HB0618 Engrossed LRB096 08827 AMC 18961 b

1     AN ACT concerning State government.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Lottery Law is amended by changing
5 Sections 2, 7.2, 9, 19, 20, and 20.1 and by adding Section 20.2
6 as follows:
 
7     (20 ILCS 1605/2)  (from Ch. 120, par. 1152)
8     Sec. 2. This Act is enacted to implement and establish
9 within the State a lottery to be operated by the State, the
10 entire net proceeds of which are to be used for the support of
11 the State's Lottery Supports Schools Fund Common School Fund,
12 except as provided in Sections 21.2, 21.5, 21.6, 21.7, and
13 21.8.
14 (Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05;
15 95-331, eff. 8-21-07; 95-673, eff. 10-11-07; 95-674, eff.
16 10-11-07; 95-876, eff. 8-21-08.)
 
17     (20 ILCS 1605/7.2)  (from Ch. 120, par. 1157.2)
18     Sec. 7.2. The rules and regulations of the Department may
19 include, but shall not be limited to, the following:
20     (1) The types of lotteries to be conducted;
21     (2) The price, or prices, of tickets or shares in the
22 lottery;

 

 

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1     (3) The numbers and sizes of the prizes on the winning
2 tickets or shares;
3     (4) The manner of selecting the winning tickets or shares;
4     (5) The manner of payment of prizes to the holders of
5 winning tickets or shares;
6     (6) The frequency of the drawing or selections of winning
7 tickets or shares, without limitation;
8     (7) Without limit to number, the type or types of locations
9 at which tickets or shares may be sold;
10     (8) The method to be used in selling tickets or shares;
11     (9) The manner and amount of compensation, if any, to be
12 paid licensed sales agents necessary to provide for the
13 adequate availability of tickets or shares to prospective
14 buyers and for the convenience of the public;
15     (10) The apportionment of the total revenues accruing from
16 the sale of lottery tickets or shares and from all other
17 sources among (i) the payment of prizes to the holders of
18 winning tickets or shares, (ii) the payment of costs incurred
19 in the operation and administration of the lottery, including
20 the expenses of the Department and the costs resulting from any
21 contract or contracts entered into for promotional,
22 advertising or operational services or for the purchase or
23 lease of lottery equipment and materials, and (iii) for monthly
24 transfers to the Lottery Supports Schools Fund Common School
25 Fund. The net revenues accruing from the sale of lottery
26 tickets shall be determined by deducting from total revenues

 

 

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1 the payments required by paragraphs (i) and (ii) of this
2 subsection.
3     (11) Such other matters necessary or desirable for the
4 efficient and economical operation and administration of the
5 lottery and for the convenience of the purchasers of tickets or
6 shares and the holders of winning tickets or shares.
7     Any rules and regulations of the Department with respect to
8 monthly transfers to the Lottery Supports Schools Fund Common
9 School Fund are subject to Section 21.2.
10 (Source: P.A. 84-1128.)
 
11     (20 ILCS 1605/9)  (from Ch. 120, par. 1159)
12     Sec. 9. The Superintendent, as administrative head of the
13 Division, shall direct and supervise all its administrative and
14 technical activities and shall report to the Director. In
15 addition to the duties imposed upon him elsewhere in this Act,
16 it shall be the Superintendent's duty:
17     a. To supervise and administer the operation of the lottery
18 in accordance with the provisions of this Act or such rules and
19 regulations of the Department adopted thereunder.
20     b. To attend meetings of the Board or to appoint a designee
21 to attend in his stead.
22     c. To employ and direct such personnel in accord with the
23 Personnel Code, as may be necessary to carry out the purposes
24 of this Act. The Superintendent may, subject to the approval of
25 the Director, use the services, personnel, or facilities of the

 

 

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1 Department. In addition, the Superintendent may by agreement
2 secure such services as he or she may deem necessary from any
3 other department, agency, or unit of the State government, and
4 may employ and compensate such consultants and technical
5 assistants as may be required and is otherwise permitted by
6 law.
7     d. To license, in accordance with the provisions of
8 Sections 10 and 10.1 of this Act and the rules and regulations
9 of the Department adopted thereunder, as agents to sell lottery
10 tickets such persons as in his opinion will best serve the
11 public convenience and promote the sale of tickets or shares.
12 The Superintendent may require a bond from every licensed
13 agent, in such amount as provided in the rules and regulations
14 of the Department. Every licensed agent shall prominently
15 display his license, or a copy thereof, as provided in the
16 rules and regulations of the Department.
17     e. To suspend or revoke any license issued pursuant to this
18 Act or the rules and regulations promulgated by the Department
19 thereunder.
20     f. To confer regularly as necessary or desirable and not
21 less than once every month with the Lottery Control Board on
22 the operation and administration of the Lottery; to make
23 available for inspection by the Board or any member of the
24 Board, upon request, all books, records, files, and other
25 information and documents of his office; to advise the Board
26 and recommend such rules and regulations and such other matters

 

 

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1 as he deems necessary and advisable to improve the operation
2 and administration of the lottery.
3     g. To enter into contracts for the operation of the
4 lottery, or any part thereof, and into contracts for the
5 promotion of the lottery on behalf of the Department with any
6 person, firm or corporation, to perform any of the functions
7 provided for in this Act or the rules and regulations
8 promulgated thereunder. The Department shall not expend State
9 funds on a contractual basis for such functions unless those
10 functions and expenditures are expressly authorized by the
11 General Assembly.
12     h. To enter into an agreement or agreements with the
13 management of state lotteries operated pursuant to the laws of
14 other states for the purpose of creating and operating a
15 multi-state lottery game wherein a separate and distinct prize
16 pool would be combined to award larger prizes to the public
17 than could be offered by the several state lotteries,
18 individually. No tickets or shares offered in connection with a
19 multi-state lottery game shall be sold within the State of
20 Illinois, except those offered by and through the Department.
21 No such agreement shall purport to pledge the full faith and
22 credit of the State of Illinois, nor shall the Department
23 expend State funds on a contractual basis in connection with
24 any such game unless such expenditures are expressly authorized
25 by the General Assembly, provided, however, that in the event
26 of error or omission by the Illinois State Lottery in the

 

 

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1 conduct of the game, as determined by the multi-state game
2 directors, the Department shall be authorized to pay a prize
3 winner or winners the lesser of a disputed prize or $1,000,000,
4 any such payment to be made solely from funds appropriated for
5 game prize purposes. The Department shall be authorized to
6 share in the ordinary operating expenses of any such
7 multi-state lottery game, from funds appropriated by the
8 General Assembly, and in the event the multi-state game control
9 offices are physically located within the State of Illinois,
10 the Department is authorized to advance start-up operating
11 costs not to exceed $150,000, subject to proportionate
12 reimbursement of such costs by the other participating state
13 lotteries. The Department shall be authorized to share
14 proportionately in the costs of establishing a liability
15 reserve fund from funds appropriated by the General Assembly.
16 The Department is authorized to transfer prize award funds
17 attributable to Illinois sales of multi-state lottery game
18 tickets to the multi-state control office, or its designated
19 depository, for deposit to such game pool account or accounts
20 as may be established by the multi-state game directors, the
21 records of which account or accounts shall be available at all
22 times for inspection in an audit by the Auditor General of
23 Illinois and any other auditors pursuant to the laws of the
24 State of Illinois. No multi-state game prize awarded to a
25 nonresident of Illinois, with respect to a ticket or share
26 purchased in a state other than the State of Illinois, shall be

 

 

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1 deemed to be a prize awarded under this Act for the purpose of
2 taxation under the Illinois Income Tax Act. All of the net
3 revenues accruing from the sale of multi-state lottery tickets
4 or shares shall be transferred into the Lottery Supports
5 Schools Fund Common School Fund pursuant to Section 7.2. The
6 Department shall promulgate such rules as may be appropriate to
7 implement the provisions of this Section.
8     i. To make a continuous study and investigation of (1) the
9 operation and the administration of similar laws which may be
10 in effect in other states or countries, (2) any literature on
11 the subject which from time to time may be published or
12 available, (3) any Federal laws which may affect the operation
13 of the lottery, and (4) the reaction of Illinois citizens to
14 existing and potential features of the lottery with a view to
15 recommending or effecting changes that will tend to serve the
16 purposes of this Act.
17     j. To report monthly to the State Treasurer and the Lottery
18 Control Board a full and complete statement of lottery
19 revenues, prize disbursements and other expenses for each month
20 and the amounts to be transferred to the Common School Fund
21 pursuant to Section 7.2 or such other funds as are otherwise
22 authorized by Section 21.2 of this Act, and to make an annual
23 report, which shall include a full and complete statement of
24 lottery revenues, prize disbursements and other expenses, to
25 the Governor and the Board. All reports required by this
26 subsection shall be public and copies of all such reports shall

 

 

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1 be sent to the Speaker of the House, the President of the
2 Senate, and the minority leaders of both houses.
3 (Source: P.A. 94-776, eff. 5-19-06.)
 
4     (20 ILCS 1605/19)  (from Ch. 120, par. 1169)
5     Sec. 19. Period for claiming prizes; unclaimed prizes. The
6 Division shall establish an appropriate period for the claiming
7 of prizes for each lottery game offered. Each claim period
8 shall be stated in game rules and written play instructions
9 issued by the Superintendent in accordance with Section 7.1 of
10 this Act. Written play instructions shall be made available to
11 all players through sales agents licensed to sell game tickets
12 or shares. Prizes for lottery games which involve the purchase
13 of a physical lottery ticket may be claimed only by
14 presentation of a valid winning lottery ticket that matches
15 validation records on file with the Lottery; no claim may be
16 honored which is based on the assertion that the ticket was
17 lost or stolen. No lottery ticket which has been altered,
18 mutilated, or fails to pass validation tests shall be deemed to
19 be a winning ticket.
20     If no claim is made for the money within the established
21 claim period, the prize may be included in the prize pool of
22 such special drawing or drawings as the Division may, from time
23 to time, designate. Unclaimed multi-state game prize money may
24 be included in the multi-state prize pool for such special
25 drawing or drawings as the multi-state game directors may, from

 

 

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1 time to time, designate. Any bonuses offered by the Department
2 to sales agents who sell winning tickets or shares shall be
3 payable to such agents regardless of whether or not the prize
4 money on the ticket or share is claimed, provided that the
5 agent can be identified as the vendor of the winning ticket or
6 share, and that the winning ticket or share was sold on or
7 after January 1, 1984. All unclaimed prize money not included
8 in the prize pool of a special drawing shall be transferred to
9 the Lottery Supports Schools Fund Common School Fund.
10 (Source: P.A. 94-776, eff. 5-19-06.)
 
11     (20 ILCS 1605/20)  (from Ch. 120, par. 1170)
12     Sec. 20. State Lottery Fund.
13     (a) There is created in the State Treasury a special fund
14 to be known as the "State Lottery Fund". Such fund shall
15 consist of all revenues received from (1) the sale of lottery
16 tickets or shares, (net of commissions, fees representing those
17 expenses that are directly proportionate to the sale of tickets
18 or shares at the agent location, and prizes of less than $600
19 which have been validly paid at the agent level), (2)
20 application fees, and (3) all other sources including moneys
21 credited or transferred thereto from any other fund or source
22 pursuant to law. Interest earnings of the State Lottery Fund
23 shall be credited to the Lottery Supports Schools Fund Common
24 School Fund.
25     (b) The receipt and distribution of moneys under Section

 

 

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1 21.5 of this Act shall be in accordance with Section 21.5.
2     (c) The receipt and distribution of moneys under Section
3 21.6 of this Act shall be in accordance with Section 21.6.
4     (d) The receipt and distribution of moneys under Section
5 21.7 of this Act shall be in accordance with Section 21.7.
6     (e) The receipt and distribution of moneys under Section
7 21.8 of this Act shall be in accordance with Section 21.8.
8 (Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05;
9 95-331, eff. 8-21-07; 95-673, eff. 10-11-07; 95-674, eff.
10 10-11-07; 95-876, eff. 8-21-08.)
 
11     (20 ILCS 1605/20.1)  (from Ch. 120, par. 1170.1)
12     Sec. 20.1. Department account.
13     (a) The Department is authorized to pay validated prizes up
14 to $25,000 from funds held by the Department in an account
15 separate and apart from all public moneys of the State. Moneys
16 in this account shall be administered by the Director
17 exclusively for the purposes of issuing payments to prize
18 winners authorized by this Section. Moneys in this account
19 shall be deposited by the Department into the Public
20 Treasurers' Investment Pool established under Section 17 of the
21 State Treasurer Act. The Department shall submit vouchers from
22 time to time as needed for reimbursement of this account from
23 moneys appropriated for prizes from the State Lottery Fund.
24 Investment income earned from this account shall be deposited
25 monthly by the Department into the Lottery Supports Schools

 

 

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1 Fund Common School Fund. The Department shall file quarterly
2 fiscal reports specifying the activity of this account as
3 required under Section 16 of the State Comptroller Act, and
4 shall file quarterly with the General Assembly, the Auditor
5 General, the Comptroller, and the State Treasurer a report
6 indicating the costs associated with this activity.
7     (b) The Department is authorized to enter into an
8 interagency agreement with the Office of the Comptroller or any
9 other State agency to establish responsibilities, duties, and
10 procedures for complying with the Comptroller's Offset System
11 under Section 10.05 of the State Comptroller Act. All federal
12 and State tax reporting and withholding requirements relating
13 to prize winners under this Section shall be the responsibility
14 of the Department. Moneys from this account may not be used to
15 pay amounts to deferred prize winners. Moneys may not be
16 transferred from the State Lottery Fund to this account for
17 payment of prizes under this Section until procedures are
18 implemented to comply with the Comptroller's Offset System and
19 sufficient internal controls are in place to validate prizes.
20 (Source: P.A. 87-1197; 88-676, eff. 12-14-94.)
 
21     (20 ILCS 1605/20.2 new)
22     Sec. 20.2. Lottery Supports Schools Fund. There is created
23 a Fund to be known as the Lottery Supports Schools Fund, which
24 is a non-appropriated trust fund held outside of the State
25 treasury. The Fund shall consist of moneys paid into it by the

 

 

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1 Division as provided in this Law. The Division shall certify
2 each month to the State Board of Education the proportion of
3 lottery sales in each school district in relation to statewide
4 lottery sales. The moneys in the Lottery Supports Schools Fund
5 must be distributed monthly by the State Board of Education to
6 each school district based upon that school district's portion
7 of statewide lottery sales.
 
8     Section 10. The School Code is amended by adding Section
9 2-3.148 as follows:
 
10     (105 ILCS 5/2-3.148 new)
11     Sec. 2-3.148. Distributions from the Lottery Supports
12 Schools Fund. The State Board of Education shall make
13 distributions from the Lottery Supports Schools Fund as
14 provided in Section 20.2 of the Illinois Lottery Law; however,
15 the State Board of Education shall not take into account these
16 distributions when computing State aid under Section 18-8.05 of
17 this Code.
 
18     Section 99. Effective date. This Act takes effect upon
19 becoming law.