Public Act 100-1068
 
SB0211 EnrolledLRB100 04957 MJP 14967 b


  
    AN ACT concerning gaming.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  




 
    Section 1. This Act may be referred to as the Illinois 
Homeless Veterans and Working Families Lottery Law.
 
    Section 5. The Illinois Lottery Law is amended  by changing 
Sections 2, 9, 9.1, and 20 and by adding Section 21.10 as 
follows:
 


    (20 ILCS 1605/2)  (from Ch. 120, par. 1152)

    (Text of Section before amendment by P.A. 100-466)

    Sec. 2. This Act is enacted to implement and establish 
within the State
a lottery to be conducted by the State through 
the Department. The entire net proceeds of the Lottery
are to 
be used for the support of the State's Common School Fund,

except as provided in subsection (o) of Section 9.1 and 
Sections 21.5, 21.6, 21.7, 21.8, and 21.9, and 21.10. The 
General Assembly finds that it is in the public interest for 
the Department to conduct the functions of the Lottery with the 
assistance of a private manager under a management agreement 
overseen by the Department.  The Department shall be accountable 
to the General Assembly and the people of the State through a 
comprehensive system of regulation, audits, reports, and 
enduring operational oversight.  The Department's ongoing 
conduct of the Lottery through a management agreement with a 
private manager shall act to promote and ensure the integrity, 
security, honesty, and fairness of the Lottery's operation and 
administration.  It is the intent of the General Assembly that 
the Department shall conduct the Lottery with the assistance of 
a private manager under a management agreement at all times in 
a manner consistent with 18 U.S.C. 1307(a)(1), 1307(b)(1), 
1953(b)(4). 

(Source: P.A. 98-649, eff. 6-16-14; 99-933, eff. 1-27-17.)

 
    (Text of Section after amendment by P.A. 100-466)
    Sec. 2. This Act is enacted to implement and establish 
within the State
a lottery to be conducted by the State through 
the Department. The entire net proceeds of the Lottery
are to 
be used for the support of the State's Common School Fund,

except as provided in subsection (o) of Section 9.1 and 
Sections 21.5, 21.6, 21.7, 21.8, and 21.9, and 21.10. The 
General Assembly finds that it is in the public interest for 
the Department to conduct the functions of the Lottery with the 
assistance of a private manager under a management agreement 
overseen by the Department.  The Department shall be accountable 
to the General Assembly and the people of the State through a 
comprehensive system of regulation, audits, reports, and 
enduring operational oversight.  The Department's ongoing 
conduct of the Lottery through a management agreement with a 
private manager shall act to promote and ensure the integrity, 
security, honesty, and fairness of the Lottery's operation and 
administration.  It is the intent of the General Assembly that 
the Department shall conduct the Lottery with the assistance of 
a private manager under a management agreement at all times in 
a manner consistent with 18 U.S.C. 1307(a)(1), 1307(b)(1), 
1953(b)(4). 

    Beginning with Fiscal Year 2018 and every year thereafter, 
any moneys transferred from the State Lottery Fund to the 
Common School Fund shall be supplemental to, and not in lieu 
of, any other money due to be transferred to the Common School 
Fund by law or appropriation. 
(Source: P.A. 99-933, eff. 1-27-17; 100-466, eff. 6-1-18.)

 



    (20 ILCS 1605/9)  (from Ch. 120, par. 1159)


    Sec. 9. The Director, as administrative head of
the 
Department, shall direct and supervise all its administrative 
and
technical activities.  In addition to the duties imposed 
upon him
elsewhere in this Act, it
shall be the Director's 
duty:

        a.  To supervise and administer the operation of the 
    lottery in
accordance with the provisions of this Act or 
    such
rules and regulations of the Department
adopted 
    thereunder.

        b.  To attend meetings of the Board or to appoint a 
    designee to
attend in his stead.

        c.  To employ and direct such personnel in accord with 
    the Personnel Code,
as may be necessary to carry out the 
    purposes of this Act.
 In addition, the Director

may by 
    agreement secure such services as he or she may deem 
    necessary
from any other department, agency, or unit of the 
    State government, and
may employ and compensate such 
    consultants and technical assistants as may
be required and 
    is otherwise permitted by law.

        d. To license, in accordance with the provisions of 
    Sections 10 and 10.1
of this Act and the rules and 
    regulations of the Department
adopted thereunder,
as 
    agents to sell lottery tickets such persons as in his 
    opinion will best
serve the public convenience and promote 
    the sale of tickets or shares.
The Director may require a 
    bond from every licensed agent, in such
amount as provided 
    in the rules and regulations of the Department.  Every 
    licensed
agent shall prominently display his license, or a 
    copy thereof, as provided
in the rules and regulations of 
    the Department.

        e. To suspend or revoke any license issued pursuant to 
    this Act or the
rules and regulations promulgated by the 
    Department thereunder.

        f. To confer regularly as necessary or desirable and 
    not
less than once
every month with the Lottery Control 
    Board on the operation and administration
of the Lottery; 
    to make available for inspection by the Board or any member

    of the Board, upon request, all books, records, files, and 
    other information
and documents of his office; to advise 
    the Board and recommend such rules
and regulations and such 
    other matters as he deems necessary and advisable
to 
    improve the operation and administration of the lottery.

        g. To enter into contracts for the operation of the 
    lottery, or any part
thereof, and into contracts for the 
    promotion of the lottery on behalf of
the Department with 
    any person, firm or corporation, to perform any of the

    functions provided for in this Act or the rules and 
    regulations promulgated
thereunder.  The Department shall 
    not expend State funds on a contractual
basis for such 
    functions unless those functions and expenditures are 
    expressly
authorized by the General Assembly.

        h. To enter into an agreement or agreements with the 
    management of state
lotteries operated pursuant to the laws 
    of other states for the purpose of
creating and operating a 
    multi-state lottery game wherein a separate and
distinct 
    prize pool would be combined to award larger prizes to the 
    public
than could be offered by the several state 
    lotteries, individually.  No
tickets or shares offered in 
    connection with a multi-state lottery game
shall be sold 
    within the State of Illinois, except those offered by and

    through the Department.  No such agreement shall purport to 
    pledge the full
faith and credit of the State of Illinois, 
    nor shall the Department expend
State funds on a 
    contractual basis in connection with any such game unless

    such expenditures are expressly authorized by the General 
    Assembly,
provided, however, that in the event of error or 
    omission by the Illinois
State Lottery in the conduct of 
    the game, as determined by the multi-state
game directors, 
    the Department shall be authorized to pay a prize winner or

    winners the lesser of a disputed prize or $1,000,000, any 
    such payment to
be made solely from funds appropriated for 
    game prize purposes.  The
Department shall be authorized to 
    share in the ordinary operating expenses
of any such 
    multi-state lottery game, from funds appropriated by the 
    General Assembly,
and in the event the multi-state game 
    control offices are physically
located within the State of 
    Illinois, the Department is authorized to
advance start-up 
    operating costs not to exceed $150,000, subject to

    proportionate reimbursement of such costs by the other 
    participating state
lotteries.  The Department shall be 
    authorized to share proportionately in
the costs of 
    establishing a liability reserve fund from funds 
    appropriated
by the General Assembly.  The Department is 
    authorized to transfer prize
award funds attributable to 
    Illinois sales of multi-state lottery game tickets to
the 
    multi-state control office, or its designated depository, 
    for deposit
to such game pool account or accounts as may be 
    established by the
multi-state game directors, the records 
    of which account or accounts shall
be available at all 
    times for inspection in an audit by the Auditor General
of 
    Illinois and any other auditors pursuant to the laws of the 
    State of
Illinois.
No multi-state game prize awarded to a 
    nonresident of Illinois, with
respect to a ticket or share 
    purchased in a state other than the State of
Illinois, 
    shall be deemed to be a prize awarded under this Act for 
    the
purpose of taxation under the Illinois Income Tax Act.


    The Department shall promulgate such rules as may be 
    appropriate to
implement the provisions of this Section.

        i. To make a continuous study and investigation of (1) 
    the operation and
the administration of similar laws which 
    may be in effect in other states
or countries, (2) any 
    literature on the subject which from time to time
may be 
    published or available, (3) any Federal laws which may 
    affect the
operation  of the
lottery,  and  (4) the reaction 
    of Illinois citizens to existing and potential
features of 
    the lottery with a view to recommending or effecting 
    changes
that will tend to serve the purposes of this Act.

        j. To report monthly to the State Treasurer and the 
    Lottery Control Board
a full and complete statement of 
    lottery revenues, prize disbursements and
other expenses 
    for each month and the amounts to be transferred to the 
    Common
School Fund pursuant to Section 7.2, and to
make an 
    annual report, which shall include a full and complete 
    statement
of lottery revenues, prize disbursements and 
    other expenses, to the Governor
and the Board.  All reports 
    required by this subsection shall be public
and copies of 
    all
such reports shall be sent to the Speaker of the House, 
    the President of
the Senate, and the minority leaders of 
    both houses.
        k. To keep the name and municipality of residence of  
    the prize winner of a prize of $250,000 or greater 
    confidential upon the prize winner making a written request 
    that his or her name and municipality of residence be kept 
    confidential. The prize winner must submit his or her 
    written request at the time of claiming the prize.  The 
    written request shall be in the form established by the 
    Department. Nothing in this paragraph k supersedes the 
    Department's duty to disclose the name and municipality of 
    residence of a prize winner of a prize of $250,000 or 
    greater pursuant to the Freedom of Information Act. 

(Source: P.A. 98-499, eff. 8-16-13; 99-933, eff. 1-27-17.)

 
    (20 ILCS 1605/9.1)
    Sec. 9.1. Private manager and management agreement.
    (a) As used in this Section:
    "Offeror" means a person or group of persons that responds 
to a request for qualifications under this Section.
    "Request for qualifications" means all materials and 
documents prepared by the Department to solicit the following 
from offerors:
        (1) Statements of qualifications.
        (2) Proposals to enter into a management agreement, 
    including the identity of any prospective vendor or vendors 
    that the offeror intends to initially engage to assist the 
    offeror in performing its obligations under the management 
    agreement.
    "Final offer" means the last proposal submitted by an 
offeror in response to the request for qualifications, 
including the identity of any prospective vendor or vendors 
that the offeror intends to initially engage to assist the 
offeror in performing its obligations under the management 
agreement. 
    "Final offeror" means the offeror ultimately selected by 
the Governor to be the private manager for the Lottery under 
subsection (h) of this Section.
    (b) By September 15, 2010, the Governor shall select a 
private manager for the total management of the Lottery with 
integrated functions, such as lottery game design, supply of 
goods and services, and advertising and as specified in this 
Section.
    (c) Pursuant to the terms of this subsection, the 
Department shall endeavor to expeditiously terminate the 
existing contracts in support of the Lottery in effect on the 
effective date of this amendatory Act of the 96th General 
Assembly in connection with the selection of the private 
manager.  As part of its obligation to terminate these contracts 
and select the private manager, the Department shall establish 
a mutually agreeable timetable to transfer the functions of 
existing contractors to the private manager so that existing 
Lottery operations are not materially diminished or impaired 
during the transition.  To that end, the Department shall do the 
following:
        (1) where such contracts contain a provision 
    authorizing termination upon notice, the Department shall 
    provide notice of termination to occur upon the mutually 
    agreed timetable for transfer of functions;
        (2) upon the expiration of any initial term or renewal 
    term of the current Lottery  contracts, the Department shall 
    not renew such contract for a term extending beyond the 
    mutually agreed timetable for transfer of functions; or
        (3) in the event any current contract provides for 
    termination of that contract upon the implementation of a 
    contract with the private manager, the Department shall 
    perform all necessary actions to terminate the contract on 
    the date that coincides with the mutually agreed timetable 
    for transfer of functions.
    If the contracts to support the current operation of the 
Lottery in effect on the effective date of this amendatory Act 
of the 96th General Assembly are not subject to termination as 
provided for in this subsection (c), then the Department may 
include a provision in the contract with the private manager 
specifying a mutually agreeable methodology for incorporation.
    (c-5) The Department shall include provisions in the 
management agreement whereby the private manager shall, for a 
fee, and pursuant to a contract negotiated with the Department 
(the "Employee Use Contract"), utilize the services of current 
Department employees to assist in the administration and 
operation of the Lottery.  The Department shall be the employer 
of all such bargaining unit employees assigned to perform such 
work for the private manager, and such employees shall be State 
employees, as defined by the Personnel Code.  Department 
employees shall operate under the same employment policies, 
rules, regulations, and procedures, as other employees of the 
Department.  In addition, neither historical representation 
rights under the Illinois Public Labor Relations Act, nor 
existing collective bargaining agreements, shall be disturbed 
by the management agreement with the private manager for the 
management of the Lottery. 
    (d) The management agreement with the private manager shall 
include all of the following:
        (1) A term not to exceed 10 years, including any 
    renewals.
        (2) A provision specifying that the Department:
            (A) shall exercise actual control over all 
        significant business decisions; 
            (A-5) has the authority to direct or countermand 
        operating decisions by the private manager at any time;
            (B) has ready access at any time to information 
        regarding Lottery operations;
            (C) has the right to demand and receive information 
        from the private manager concerning any aspect of the 
        Lottery operations at any time; and
            (D) retains ownership of all trade names, 
        trademarks, and intellectual property associated with 
        the Lottery.
        (3) A provision imposing an affirmative duty on the 
    private manager to provide the Department with material 
    information and with any information the private manager 
    reasonably believes the Department would want to know to 
    enable the Department to conduct the Lottery.
        (4) A provision requiring the private manager to 
    provide the Department with advance notice of any operating 
    decision that bears significantly on the public interest, 
    including, but not limited to, decisions on the kinds of 
    games to be offered to the public and decisions affecting 
    the relative risk and reward of the games being offered, so 
    the Department has a reasonable opportunity to evaluate and 
    countermand that decision.
        (5) A provision providing for compensation of the 
    private manager that may consist of, among other things, a 
    fee for services and a performance based bonus as 
    consideration for managing the Lottery, including terms 
    that may provide the private manager with an increase in 
    compensation if Lottery revenues grow by a specified 
    percentage in a given year.
        (6) (Blank).
        (7) A provision requiring the deposit of all Lottery 
    proceeds to be deposited into the State Lottery Fund except 
    as otherwise provided in Section 20 of this Act.
        (8) A provision requiring the private manager to locate 
    its principal office within the State.
        (8-5) A provision encouraging that at least 20% of the 
    cost of contracts entered into for goods and services by 
    the private manager in connection with its management of 
    the Lottery, other than contracts with sales agents or 
    technical advisors, be awarded to businesses that are a 
    minority-owned business, a women-owned business, or a 
    business owned by a person with disability, as those terms 
    are defined in the Business Enterprise for Minorities, 
    Women, and Persons with Disabilities Act. 
        (9) A requirement that so long as the private manager 
    complies with all the conditions of the agreement under the 
    oversight of the Department, the private manager shall have 
    the following  duties and obligations with respect to the 
    management of the Lottery:
            (A) The right to use equipment and other assets 
        used in the operation of the Lottery.
            (B) The rights and obligations under contracts 
        with retailers and vendors.
            (C) The implementation of a comprehensive security 
        program by the private manager.
            (D) The implementation of a comprehensive system 
        of internal audits.
            (E) The implementation of a program by the private 
        manager to curb compulsive gambling by persons playing 
        the Lottery.
            (F) A system for determining (i) the type of 
        Lottery games, (ii) the method of selecting winning 
        tickets, (iii) the manner of payment of prizes to 
        holders of winning tickets, (iv) the frequency of 
        drawings of winning tickets, (v) the method to be used 
        in selling tickets, (vi) a system for verifying the 
        validity of tickets claimed to be winning tickets, 
        (vii) the basis upon which retailer commissions are 
        established by the manager, and (viii) minimum 
        payouts.
        (10) A requirement that advertising and promotion must 
    be consistent with Section 7.8a of this Act.
        (11) A requirement that the private manager market the 
    Lottery to those residents who are new, infrequent, or 
    lapsed players of the Lottery, especially those who are 
    most likely to make regular purchases on the Internet as 
    permitted by law.
        (12) A code of ethics for the private manager's 
    officers and employees.
        (13) A requirement that the Department monitor and 
    oversee the private manager's practices and take action 
    that the Department considers appropriate to ensure that 
    the private manager is in compliance with the terms of the 
    management agreement, while allowing the manager, unless 
    specifically prohibited by law or the management 
    agreement, to negotiate and sign its own contracts with 
    vendors.
        (14) A provision requiring the private manager to 
    periodically file, at least on an annual basis, appropriate 
    financial statements in a form and manner acceptable to the 
    Department.
        (15) Cash reserves requirements.
        (16) Procedural requirements for obtaining the prior 
    approval of the Department when a management agreement or 
    an interest in a management agreement is sold, assigned, 
    transferred, or pledged as collateral to secure financing.
        (17) Grounds for the termination of the management 
    agreement by the Department or the private manager.
        (18) Procedures for amendment of the agreement.
        (19) A provision requiring the private manager to 
    engage in an open and competitive bidding process for any 
    procurement having a cost in excess of $50,000 that is not 
    a part of the private manager's final offer.  The process 
    shall favor the selection of a vendor deemed to have 
    submitted a proposal that provides the Lottery with the 
    best overall value.  The process shall not be subject to the 
    provisions of the Illinois Procurement Code, unless 
    specifically required by the management agreement.
        (20)  The transition of rights and obligations, 
    including any associated equipment or other assets used in 
    the operation of the Lottery, from the manager to any 
    successor manager of the lottery, including the 
    Department, following the termination of or foreclosure 
    upon the management agreement.
        (21) Right of use of copyrights, trademarks, and 
    service marks held by the Department in the name of the 
    State.  The agreement must provide that any use of them by 
    the manager shall only be for the purpose of fulfilling its 
    obligations under the management agreement during the term 
    of the agreement.
        (22) The disclosure of any information requested by the 
    Department to enable it to comply with the reporting 
    requirements and information requests provided for under 
    subsection (p) of this Section. 
    (e) Notwithstanding any other law to the contrary, the 
Department shall select a private manager through a competitive 
request for qualifications process consistent with Section 
20-35 of the Illinois Procurement Code, which shall take into 
account:
        (1) the offeror's ability to market the Lottery to 
    those residents who are new, infrequent, or lapsed players 
    of the Lottery, especially those who are most likely to 
    make regular purchases on the Internet;
        (2) the offeror's ability to address the State's 
    concern with the social effects of gambling on those who 
    can least afford to do so;
        (3) the offeror's ability to provide the most 
    successful management of the Lottery for the benefit of the 
    people of the State based on current and past business 
    practices or plans of the offeror; and
        (4) the offeror's poor or inadequate  past performance 
    in servicing, equipping, operating or  managing a lottery on 
    behalf of Illinois, another State or foreign government and 
    attracting persons who are not currently regular players of 
    a lottery.
    (f) The Department may retain the services of an advisor or 
advisors with significant experience in financial services or 
the management, operation, and procurement of goods, services, 
and equipment for a government-run lottery to assist in the 
preparation of the terms of the request for qualifications and 
selection of the private manager. Any prospective advisor 
seeking to provide services under this subsection (f) shall 
disclose any material business or financial relationship 
during the past 3 years with any potential offeror, or with a 
contractor or subcontractor presently providing goods, 
services, or equipment to the Department to support the 
Lottery.  The Department shall evaluate the material business or 
financial relationship of each prospective advisor.  The 
Department shall not select any prospective advisor with a 
substantial business or financial relationship that the 
Department deems to impair the objectivity of the services to 
be provided by the prospective advisor. During the course of 
the advisor's engagement by the Department, and for a period of 
one year thereafter, the advisor shall not enter into any 
business or financial relationship with any offeror or any 
vendor identified to assist an offeror in performing its 
obligations under the management agreement. Any advisor 
retained by the Department shall be disqualified from being an 
offeror.

 The Department shall not include terms in the request 
for qualifications that provide a material advantage whether 
directly or indirectly to any potential offeror, or any 
contractor or subcontractor presently providing goods, 
services, or equipment to the Department to support the 
Lottery, including terms contained in previous responses to 
requests for proposals or qualifications submitted to 
Illinois, another State or foreign government when those terms 
are uniquely associated with a particular potential offeror, 
contractor, or subcontractor.  The request for proposals 
offered by the Department on December 22, 2008 as 
"LOT08GAMESYS" and reference number "22016176" is declared 
void.
    (g) The Department shall select at least 2 offerors as 
finalists to potentially serve as the  private manager no later 
than August 9, 2010.  Upon making preliminary selections, the 
Department shall schedule a public hearing on the finalists' 
proposals  and provide public notice of the hearing at least 7 
calendar days before the hearing.  The notice must include all 
of the following:
        (1) The date, time, and place of the hearing.
        (2) The subject matter of the hearing.
        (3) A brief description of the management agreement to 
    be awarded.
        (4) The identity of the offerors that have been 
    selected as finalists to serve  as the private manager.
        (5) The address and telephone number of the Department.
    (h) At the public hearing, the Department shall (i) provide 
sufficient time for each finalist to present and explain its 
proposal to the Department and the Governor or the Governor's 
designee, including an opportunity to respond to questions 
posed by the Department, Governor, or designee and (ii)  allow 
the public and non-selected offerors to comment  on the 
presentations.  The Governor or a designee shall attend the 
public hearing. After the public hearing, the Department shall 
have 14 calendar days to recommend to the Governor whether a 
management agreement should be entered into with a particular 
finalist.  After reviewing the Department's recommendation, the 
Governor may accept or reject the Department's recommendation, 
and shall select a final offeror  as the private manager by 
publication of a notice in the Illinois Procurement Bulletin on 
or before September 15, 2010. The Governor shall include in the 
notice a detailed explanation and the reasons why the final  
offeror is superior to other offerors and will provide 
management services in a manner that best achieves the 
objectives of this Section. The Governor shall also sign the 
management agreement with the private manager.
    (i) Any action to contest the private manager selected by 
the Governor under this Section must be brought within 7 
calendar days after the publication of the notice of the 
designation of the private manager as provided in subsection 
(h) of this Section.
    (j) The Lottery shall remain, for so long as a private 
manager manages the Lottery in accordance with provisions of 
this Act, a Lottery conducted by the State, and the State shall 
not be authorized to sell or transfer the Lottery to a third 
party.
    (k) Any tangible personal property used exclusively in 
connection with the lottery that is owned by the Department and 
leased to the private manager shall be owned by the Department 
in the name of the State and shall be considered to be public 
property devoted to an essential public and governmental 
function.
    (l) The Department may exercise any of its powers under 
this Section or any other law as necessary or desirable for the 
execution of the Department's powers under this Section.
    (m) Neither this Section nor any management agreement 
entered into under this Section prohibits the General Assembly 
from authorizing forms of gambling that are not in direct 
competition with the Lottery.
    (n) The private manager shall be subject to  a complete 
investigation in the third, seventh, and tenth years of the 
agreement (if the agreement is for a 10-year term) by the 
Department in cooperation with the Auditor General to determine 
whether the private manager has complied  with this Section and 
the management agreement.  The private manager shall bear the 
cost of an investigation or reinvestigation of the private 
manager under this subsection.
    (o) The powers conferred by this Section are in addition 
and supplemental to the powers conferred by any other law.  If 
any other law or rule is inconsistent with this Section, 
including, but not limited to, provisions of the Illinois 
Procurement Code, then this Section controls as to any 
management agreement entered into under this Section. This 
Section and any rules adopted under this Section contain full 
and complete authority for a management agreement between the 
Department and a private manager.  No law, procedure, 
proceeding, publication, notice, consent, approval, order, or 
act by the Department or any other officer, Department, agency, 
or instrumentality of the State or any political subdivision is 
required for the Department to enter into a management 
agreement under this Section.  This Section contains full and 
complete authority for the Department to approve any contracts 
entered into by a private manager with a vendor providing 
goods, services, or both goods and services to the private 
manager under the terms of the management agreement, including 
subcontractors of such vendors.
    Upon receipt of a written request from the Chief 
Procurement Officer, the Department shall provide to the Chief 
Procurement Officer a complete and un-redacted copy of the 
management agreement or any contract that is subject to the 
Department's approval authority under this subsection (o).  The 
Department shall provide a copy of the agreement or contract to 
the Chief Procurement Officer in the time specified by the 
Chief Procurement Officer in his or her written request, but no 
later than 5 business days after the request is received by the 
Department.  The Chief Procurement Officer must retain any 
portions of the management agreement or of any contract 
designated by the Department as confidential, proprietary, or 
trade secret information in complete confidence pursuant to 
subsection (g) of Section 7 of the Freedom of Information Act.  
The Department shall also provide the Chief Procurement Officer 
with reasonable advance written notice of any contract that is 
pending Department approval. 
    Notwithstanding any other provision of this Section to the 
contrary, the Chief Procurement Officer shall adopt 
administrative rules, including emergency rules, to establish 
a procurement process to select a successor private manager if 
a private management agreement has been terminated. The 
selection process shall at a minimum take into account the 
criteria set forth in items (1) through (4) of subsection (e) 
of this Section and may include provisions consistent with 
subsections (f), (g), (h), and (i) of this Section. The Chief 
Procurement Officer shall also implement and administer the 
adopted selection process upon the termination of a private 
management agreement. The Department, after the Chief 
Procurement Officer certifies that the procurement process has 
been followed in accordance with the rules adopted under this 
subsection (o), shall select a final offeror as the private 
manager and sign the management agreement with the private 
manager. 
    Except as provided in Sections 21.5, 21.6, 21.7, 21.8, and 
21.9, and 21.10, the Department shall distribute all proceeds 
of lottery tickets and shares sold in the following priority 
and manner:
        (1)   The payment of prizes and retailer bonuses.
        (2) The payment of costs incurred in the operation and 
    administration of the Lottery, including the payment of 
    sums due to the private manager under the management 
    agreement with the Department.
        (3)   On the last day of each month or as soon thereafter 
    as possible, the State Comptroller shall direct and the 
    State Treasurer shall transfer from the State Lottery Fund 
    to the Common School Fund an amount that is equal to the 
    proceeds transferred in the corresponding month of fiscal 
    year 2009, as adjusted for inflation, to the Common School 
    Fund.
        (4)   On or before the last day of each fiscal year, 
    deposit any remaining proceeds, subject to payments under 
    items (1), (2), and (3) into the Capital Projects Fund each 
    fiscal year. 
    (p) The Department shall be subject to the following 
reporting and information request requirements:
        (1) the Department shall submit written quarterly 
    reports to the Governor and the General Assembly on the 
    activities and actions of the private manager selected 
    under this Section;
        (2) upon request of the Chief Procurement Officer, the 
    Department shall promptly produce information related to 
    the procurement activities of the Department and the 
    private manager requested by the Chief Procurement 
    Officer; the Chief Procurement Officer must retain 
    confidential, proprietary, or trade secret information 
    designated by the Department in complete confidence 
    pursuant to subsection (g) of Section 7 of the Freedom of 
    Information Act; and
        (3) at least 30 days prior to the beginning of the 
    Department's fiscal year, the Department shall prepare an 
    annual written report on the activities of the private 
    manager selected under this Section and deliver that report 
    to the Governor and General Assembly.
(Source: P.A. 99-933, eff. 1-27-17; 100-391, eff. 8-25-17.)
 


    (20 ILCS 1605/20)  (from Ch. 120, par. 1170)


    Sec. 20. State Lottery Fund.

    (a) There is created in the State Treasury a special fund 
to be
known as the "State Lottery Fund". Such fund shall 
consist of all revenues
received from (1) the sale of lottery 
tickets or shares, (net of
commissions, fees
representing those 
expenses that are directly proportionate to the
sale of tickets 
or shares at the agent location, and prizes of less
than
$600 
which
have been validly paid at the agent
level), (2) 
application fees,
and (3) all other sources including moneys 
credited or transferred thereto
from
any other fund
or source 
pursuant to law. Interest earnings of the State Lottery Fund

shall be credited to the Common School Fund.

    (b) The receipt and distribution of moneys under Section 
21.5 of this Act shall be in accordance with Section 21.5.

    (c) The receipt and distribution of moneys under Section 
21.6 of this Act shall be in accordance with Section 21.6.
    (d) The receipt and distribution of moneys under Section 
21.7 of this Act shall be in accordance with Section 21.7.

    (e)
 The receipt and distribution of moneys under Section 
21.8
 of this Act shall be in accordance with Section 21.8.

    (f) The receipt and distribution of moneys under Section 
21.9 of this Act shall be in accordance with Section 21.9. 
    (g) The receipt and distribution of moneys under Section 
21.10 of this Act shall be in accordance with Section 21.10. 
(Source: P.A. 98-649, eff. 6-16-14.)

 
    (20 ILCS 1605/21.10 new)
    Sec. 21.10. Scratch-off for homelessness prevention 
programs.
    (a)  The Department shall offer a special instant 
scratch-off game to fund homelessness prevention programs. The 
game shall commence on July 1, 2019 or as soon thereafter, at 
the discretion of the Director, as is reasonably practical. The 
operation of the game shall be governed by this Act and any 
rules adopted by the Department.  If any provision of this 
Section is inconsistent with any other provision of this Act, 
then this Section governs.
    (b) The Homelessness Prevention Revenue Fund is created as 
a special fund in the State treasury. The net revenue from the 
scratch-off game to fund homelessness prevention programs 
shall be deposited into the Homelessness Prevention Revenue 
Fund. Subject to appropriation, moneys in the Fund shall be 
used by the Department of Human Services solely for grants to 
homelessness prevention and assistance projects under the 
Homelessness Prevention Act.
    As used in this subsection, "net revenue" means the total 
amount for which tickets have been sold less the sum of the 
amount paid out in the prizes and the actual administrative 
expenses of the Department solely related to the scratch-off 
game under this Section.
    (c) During the time that tickets are sold for the 
scratch-off game to fund homelessness prevention programs, the 
Department shall not unreasonably diminish the efforts devoted 
to marketing any other instant scratch-off lottery game.
    (d) The Department may adopt any rules necessary to 
implement and administer the provisions of this Section. 
    (e) Nothing in this Section shall be construed to affect 
any revenue that any Homelessness Prevention line item receives 
through the General Revenue Fund or the Illinois Affordable 
Housing Trust Fund. 

 
    Section 10. The State Finance Act is amended by adding 
Section 5.886 as follows:
 
    (30 ILCS 105/5.886 new)
    Sec. 5.886. The Homelessness Prevention Revenue Fund.
 
    Section 95. No acceleration or delay. Where this Act makes 
changes in a statute that is represented in this Act by text 
that is not yet or no longer in effect (for example, a Section 
represented by multiple versions), the use of that text does 
not accelerate or delay the taking effect of (i) the changes 
made by this Act or (ii) provisions derived from any other 
Public Act.
 

    Section 99. Effective date. This Act takes effect upon 
becoming law.


Effective Date:  8/24/2018