Rep. Michael J. Zalewski

Filed: 6/27/2017





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2    AMENDMENT NO. ______. Amend Senate Bill 1531 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Lottery Law is amended by changing
5Sections 2, 9.1, and 20 and by adding Sections 21.10 and 21.11
6as follows:
7    (20 ILCS 1605/2)  (from Ch. 120, par. 1152)
8    Sec. 2. This Act is enacted to implement and establish
9within the State a lottery to be conducted by the State through
10the Department. The entire net proceeds of the Lottery are to
11be used for the support of the State's Common School Fund,
12except as provided in subsection (o) of Section 9.1 and
13Sections 21.5, 21.6, 21.7, 21.8, and 21.9, 21.10, and 21.11.
14The General Assembly finds that it is in the public interest
15for the Department to conduct the functions of the Lottery with
16the assistance of a private manager under a management



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1agreement overseen by the Department. The Department shall be
2accountable to the General Assembly and the people of the State
3through a comprehensive system of regulation, audits, reports,
4and enduring operational oversight. The Department's ongoing
5conduct of the Lottery through a management agreement with a
6private manager shall act to promote and ensure the integrity,
7security, honesty, and fairness of the Lottery's operation and
8administration. It is the intent of the General Assembly that
9the Department shall conduct the Lottery with the assistance of
10a private manager under a management agreement at all times in
11a manner consistent with 18 U.S.C. 1307(a)(1), 1307(b)(1),
13(Source: P.A. 98-649, eff. 6-16-14; 99-933, eff. 1-27-17.)
14    (20 ILCS 1605/9.1)
15    Sec. 9.1. Private manager and management agreement.
16    (a) As used in this Section:
17    "Offeror" means a person or group of persons that responds
18to a request for qualifications under this Section.
19    "Request for qualifications" means all materials and
20documents prepared by the Department to solicit the following
21from offerors:
22        (1) Statements of qualifications.
23        (2) Proposals to enter into a management agreement,
24    including the identity of any prospective vendor or vendors
25    that the offeror intends to initially engage to assist the



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1    offeror in performing its obligations under the management
2    agreement.
3    "Final offer" means the last proposal submitted by an
4offeror in response to the request for qualifications,
5including the identity of any prospective vendor or vendors
6that the offeror intends to initially engage to assist the
7offeror in performing its obligations under the management
9    "Final offeror" means the offeror ultimately selected by
10the Governor to be the private manager for the Lottery under
11subsection (h) of this Section.
12    (b) By September 15, 2010, the Governor shall select a
13private manager for the total management of the Lottery with
14integrated functions, such as lottery game design, supply of
15goods and services, and advertising and as specified in this
17    (c) Pursuant to the terms of this subsection, the
18Department shall endeavor to expeditiously terminate the
19existing contracts in support of the Lottery in effect on the
20effective date of this amendatory Act of the 96th General
21Assembly in connection with the selection of the private
22manager. As part of its obligation to terminate these contracts
23and select the private manager, the Department shall establish
24a mutually agreeable timetable to transfer the functions of
25existing contractors to the private manager so that existing
26Lottery operations are not materially diminished or impaired



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1during the transition. To that end, the Department shall do the
3        (1) where such contracts contain a provision
4    authorizing termination upon notice, the Department shall
5    provide notice of termination to occur upon the mutually
6    agreed timetable for transfer of functions;
7        (2) upon the expiration of any initial term or renewal
8    term of the current Lottery contracts, the Department shall
9    not renew such contract for a term extending beyond the
10    mutually agreed timetable for transfer of functions; or
11        (3) in the event any current contract provides for
12    termination of that contract upon the implementation of a
13    contract with the private manager, the Department shall
14    perform all necessary actions to terminate the contract on
15    the date that coincides with the mutually agreed timetable
16    for transfer of functions.
17    If the contracts to support the current operation of the
18Lottery in effect on the effective date of this amendatory Act
19of the 96th General Assembly are not subject to termination as
20provided for in this subsection (c), then the Department may
21include a provision in the contract with the private manager
22specifying a mutually agreeable methodology for incorporation.
23    (c-5) The Department shall include provisions in the
24management agreement whereby the private manager shall, for a
25fee, and pursuant to a contract negotiated with the Department
26(the "Employee Use Contract"), utilize the services of current



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1Department employees to assist in the administration and
2operation of the Lottery. The Department shall be the employer
3of all such bargaining unit employees assigned to perform such
4work for the private manager, and such employees shall be State
5employees, as defined by the Personnel Code. Department
6employees shall operate under the same employment policies,
7rules, regulations, and procedures, as other employees of the
8Department. In addition, neither historical representation
9rights under the Illinois Public Labor Relations Act, nor
10existing collective bargaining agreements, shall be disturbed
11by the management agreement with the private manager for the
12management of the Lottery.
13    (d) The management agreement with the private manager shall
14include all of the following:
15        (1) A term not to exceed 10 years, including any
16    renewals.
17        (2) A provision specifying that the Department:
18            (A) shall exercise actual control over all
19        significant business decisions;
20            (A-5) has the authority to direct or countermand
21        operating decisions by the private manager at any time;
22            (B) has ready access at any time to information
23        regarding Lottery operations;
24            (C) has the right to demand and receive information
25        from the private manager concerning any aspect of the
26        Lottery operations at any time; and



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1            (D) retains ownership of all trade names,
2        trademarks, and intellectual property associated with
3        the Lottery.
4        (3) A provision imposing an affirmative duty on the
5    private manager to provide the Department with material
6    information and with any information the private manager
7    reasonably believes the Department would want to know to
8    enable the Department to conduct the Lottery.
9        (4) A provision requiring the private manager to
10    provide the Department with advance notice of any operating
11    decision that bears significantly on the public interest,
12    including, but not limited to, decisions on the kinds of
13    games to be offered to the public and decisions affecting
14    the relative risk and reward of the games being offered, so
15    the Department has a reasonable opportunity to evaluate and
16    countermand that decision.
17        (5) A provision providing for compensation of the
18    private manager that may consist of, among other things, a
19    fee for services and a performance based bonus as
20    consideration for managing the Lottery, including terms
21    that may provide the private manager with an increase in
22    compensation if Lottery revenues grow by a specified
23    percentage in a given year.
24        (6) (Blank).
25        (7) A provision requiring the deposit of all Lottery
26    proceeds to be deposited into the State Lottery Fund except



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1    as otherwise provided in Section 20 of this Act.
2        (8) A provision requiring the private manager to locate
3    its principal office within the State.
4        (8-5) A provision encouraging that at least 20% of the
5    cost of contracts entered into for goods and services by
6    the private manager in connection with its management of
7    the Lottery, other than contracts with sales agents or
8    technical advisors, be awarded to businesses that are a
9    minority owned business, a female owned business, or a
10    business owned by a person with disability, as those terms
11    are defined in the Business Enterprise for Minorities,
12    Females, and Persons with Disabilities Act.
13        (9) A requirement that so long as the private manager
14    complies with all the conditions of the agreement under the
15    oversight of the Department, the private manager shall have
16    the following duties and obligations with respect to the
17    management of the Lottery:
18            (A) The right to use equipment and other assets
19        used in the operation of the Lottery.
20            (B) The rights and obligations under contracts
21        with retailers and vendors.
22            (C) The implementation of a comprehensive security
23        program by the private manager.
24            (D) The implementation of a comprehensive system
25        of internal audits.
26            (E) The implementation of a program by the private



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1        manager to curb compulsive gambling by persons playing
2        the Lottery.
3            (F) A system for determining (i) the type of
4        Lottery games, (ii) the method of selecting winning
5        tickets, (iii) the manner of payment of prizes to
6        holders of winning tickets, (iv) the frequency of
7        drawings of winning tickets, (v) the method to be used
8        in selling tickets, (vi) a system for verifying the
9        validity of tickets claimed to be winning tickets,
10        (vii) the basis upon which retailer commissions are
11        established by the manager, and (viii) minimum
12        payouts.
13        (10) A requirement that advertising and promotion must
14    be consistent with Section 7.8a of this Act.
15        (11) A requirement that the private manager market the
16    Lottery to those residents who are new, infrequent, or
17    lapsed players of the Lottery, especially those who are
18    most likely to make regular purchases on the Internet as
19    permitted by law.
20        (12) A code of ethics for the private manager's
21    officers and employees.
22        (13) A requirement that the Department monitor and
23    oversee the private manager's practices and take action
24    that the Department considers appropriate to ensure that
25    the private manager is in compliance with the terms of the
26    management agreement, while allowing the manager, unless



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1    specifically prohibited by law or the management
2    agreement, to negotiate and sign its own contracts with
3    vendors.
4        (14) A provision requiring the private manager to
5    periodically file, at least on an annual basis, appropriate
6    financial statements in a form and manner acceptable to the
7    Department.
8        (15) Cash reserves requirements.
9        (16) Procedural requirements for obtaining the prior
10    approval of the Department when a management agreement or
11    an interest in a management agreement is sold, assigned,
12    transferred, or pledged as collateral to secure financing.
13        (17) Grounds for the termination of the management
14    agreement by the Department or the private manager.
15        (18) Procedures for amendment of the agreement.
16        (19) A provision requiring the private manager to
17    engage in an open and competitive bidding process for any
18    procurement having a cost in excess of $50,000 that is not
19    a part of the private manager's final offer. The process
20    shall favor the selection of a vendor deemed to have
21    submitted a proposal that provides the Lottery with the
22    best overall value. The process shall not be subject to the
23    provisions of the Illinois Procurement Code, unless
24    specifically required by the management agreement.
25        (20) The transition of rights and obligations,
26    including any associated equipment or other assets used in



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1    the operation of the Lottery, from the manager to any
2    successor manager of the lottery, including the
3    Department, following the termination of or foreclosure
4    upon the management agreement.
5        (21) Right of use of copyrights, trademarks, and
6    service marks held by the Department in the name of the
7    State. The agreement must provide that any use of them by
8    the manager shall only be for the purpose of fulfilling its
9    obligations under the management agreement during the term
10    of the agreement.
11        (22) The disclosure of any information requested by the
12    Department to enable it to comply with the reporting
13    requirements and information requests provided for under
14    subsection (p) of this Section.
15    (e) Notwithstanding any other law to the contrary, the
16Department shall select a private manager through a competitive
17request for qualifications process consistent with Section
1820-35 of the Illinois Procurement Code, which shall take into
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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1        (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
11advisors with significant experience in financial services or
12the management, operation, and procurement of goods, services,
13and equipment for a government-run lottery to assist in the
14preparation of the terms of the request for qualifications and
15selection of the private manager. Any prospective advisor
16seeking to provide services under this subsection (f) shall
17disclose any material business or financial relationship
18during the past 3 years with any potential offeror, or with a
19contractor or subcontractor presently providing goods,
20services, or equipment to the Department to support the
21Lottery. The Department shall evaluate the material business or
22financial relationship of each prospective advisor. The
23Department shall not select any prospective advisor with a
24substantial business or financial relationship that the
25Department deems to impair the objectivity of the services to
26be provided by the prospective advisor. During the course of



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1the advisor's engagement by the Department, and for a period of
2one year thereafter, the advisor shall not enter into any
3business or financial relationship with any offeror or any
4vendor identified to assist an offeror in performing its
5obligations under the management agreement. Any advisor
6retained by the Department shall be disqualified from being an
7offeror. The Department shall not include terms in the request
8for qualifications that provide a material advantage whether
9directly or indirectly to any potential offeror, or any
10contractor or subcontractor presently providing goods,
11services, or equipment to the Department to support the
12Lottery, including terms contained in previous responses to
13requests for proposals or qualifications submitted to
14Illinois, another State or foreign government when those terms
15are uniquely associated with a particular potential offeror,
16contractor, or subcontractor. The request for proposals
17offered by the Department on December 22, 2008 as
18"LOT08GAMESYS" and reference number "22016176" is declared
20    (g) The Department shall select at least 2 offerors as
21finalists to potentially serve as the private manager no later
22than August 9, 2010. Upon making preliminary selections, the
23Department shall schedule a public hearing on the finalists'
24proposals and provide public notice of the hearing at least 7
25calendar days before the hearing. The notice must include all
26of the following:



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1        (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
9sufficient time for each finalist to present and explain its
10proposal to the Department and the Governor or the Governor's
11designee, including an opportunity to respond to questions
12posed by the Department, Governor, or designee and (ii) allow
13the public and non-selected offerors to comment on the
14presentations. The Governor or a designee shall attend the
15public hearing. After the public hearing, the Department shall
16have 14 calendar days to recommend to the Governor whether a
17management agreement should be entered into with a particular
18finalist. After reviewing the Department's recommendation, the
19Governor may accept or reject the Department's recommendation,
20and shall select a final offeror as the private manager by
21publication of a notice in the Illinois Procurement Bulletin on
22or before September 15, 2010. The Governor shall include in the
23notice a detailed explanation and the reasons why the final
24offeror is superior to other offerors and will provide
25management services in a manner that best achieves the
26objectives of this Section. The Governor shall also sign the



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1management agreement with the private manager.
2    (i) Any action to contest the private manager selected by
3the Governor under this Section must be brought within 7
4calendar days after the publication of the notice of the
5designation 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
8manager manages the Lottery in accordance with provisions of
9this Act, a Lottery conducted by the State, and the State shall
10not be authorized to sell or transfer the Lottery to a third
12    (k) Any tangible personal property used exclusively in
13connection with the lottery that is owned by the Department and
14leased to the private manager shall be owned by the Department
15in the name of the State and shall be considered to be public
16property devoted to an essential public and governmental
18    (l) The Department may exercise any of its powers under
19this Section or any other law as necessary or desirable for the
20execution of the Department's powers under this Section.
21    (m) Neither this Section nor any management agreement
22entered into under this Section prohibits the General Assembly
23from authorizing forms of gambling that are not in direct
24competition with the Lottery.
25    (n) The private manager shall be subject to a complete
26investigation in the third, seventh, and tenth years of the



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1agreement (if the agreement is for a 10-year term) by the
2Department in cooperation with the Auditor General to determine
3whether the private manager has complied with this Section and
4the management agreement. The private manager shall bear the
5cost of an investigation or reinvestigation of the private
6manager under this subsection.
7    (o) The powers conferred by this Section are in addition
8and supplemental to the powers conferred by any other law. If
9any other law or rule is inconsistent with this Section,
10including, but not limited to, provisions of the Illinois
11Procurement Code, then this Section controls as to any
12management agreement entered into under this Section. This
13Section and any rules adopted under this Section contain full
14and complete authority for a management agreement between the
15Department and a private manager. No law, procedure,
16proceeding, publication, notice, consent, approval, order, or
17act by the Department or any other officer, Department, agency,
18or instrumentality of the State or any political subdivision is
19required for the Department to enter into a management
20agreement under this Section. This Section contains full and
21complete authority for the Department to approve any contracts
22entered into by a private manager with a vendor providing
23goods, services, or both goods and services to the private
24manager under the terms of the management agreement, including
25subcontractors of such vendors.
26    Upon receipt of a written request from the Chief



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1Procurement Officer, the Department shall provide to the Chief
2Procurement Officer a complete and un-redacted copy of the
3management agreement or any contract that is subject to the
4Department's approval authority under this subsection (o). The
5Department shall provide a copy of the agreement or contract to
6the Chief Procurement Officer in the time specified by the
7Chief Procurement Officer in his or her written request, but no
8later than 5 business days after the request is received by the
9Department. The Chief Procurement Officer must retain any
10portions of the management agreement or of any contract
11designated by the Department as confidential, proprietary, or
12trade secret information in complete confidence pursuant to
13subsection (g) of Section 7 of the Freedom of Information Act.
14The Department shall also provide the Chief Procurement Officer
15with reasonable advance written notice of any contract that is
16pending Department approval.
17    Notwithstanding any other provision of this Section to the
18contrary, the Chief Procurement Officer shall adopt
19administrative rules, including emergency rules, to establish
20a procurement process to select a successor private manager if
21a private management agreement has been terminated. The
22selection process shall at a minimum take into account the
23criteria set forth in items (1) through (4) of subsection (e)
24of this Section and may include provisions consistent with
25subsections (f), (g), (h), and (i) of this Section. The Chief
26Procurement Officer shall also implement and administer the



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1adopted selection process upon the termination of a private
2management agreement. The Department, after the Chief
3Procurement Officer certifies that the procurement process has
4been followed in accordance with the rules adopted under this
5subsection (o), shall select a final offeror as the private
6manager and sign the management agreement with the private
8    Except as provided in Sections 21.5, 21.6, 21.7, 21.8, and
921.9, 21.10, and 21.11, the Department shall distribute all
10proceeds of lottery tickets and shares sold in the following
11priority and manner:
12        (1) The payment of prizes and retailer bonuses.
13        (2) The payment of costs incurred in the operation and
14    administration of the Lottery, including the payment of
15    sums due to the private manager under the management
16    agreement with the Department.
17        (3) On the last day of each month or as soon thereafter
18    as possible, the State Comptroller shall direct and the
19    State Treasurer shall transfer from the State Lottery Fund
20    to the Common School Fund an amount that is equal to the
21    proceeds transferred in the corresponding month of fiscal
22    year 2009, as adjusted for inflation, to the Common School
23    Fund.
24        (4) On or before the last day of each fiscal year,
25    deposit any remaining proceeds, subject to payments under
26    items (1), (2), and (3) into the Capital Projects Fund each



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1    fiscal year.
2    (p) The Department shall be subject to the following
3reporting and information request requirements:
4        (1) the Department shall submit written quarterly
5    reports to the Governor and the General Assembly on the
6    activities and actions of the private manager selected
7    under this Section;
8        (2) upon request of the Chief Procurement Officer, the
9    Department shall promptly produce information related to
10    the procurement activities of the Department and the
11    private manager requested by the Chief Procurement
12    Officer; the Chief Procurement Officer must retain
13    confidential, proprietary, or trade secret information
14    designated by the Department in complete confidence
15    pursuant to subsection (g) of Section 7 of the Freedom of
16    Information Act; and
17        (3) at least 30 days prior to the beginning of the
18    Department's fiscal year, the Department shall prepare an
19    annual written report on the activities of the private
20    manager selected under this Section and deliver that report
21    to the Governor and General Assembly.
22(Source: P.A. 98-463, eff. 8-16-13; 98-649, eff. 6-16-14;
2399-933, eff. 1-27-17.)
24    (20 ILCS 1605/20)  (from Ch. 120, par. 1170)
25    Sec. 20. State Lottery Fund.



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1    (a) There is created in the State Treasury a special fund
2to be known as the "State Lottery Fund". Such fund shall
3consist of all revenues received from (1) the sale of lottery
4tickets or shares, (net of commissions, fees representing those
5expenses that are directly proportionate to the sale of tickets
6or shares at the agent location, and prizes of less than $600
7which have been validly paid at the agent level), (2)
8application fees, and (3) all other sources including moneys
9credited or transferred thereto from any other fund or source
10pursuant to law. Interest earnings of the State Lottery Fund
11shall be credited to the Common School Fund.
12    (b) The receipt and distribution of moneys under Section
1321.5 of this Act shall be in accordance with Section 21.5.
14    (c) The receipt and distribution of moneys under Section
1521.6 of this Act shall be in accordance with Section 21.6.
16    (d) The receipt and distribution of moneys under Section
1721.7 of this Act shall be in accordance with Section 21.7.
18    (e) The receipt and distribution of moneys under Section
1921.8 of this Act shall be in accordance with Section 21.8.
20    (f) The receipt and distribution of moneys under Section
2121.9 of this Act shall be in accordance with Section 21.9.
22    (g) The receipt and distribution of moneys under Section
2321.10 of this Act shall be in accordance with Section 21.10.
24    (h) The receipt and distribution of moneys under Section
2521.11 of this Act shall be in accordance with Section 21.11.
26(Source: P.A. 98-649, eff. 6-16-14.)



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1    (20 ILCS 1605/21.10 new)
2    Sec. 21.10. Scratch-off for State police memorials.
3    (a) The Department shall offer a State police memorial
4special instant scratch-off game. The game shall commence on
5January 1, 2018 or as soon thereafter, at the discretion of the
6Director, as is reasonably practical. The operation of the game
7shall be governed by this Act and any rules adopted by the
8Department. If any provision of this Section is inconsistent
9with any other provision of this Act, then this Section
11    (b) The net revenue from the State police memorial special
12instant scratch-off game shall be deposited into the Criminal
13Justice Information Projects Fund and distributed equally, as
14soon as practical but at least on a monthly basis, to the
15Chicago Police Memorial Foundation Fund, the Police Memorial
16Committee Fund, and the Illinois State Police Memorial Fund.
17Moneys transferred to the funds under this Section shall be
18used, subject to appropriation, to fund grants for building and
19maintaining memorials and parks; holding annual memorial
20commemorations; giving scholarships to children of officers
21killed or catastrophically injured in the line of duty, or
22those interested in pursuing a career in law enforcement; and
23providing financial assistance to police officers and their
24families when a police officer is killed or injured in the line
25of duty.



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1    Moneys collected from the State police memorial special
2instant scratch-off game shall be used only as a supplemental
3financial resource and shall not supplant existing moneys that
4may be appropriated under Section 9.1 of the Illinois Criminal
5Justice Information Act.
6    For purposes of this subsection, "net revenue" means the
7total amount for which tickets have been sold less the sum of
8the amount paid out in the prizes and the actual administrative
9expenses of the Department solely related to the scratch-off
10game under this Section.
11    (c) During the time that tickets are sold for the State
12police memorial special instant scratch-off game, the
13Department shall not unreasonably diminish the efforts devoted
14to marketing any other instant scratch-off lottery game.
15    (d) The Department may adopt any rules necessary to
16implement and administer the provisions of this Section.
17    (20 ILCS 1605/21.11 new)
18    Sec. 21.11. Scratch-off for Catholic Charities of the
19Archdiocese of Chicago's Basic Human Needs Services.
20    (a) The Department shall offer a special instant
21scratch-off game to benefit the Catholic Charities of the
22Archdiocese of Chicago's Basic Human Needs Services. The game
23shall commence on January 1, 2018 or as soon thereafter, at the
24discretion of the Director, as is reasonably practical. The
25operation of the game shall be governed by this Act and any



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1rules adopted by the Department. If any provision of this
2Section is inconsistent with any other provision of this Act,
3then this Section governs.
4    (b) The Basic Human Needs Revenue Fund is created as a
5special fund in the State treasury. The net revenue from the
6scratch-off game to benefit the Catholic Charities of the
7Archdiocese of Chicago's Basic Human Needs Services shall be
8deposited into the Basic Human Needs Revenue Fund. Moneys
9deposited into the Basic Human Needs Revenue Fund under this
10Section shall be used, subject to appropriation, by the
11Department of Human Services to fund grants to the Catholic
12Charities of the Archdiocese of Chicago's Basic Human Needs
14    For purposes of this subsection, "net revenue" means the
15total amount for which tickets have been sold less the sum of
16the amount paid out in the prizes and the actual administrative
17expenses of the Department solely related to the scratch-off
18game under this Section.
19    (c) During the time that tickets are sold for the
20scratch-off game to benefit the Catholic Charities of the
21Archdiocese of Chicago's Basic Human Needs Services, the
22Department shall not unreasonably diminish the efforts devoted
23to marketing any other instant scratch-off lottery game.
24    (d) The Department may adopt any rules necessary to
25implement and administer the provisions of this Section.



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1    Section 10. The Illinois Criminal Justice Information Act
2is amended by changing Section 9.1 as follows:
3    (20 ILCS 3930/9.1)
4    Sec. 9.1. Criminal Justice Information Projects Fund. The
5Criminal Justice Information Projects Fund is hereby created as
6a special fund in the State Treasury. Grants and other moneys
7obtained by the Authority from governmental entities (other
8than the federal government), private sources, and
9not-for-profit organizations for use in investigating criminal
10justice issues or undertaking other criminal justice
11information projects, or pursuant to the uses identified in
12Section 21.10 of the Illinois Lottery Law, shall be deposited
13into the Fund. Moneys in the Fund may be used by the Authority,
14subject to appropriation, for undertaking such projects and for
15the operating and other expenses of the Authority incidental to
16those projects. Any interest earned on moneys in the Fund must
17be deposited into the Fund.
18(Source: P.A. 88-538.)
19    Section 15. The State Finance Act is amended by adding
20Section 5.878 as follows:
21    (30 ILCS 105/5.878 new)
22    Sec. 5.878. The Basic Human Needs Revenue Fund.



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1    Section 20. If and only if House Bill 479 of the 100th
2General Assembly becomes law in the form in which it passed the
3Senate on May 31, 2017, then the State Finance Act is amended
4by adding Section 5.879 as follows:
5    (30 ILCS 105/5.879 new)
6    Sec. 5.879. The Mental Health Services Fund.
7    Section 25. If and only if House Bill 479 of the 100th
8General Assembly becomes law in the form in which it passed the
9Senate on May 31, 2017, then the Department of Healthcare and
10Family Services Law of the Civil Administrative Code of
11Illinois is amended by adding Section 2205-17 as follows:
12    (20 ILCS 2205/2205-17 new)
13    Sec. 2205-17. The Mental Health Services Fund. The Mental
14Health Services Fund is created as a special fund in the State
15treasury. From appropriations to the Department of Healthcare
16and Family Services from the Fund, the Department of Healthcare
17and Family Services shall make grants to support mental health
18and addiction services in the State. Any federal Medicaid
19matching funds received by the Department of Healthcare and
20Family Services for the grants made under this Section shall be
21deposited into the Fund.
22    Section 30. If and only if House Bill 479 of the 100th



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1General Assembly becomes law in the form in which it passed the
2Senate on May 31, 2017, then the Fantasy Sports Contest Act is
3amended by changing Sections 1-20 and 1-55 as follows:
4    (100HB0479sam001, Sec. 1-20)
5    Sec. 1-20. Licensing.
6    (a) No interactive fantasy sports operator shall
7administer, manage, or otherwise make available an interactive
8fantasy sports platform to persons located in the State unless
9licensed by the Board under this Act.
10    (b) A qualified person may apply to the Board for an
11interactive fantasy sports operator license to conduct
12interactive fantasy sports contests as provided in this Act.
13The application shall be made on forms provided by the Board.
14The burden is upon each applicant to demonstrate suitability
15for licensure. Each interactive fantasy sports operator shall
16be licensed by the Board. The Board may issue a license for a
17period of up to 2 years or, in the case of interactive fantasy
18sports operators with annual interactive fantasy sports gross
19revenues less than $100,000, for up to 3 years.
20    (b-5) An applicant is not qualified for licensure as an
21interactive fantasy sports operator unless the applicant has a
22physical nexus to the State of Illinois.
23    (c) Each person seeking and possessing a license as an
24interactive fantasy sports operator shall submit to a
25background investigation conducted by the Board with the



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1assistance of the State Police or other law enforcement. To the
2extent that the corporate structure of the applicant allows,
3the background investigation shall include any or all of the
4following as the Board deems appropriate or as provided by
5rule: (i) each beneficiary of a trust, (ii) each partner of a
6partnership, (iii) each member of a limited liability company,
7(iv) each director and officer of a publicly or non-publicly
8held corporation, (v) each stockholder of a non-publicly held
9corporation, (vi) each stockholder of 5% or more of a publicly
10held corporation, or (vii) each stockholder of 5% or more in a
11parent or subsidiary corporation.
12    (d) Each person seeking and possessing a license as an
13interactive fantasy sports operator shall disclose the
14identity of every person, association, trust, corporation, or
15limited liability company having a greater than 1% direct or
16indirect pecuniary interest in the interactive fantasy sports
17operator for which the license is sought. If the disclosed
18entity is a trust, the application shall disclose the names and
19addresses of the beneficiaries; if a corporation, the names and
20addresses of all stockholders and directors; if a limited
21liability company, the names and addresses of all members; or
22if a partnership, the names and addresses of all partners, both
23general and limited.
24    (e) All information, records, interviews, reports,
25statements, memoranda, or other data supplied to or used by the
26Board in the course of its review or investigation of an



10000SB1531ham002- 27 -LRB100 05772 AMC 27755 a

1application for a license or a renewal under this Act shall be
2privileged and strictly confidential and shall be used only for
3the purpose of evaluating an applicant for a license or a
4renewal. The information, records, interviews, reports,
5statements, memoranda, or other data shall not be admissible as
6evidence nor discoverable in any action of any kind in any
7court or before any tribunal, board, agency, or person, except
8for any action deemed necessary by the Board.
9    (f) No person may be licensed as an interactive fantasy
10sports operator if that person has been found by the Board to:
11        (1) have a background, including a criminal record,
12    reputation, habits, social or business associations, or
13    prior activities, that poses a threat to the public
14    interests of the State or to the security and integrity of
15    interactive fantasy sports contests;
16        (2) create or enhance the dangers of unsuitable,
17    unfair, or illegal practices, methods, and activities in
18    the conduct of interactive fantasy sports contests; or
19        (3) present questionable business practices and
20    financial arrangements incidental to the conduct of
21    interactive fantasy sports contests.
22    (f-5) A person seeking and possessing a license as an
23interactive fantasy sports operator may not simultaneously
24hold a license as a licensed sales agent under the Illinois
25Lottery Law, an owners licensee under the Riverboat Gambling
26Act, an organization licensee under the Illinois Horse Racing



10000SB1531ham002- 28 -LRB100 05772 AMC 27755 a

1Act of 1975, a licensed establishment, licensed fraternal
2establishment, licensed veterans establishment, or licensed
3truck stop establishment under the Video Gaming Act, or an
4Internet gaming licensee under the Internet Gaming Act.
5    (g) Any applicant for a license under this Act has the
6burden of proving his or her qualifications to the satisfaction
7of the Board. The Board may adopt rules to establish additional
8qualifications and requirements to preserve the integrity and
9security of interactive fantasy sports contests in this State.
10    (h) An interactive fantasy sports operator that has been
11operating in Illinois for at least 6 months on December 23,
122015 may operate in Illinois until a final decision is rendered
13on the application for an interactive fantasy sports operator
15    (i) The Board, by rule, shall establish a process for
16license renewal.
17    (j) The Board shall publish a list of all interactive
18fantasy sports operators licensed in this State under this
19Section on the Board's website for public use.
20(Source: 100HB0479sam001.)
21    (100HB0479sam001, Sec. 1-55)
22    Sec. 1-55. Disposition of taxes. The Board shall deposit
23pay into the Education Assistance Fund all taxes imposed by
24this Act, any interest and penalties imposed by the Board
25relating to those taxes, all penalties levied and collected by



10000SB1531ham002- 29 -LRB100 05772 AMC 27755 a

1the Board, and the appropriate funds, cash, or prizes forfeited
2from interactive fantasy sports contests into the Mental Health
3Services Fund.
4(Source: 100HB0479sam001.)
5    Section 35. If and only if House Bill 479 of the 100th
6General Assembly becomes law in the form in which it passed the
7Senate on May 31, 2017, then the Internet Gaming Act is amended
8by changing Section 5-30 as follows:
9    (100HB0479sam001, Sec. 5-30)
10    Sec. 5-30. Certification of Internet gaming vendors. The
11Division is authorized to certify Internet gaming vendors to
12provide goods, software, or services to Internet gaming
13licensees. Certification by the Division of an Internet gaming
14vendor shall be for a period of 5 years and shall be renewable
15thereafter for an additional 5 years based on a determination
16by the Division that the Internet gaming vendor continues to
17meet all the requirements of this Act and the Division's rules.
18The Division shall have the sole and exclusive jurisdiction to
19determine what persons, corporations, partnerships, or other
20entities require certification under this Act and the rules
21adopted under this Act.
22    A person, corporation, partnership, or other entity may
23apply to the Division to become an Internet gaming vendor as
24provided in this Act and the rules of the Division. The



10000SB1531ham002- 30 -LRB100 05772 AMC 27755 a

1application shall be made on forms provided by the Division and
2shall contain such information as the Division prescribes,
3including, but not limited to, detailed information regarding
4the ownership and management of the applicant, detailed
5personal information regarding the applicant, financial
6information regarding the applicant, and the gaming history and
7experience of the applicant in the United States and other
8jurisdictions. Each application shall be accompanied by a
9non-refundable application fee, the amount of which shall be
10determined by the Division, but shall not exceed $250,000. An
11incomplete application shall be cause for denial of
12certification. No certification shall be granted to an
13applicant for certification as an Internet gaming vendor if the
14applicant who has accepted wagers via the Internet in
15contravention of this Act or in contravention of any law of the
16United States in the 5-year period preceding the date of
18    All information, records, interviews, reports, statements,
19memoranda, or other data supplied to or used by the Division in
20the course of its review or investigation of an application for
21certification as an Internet gaming vendor is strictly
22confidential and shall only be used for the purpose of
23evaluating an applicant for a certification. Notwithstanding
24any law to the contrary, such information is subject to Section
255.1 and subsection (d) of Section 6 of the Riverboat Gambling



10000SB1531ham002- 31 -LRB100 05772 AMC 27755 a

1    Any person, association, corporation, partnership, or
2entity who (i) knowingly makes materially false statements in
3order to obtain certification as an Internet gaming vendor or
4(ii) violates any other provision of this Act or any rule
5adopted under this Act is guilty of a Class B misdemeanor for a
6first offense and is guilty of a Class A misdemeanor for a
7second or subsequent offense. In the case of an association,
8corporation, partnership, or entity, imprisonment may be
9imposed upon its officers who knowingly participate in the
11    The Board shall adopt rules to ensure that all licensees
12are treated and all licensees act in a non-discriminatory
13manner and develop processes and penalties to enforce those
15(Source: 100HB0479sam001.)
16    Section 97. Severability. The provisions of this Act are
17severable under Section 1.31 of the Statute on Statutes.
18    Section 99. Effective date. This Section and Sections 5,
1910, 15, and 97 of this Act take effect upon becoming law;
20Sections 20, 25, 30, and 35 of this Act take effect upon
21becoming law or on the date House Bill 479 of the 100th General
22Assembly takes effect, whichever is later.".