the | 15 |
| public hearing. After the public hearing, the Department shall | 16 |
| have 14 calendar days to recommend to the Governor whether a | 17 |
| management agreement should be entered into with a particular | 18 |
| finalist. After reviewing the Department's recommendation, the | 19 |
| Governor may accept or reject the Department's recommendation, | 20 |
| and shall select a final offeror as the private manager by | 21 |
| publication of a notice in the Illinois Procurement Bulletin on | 22 |
| or before September 15, 2010. The Governor shall include in the | 23 |
| notice a detailed explanation and the reasons why the final | 24 |
| offeror is superior to other offerors and will provide | 25 |
| management services in a manner that best achieves the | 26 |
| objectives of this Section. The Governor shall also sign the |
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| management agreement with the private manager. | 2 |
| (i) Any action to contest the private manager selected by | 3 |
| the Governor under this Section must be brought within 7 | 4 |
| calendar days after the publication of the notice of the | 5 |
| designation of the private manager as provided in subsection | 6 |
| (h) of this Section. | 7 |
| (j) The Lottery shall remain, for so long as a private | 8 |
| manager manages the Lottery in accordance with provisions of | 9 |
| this Act, a Lottery conducted by the State, and the State shall | 10 |
| not be authorized to sell or transfer the Lottery to a third | 11 |
| party. | 12 |
| (k) Any tangible personal property used exclusively in | 13 |
| connection with the lottery that is owned by the Department and | 14 |
| leased to the private manager shall be owned by the Department | 15 |
| in the name of the State and shall be considered to be public | 16 |
| property devoted to an essential public and governmental | 17 |
| function. | 18 |
| (l) The Department may exercise any of its powers under | 19 |
| this Section or any other law as necessary or desirable for the | 20 |
| execution of the Department's powers under this Section. | 21 |
| (m) Neither this Section nor any management agreement | 22 |
| entered into under this Section prohibits the General Assembly | 23 |
| from authorizing forms of gambling that are not in direct | 24 |
| competition with the Lottery. | 25 |
| (n) The private manager shall be subject to a complete | 26 |
| investigation in the third, seventh, and tenth years of the |
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| agreement (if the agreement is for a 10-year term) by the | 2 |
| Department in cooperation with the Auditor General to determine | 3 |
| whether the private manager has complied with this Section and | 4 |
| the management agreement. The private manager shall bear the | 5 |
| cost of an investigation or reinvestigation of the private | 6 |
| manager under this subsection. | 7 |
| (o) The powers conferred by this Section are in addition | 8 |
| and supplemental to the powers conferred by any other law. If | 9 |
| any other law or rule is inconsistent with this Section, | 10 |
| including, but not limited to, provisions of the Illinois | 11 |
| Procurement Code, then this Section controls as to any | 12 |
| management agreement entered into under this Section. This | 13 |
| Section and any rules adopted under this Section contain full | 14 |
| and complete authority for a management agreement between the | 15 |
| Department and a private manager. No law, procedure, | 16 |
| proceeding, publication, notice, consent, approval, order, or | 17 |
| act by the Department or any other officer, Department, agency, | 18 |
| or instrumentality of the State or any political subdivision is | 19 |
| required for the Department to enter into a management | 20 |
| agreement under this Section. This Section contains full and | 21 |
| complete authority for the Department to approve any contracts | 22 |
| entered into by a private manager with a vendor providing | 23 |
| goods, services, or both goods and services to the private | 24 |
| manager under the terms of the management agreement. | 25 |
| Except as provided in Sections 21.2, 21.5, 21.6, 21.7, and | 26 |
| 21.8, the Department shall distribute all proceeds of lottery |
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| tickets and shares sold in the following priority and manner: | 2 |
| (1) The payment of prizes and retailer bonuses. | 3 |
| (2) The payment of costs incurred in the operation and | 4 |
| administration of the Lottery, including the payment of | 5 |
| sums due to the private manager under the management | 6 |
| agreement with the Department and payment of sums due to | 7 |
| the private vendor for lottery tickets and shares sold on | 8 |
| the Internet via the pilot program as compensation under | 9 |
| its contract with the Department. | 10 |
| (3) On the last day of each month or as soon thereafter | 11 |
| as possible, the State Comptroller shall direct and the | 12 |
| State Treasurer shall transfer from the Lottery Fund to the | 13 |
| Lottery Supports Schools Fund Common School Fund an amount | 14 |
| that is equal to the proceeds transferred in the | 15 |
| corresponding month of fiscal year 2009, as adjusted for | 16 |
| inflation, to the Common School Fund. | 17 |
| (4) On or before the last day of each fiscal year, | 18 |
| deposit any remaining proceeds, subject to payments under | 19 |
| items (1), (2), and (3) into the Capital Projects Fund each | 20 |
| fiscal year. | 21 |
| (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840, | 22 |
| eff. 12-23-09.)
| 23 |
| (20 ILCS 1605/19) (from Ch. 120, par. 1169)
| 24 |
| Sec. 19. Period for claiming prizes; unclaimed prizes. The | 25 |
| Division shall establish an appropriate period for the
claiming |
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| of prizes for each lottery game offered. Each claim period | 2 |
| shall
be stated in game rules and written play
instructions | 3 |
| issued by the Superintendent in accordance with Section 7.1 of
| 4 |
| this Act. Written play instructions shall be made available to | 5 |
| all players
through sales agents licensed to sell game tickets | 6 |
| or shares.
Prizes for lottery games which involve the purchase | 7 |
| of a physical lottery
ticket may be claimed only by | 8 |
| presentation of a valid winning lottery
ticket that matches | 9 |
| validation records on file with the Lottery; no
claim may be | 10 |
| honored which is based on the assertion that the ticket was
| 11 |
| lost or stolen. No lottery ticket which has been altered, | 12 |
| mutilated, or
fails to pass validation tests shall be deemed to | 13 |
| be a winning ticket.
| 14 |
| If no claim
is made for the money within the established | 15 |
| claim period, the prize may
be included in the prize pool of | 16 |
| such special drawing or drawings as the
Division may, from time | 17 |
| to time, designate. Unclaimed
multi-state game prize money may | 18 |
| be included in the multi-state
prize
pool for such special | 19 |
| drawing or drawings as the multi-state game directors
may, from | 20 |
| time to time, designate. Any bonuses offered by the Department
| 21 |
| to sales agents who sell winning tickets or shares shall be
| 22 |
| payable to such agents regardless of whether or not the prize | 23 |
| money on the
ticket or share is claimed, provided that the | 24 |
| agent can be identified as
the vendor of the winning ticket or | 25 |
| share, and
that the winning ticket or share was sold on or | 26 |
| after January 1, 1984.
All unclaimed prize money not included |
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| in the prize pool of a special
drawing shall be transferred to | 2 |
| the Lottery Supports Schools Fund Common School Fund .
| 3 |
| (Source: P.A. 94-776, eff. 5-19-06.)
| 4 |
| (20 ILCS 1605/20) (from Ch. 120, par. 1170)
| 5 |
| Sec. 20. State Lottery Fund.
| 6 |
| (a) There is created in the State Treasury a special fund | 7 |
| to be
known as the "State Lottery Fund". Such fund shall | 8 |
| consist of all revenues
received from (1) the sale of lottery | 9 |
| tickets or shares, (net of
commissions, fees
representing those | 10 |
| expenses that are directly proportionate to the
sale of tickets | 11 |
| or shares at the agent location, and prizes of less
than
$600 | 12 |
| which
have been validly paid at the agent
level), (2) | 13 |
| application fees,
and (3) all other sources including moneys | 14 |
| credited or transferred thereto
from
any other fund
or source | 15 |
| pursuant to law. Interest earnings of the State Lottery Fund
| 16 |
| shall be credited to the Lottery Supports Schools Fund Common | 17 |
| School Fund .
| 18 |
| (b) The receipt and distribution of moneys under Section | 19 |
| 21.5 of this Act shall be in accordance with Section 21.5.
| 20 |
| (c) The receipt and distribution of moneys under Section | 21 |
| 21.6 of this Act shall be in accordance with Section 21.6. | 22 |
| (d) The receipt and distribution of moneys under Section | 23 |
| 21.7 of this Act shall be in accordance with Section 21.7.
| 24 |
| (e)
The receipt and distribution of moneys under Section | 25 |
| 21.8
of this Act shall be in accordance with Section 21.8.
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| (Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05; | 2 |
| 95-331, eff. 8-21-07; 95-673, eff. 10-11-07; 95-674, eff. | 3 |
| 10-11-07; 95-876, eff. 8-21-08.)
| 4 |
| (20 ILCS 1605/20.1) (from Ch. 120, par. 1170.1)
| 5 |
| Sec. 20.1. Department account.
| 6 |
| (a) The Department is authorized to pay validated prizes
up | 7 |
| to $25,000 from funds held by the Department in an account | 8 |
| separate and
apart from all public moneys of the State. Moneys | 9 |
| in this account shall be
administered by the Director | 10 |
| exclusively for the purposes of issuing payments
to prize | 11 |
| winners authorized by this Section. Moneys in this account | 12 |
| shall be
deposited by the Department into the Public | 13 |
| Treasurers' Investment Pool
established under Section 17 of the | 14 |
| State Treasurer Act. The Department shall
submit vouchers from | 15 |
| time to time as needed for reimbursement of this account
from | 16 |
| moneys appropriated for prizes from the State Lottery Fund. | 17 |
| Investment
income earned from this account shall be deposited | 18 |
| monthly by the Department
into the Lottery Supports Schools | 19 |
| Fund Common School Fund . The Department shall file quarterly | 20 |
| fiscal
reports specifying the activity of this account as | 21 |
| required under Section 16 of
the State Comptroller Act, and | 22 |
| shall file quarterly with the General Assembly,
the Auditor | 23 |
| General, the Comptroller, and the State Treasurer a report
| 24 |
| indicating the costs associated with this activity.
| 25 |
| (b) The Department is authorized to enter into an |
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| interagency agreement
with the Office of the Comptroller or any | 2 |
| other State agency to establish
responsibilities, duties, and | 3 |
| procedures for complying with the Comptroller's
Offset System | 4 |
| under Section 10.05 of the State Comptroller Act. All federal
| 5 |
| and State tax reporting and withholding requirements relating | 6 |
| to prize winners
under this Section shall be the responsibility | 7 |
| of the Department. Moneys from
this account may not be used to | 8 |
| pay amounts to deferred prize winners. Moneys
may not be | 9 |
| transferred from the State Lottery Fund to this account for | 10 |
| payment
of prizes under this Section until procedures are | 11 |
| implemented to comply with
the Comptroller's Offset System and | 12 |
| sufficient internal controls are in place
to validate prizes.
| 13 |
| (Source: P.A. 87-1197; 88-676, eff. 12-14-94.)
| 14 |
| (20 ILCS 1605/20.2 new)
| 15 |
| Sec. 20.2. Lottery Supports Schools Fund. There is created | 16 |
| a Fund to be known as the Lottery Supports Schools Fund, which | 17 |
| is a non-appropriated trust fund held outside of the State | 18 |
| treasury. The Fund shall consist of moneys paid into it by the | 19 |
| Division as provided in this Law. The Division shall certify | 20 |
| each month to the State Board of Education the proportion of | 21 |
| lottery sales in each school district in relation to statewide | 22 |
| lottery sales. The moneys in the Lottery Supports Schools Fund | 23 |
| must be distributed monthly by the State Board of Education to | 24 |
| each school district based upon that school district's portion | 25 |
| of statewide lottery sales. |
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| Section 10. The School Code is amended by adding Section | 2 |
| 2-3.153 as follows: | 3 |
| (105 ILCS 5/2-3.153 new) | 4 |
| Sec. 2-3.153. Distributions from the Lottery Supports | 5 |
| Schools Fund. The State Board of Education shall make | 6 |
| distributions from the Lottery Supports Schools Fund as | 7 |
| provided in Section 20.2 of the Illinois Lottery Law; however, | 8 |
| the State Board of Education shall not take into account these | 9 |
| distributions when computing State aid under Section 18-8.05 of | 10 |
| this Code.
| 11 |
| Section 99. Effective date. This Act takes effect when the | 12 |
| State Board of Education certifies to the Secretary of State | 13 |
| and the Illinois Department of Revenue that the amounts by | 14 |
| which this amendatory Act of the 96th General Assembly reduces | 15 |
| the amounts otherwise available for distribution under the | 16 |
| general State aid formula (105 ILCS 5/18-8.05) have been | 17 |
| replaced by other revenue sources.
|
|