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1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Civil Administrative Code of Illinois is
5amended by changing Sections 5-20 and 5-175 as follows:
 
6    (20 ILCS 5/5-20)  (was 20 ILCS 5/4)
7    Sec. 5-20. Heads of departments. Each department shall have
8an officer as its head who shall be known as director or
9secretary and who shall, subject to the provisions of the Civil
10Administrative Code of Illinois, execute the powers and
11discharge the duties vested by law in his or her respective
12department.
13    The following officers are hereby created:
14    Director of Aging, for the Department on Aging.
15    Director of Agriculture, for the Department of
16Agriculture.
17    Director of Central Management Services, for the
18Department of Central Management Services.
19    Director of Children and Family Services, for the
20Department of Children and Family Services.
21    Director of Commerce and Economic Opportunity, for the
22Department of Commerce and Economic Opportunity.
23    Director of Corrections, for the Department of

 

 

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1Corrections.
2    Director of the Illinois Emergency Management Agency, for
3the Illinois Emergency Management Agency.
4    Director of Employment Security, for the Department of
5Employment Security.
6    Secretary of Financial and Professional Regulation, for
7the Department of Financial and Professional Regulation.
8    Director of Healthcare and Family Services, for the
9Department of Healthcare and Family Services.
10    Director of Human Rights, for the Department of Human
11Rights.
12    Secretary of Human Services, for the Department of Human
13Services.
14    Director of the Illinois Power Agency, for the Illinois
15Power Agency.
16    Director of Juvenile Justice, for the Department of
17Juvenile Justice.
18    Director of Labor, for the Department of Labor.
19    Director of the Lottery, for the Department of the Lottery.
20    Director of Natural Resources, for the Department of
21Natural Resources.
22    Director of Public Health, for the Department of Public
23Health.
24    Director of Revenue, for the Department of Revenue.
25    Director of State Police, for the Department of State
26Police.

 

 

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1    Secretary of Transportation, for the Department of
2Transportation.
3    Director of Veterans' Affairs, for the Department of
4Veterans' Affairs.
5(Source: P.A. 95-331, eff. 8-21-07; 95-481, eff. 8-28-07;
695-777, eff. 8-4-08; 96-328, eff. 8-11-09.)
 
7    (20 ILCS 5/5-175)  (was 20 ILCS 5/5.12)
8    Sec. 5-175. In the Department of Revenue. Assistant
9Director of Revenue; and State Lottery Superintendent.
10(Source: P.A. 91-239, eff. 1-1-00.)
 
11    Section 10. The Illinois Lottery Law is amended by changing
12Sections 3, 4, 5, 6, 7.1, 7.6, 7.11, 7.12, 9, 9.1, 10, 10.1,
1310.1a, 10.2, 10.6, 10.7, 10.8, 12, 13, 14, 14.3, 19, 20.1, 21,
1421.5, 21.6, 21.7, 21.8, 26, and 27 and by adding Section 29 as
15follows:
 
16    (20 ILCS 1605/3)  (from Ch. 120, par. 1153)
17    Sec. 3. For the purposes of this Act:
18    a. "Lottery" or "State Lottery" means the lottery or
19lotteries established and operated pursuant to this Act.
20    b. "Board" means the Lottery Control Board created by this
21Act.
22    c. "Department" means the Department of the Lottery
23Revenue.

 

 

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1    d. (Blank). "Director" means the Director of Revenue.
2    e. "Chairman" means the Chairman of the Lottery Control
3Board.
4    f. "Multi-state game directors" means such persons,
5including the Superintendent, as may be designated by an
6agreement between the Department Division and one or more
7additional lotteries operated under the laws of another state
8or states.
9    g. (Blank). "Division" means the Division of the State
10Lottery of the Department of Revenue.
11    h. "Superintendent" means the Superintendent of the
12Department Division of the State Lottery of the Department of
13Revenue.
14    i. "Management agreement" means an agreement or contract
15between the Department on behalf of the State with a private
16manager, as an independent contractor, whereby the private
17manager provides management services to the Lottery in exchange
18for compensation that may consist of, among other things, a fee
19for services and a performance-based bonus of no more than 5%
20of Lottery profits so long as the Department continues to
21exercise actual control over all significant business
22decisions made by the private manager as set forth in Section
239.1.
24    j. "Person" means any individual, firm, association, joint
25venture, partnership, estate, trust, syndicate, fiduciary,
26corporation, or other legal entity, group, or combination.

 

 

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1    k. "Private manager" means a person that provides
2management services to the Lottery on behalf of the Department
3under a management agreement.
4    l. "Profits" means total revenues accruing from the sale of
5lottery tickets or shares and related proceeds minus (1) the
6payment of prizes and retailer bonuses and (2) the payment of
7costs incurred in the operation and administration of the
8lottery, excluding costs of services directly rendered by a
9private manager.
10    m. "Chief Procurement Officer" means the Chief Procurement
11Officer provided for under paragraph (4) of subsection (a) of
12Section 10-20 of the Illinois Procurement Code.
13(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
14eff. 12-23-09.)
 
15    (20 ILCS 1605/4)  (from Ch. 120, par. 1154)
16    Sec. 4. The Department of the Lottery is established to
17implement and regulate the State Lottery in the manner provided
18in this Act.
19    In accordance with Executive Order No. 9 (2003), the
20Division of the State Lottery is established within the
21Department of Revenue. Unless otherwise provided by law, the
22Division of the State Lottery shall be subject to and governed
23by all of the laws and rules applicable to the Department.
24(Source: P.A. 94-776, eff. 5-19-06.)
 

 

 

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1    (20 ILCS 1605/5)  (from Ch. 120, par. 1155)
2    Sec. 5. (a) The Department Division shall be under the
3supervision and direction of a Superintendent, who shall be a
4person qualified by training and experience to perform the
5duties required by this Act. The Superintendent shall be
6appointed by the Governor, by and with the advice and consent
7of the Senate. The term of office of the Superintendent shall
8expire on the third Monday of January in odd numbered years
9provided that he or she shall hold office until a successor is
10appointed and qualified. The annual salary of the
11Superintendent is $142,000.
12    Any vacancy occurring in the office of the Superintendent
13shall be filled in the same manner as the original appointment.
14In case of a vacancy during the recess of the Senate, the
15Governor shall make a temporary appointment until the next
16meeting of the Senate, when the Governor shall nominate some
17person to fill the office, and any person so nominated who is
18confirmed by the Senate shall hold office during the remainder
19of the term and until his or her successor is appointed and
20qualified.
21    During the absence or inability to act of the
22Superintendent, or in the case of a vacancy in the office of
23Superintendent until a successor is appointed and qualified,
24the Governor may designate some person as Acting Superintendent
25of the Lottery to execute the powers and discharge the duties
26vested by law in that office. A person who is designated as an

 

 

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1Acting Superintendent shall not continue in office for more
2than 60 calendar days unless the Governor files a message with
3the Secretary of the Senate nominating that person to fill the
4office. After 60 calendar days, the office is considered vacant
5and shall be filled only under this Section. No person who has
6been appointed by the Governor to serve as Acting
7Superintendent shall, except at the Senate's request, be
8designated again as an Acting Superintendent at the same
9session of that Senate, subject to the provisions of this
10Section. A person appointed as an Acting Superintendent is not
11required to meet the requirements of paragraph (1) of
12subsection (b) of this Section. In no case may the Governor
13designate a person to serve as Acting Superintendent if that
14person has prior to the effective date of this amendatory Act
15of the 97th General Assembly exercised any of the duties and
16functions of the office of Superintendent without having been
17nominated by the Governor to serve as Superintendent.
18    (b) The Superintendent shall devote his or her entire time
19and attention to the duties of the office and shall not be
20engaged in any other profession or occupation. The
21Superintendent shall receive such salary as shall be provided
22by law.
23    The Superintendent shall:
24        (1) be qualified by training and experience to direct a
25    lottery, including, at a minimum, 5 years of senior
26    executive-level experience in the successful advertising,

 

 

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1    marketing, and selling of consumer products, 4 years of
2    successful experience directing a lottery on behalf of a
3    governmental entity, or 5 years of successful senior-level
4    management experience at a lottery on behalf of a
5    governmental entity;
6        (2) have significant and meaningful management and
7    regulatory experience; and
8        (3) have a good reputation, particularly as a person of
9    honesty, independence, and integrity.
10    The Superintendent shall not during his or her term of
11appointment: become a candidate for any elective office; hold
12any other elected or appointed public office; be actively
13involved in the affairs of any political party or political
14organization; advocate for the appointment of another person to
15an appointed or elected office or position; or actively
16participate in any campaign for any elective office. The
17Superintendent may be appointed to serve on a governmental
18advisory or board study commission or as otherwise expressly
19authorized by law.
20    (c) No person shall perform the duties and functions of the
21Superintendent, or otherwise exercise the authority of the
22Superintendent, unless the same shall have been appointed by
23the Governor pursuant to this Section.
24(Source: P.A. 94-776, eff. 5-19-06.)
 
25    (20 ILCS 1605/6)  (from Ch. 120, par. 1156)

 

 

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1    Sec. 6. There is hereby created an independent board to be
2known as the Lottery Control Board, consisting of 5 members,
3all of whom shall be citizens of the United States and
4residents of this State and shall be appointed by the Governor
5with the advice and consent of the Senate. No more than 3 of
6the 5 members shall be members of the same political party. A
7chairman of the Board shall be chosen annually from the
8membership of the Board by a majority of the members of the
9Board at the first meeting of the Board each fiscal year.
10    Initial members shall be appointed to the Board by the
11Governor as follows: one member to serve until July 1, 1974,
12and until his successor is appointed and qualified; 2 members
13to serve until July 1, 1975, and until their successors are
14appointed and qualified; 2 members to serve until July 1, 1976,
15and until their successors are appointed and qualified. As
16terms of members so appointed expire, their successors shall be
17appointed for terms to expire the first day in July 3 years
18thereafter, and until their successors are appointed and
19qualified.
20    Any vacancy in the Board occurring for any reason other
21than expiration of term, shall be filled for the unexpired term
22in the same manner as the original appointment.
23    Any member of the Board may be removed by the Governor for
24neglect of duty, misfeasance, malfeasance, or nonfeasance in
25office.
26    Board members shall receive as compensation for their

 

 

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1services $100 for each day they are in attendance at any
2official board meeting, but in no event shall members receive
3more than $1,200 per year. They shall receive no other
4compensation for their services, but shall be reimbursed for
5necessary traveling and other reasonable expenses incurred in
6the performance of their official duties. Each member shall
7make a full financial disclosure upon appointment.
8    The Board shall hold at least one meeting each quarter of
9the fiscal year. In addition, special meetings may be called by
10the Chairman, any 2 Board members, or the Superintendent
11Director of the Department, upon delivery of 72 hours' written
12notice to the office of each member. All Board meetings shall
13be open to the public pursuant to the Open Meetings Act.
14    Three members of the Board shall constitute a quorum, and 3
15votes shall be required for any final determination by the
16Board. The Board shall keep a complete and accurate record of
17all its meetings.
18(Source: P.A. 84-1128.)
 
19    (20 ILCS 1605/7.1)  (from Ch. 120, par. 1157.1)
20    Sec. 7.1. The Department shall promulgate such rules and
21regulations governing the establishment and operation of a
22State lottery as it deems necessary to carry out the purposes
23of this Act. Such rules and regulations shall be subject to the
24provisions of The Illinois Administrative Procedure Act. The
25Department Division shall issue written game rules, play

 

 

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1instructions, directives, operations manuals, brochures, or
2any other publications necessary to conduct specific games, as
3authorized by rule by the Department. Any written game rules,
4play instructions, directives, operations manuals, brochures,
5or other game publications issued by the Department Division
6that relate to a specific lottery game shall be maintained as a
7public record in the Department's Division's principal office,
8and made available for public inspection and copying but shall
9be exempt from the rulemaking procedures of the Illinois
10Administrative Procedure Act. However, when such written
11materials contain any policy of general applicability, the
12Department Division shall formulate and adopt such policy as a
13rule in accordance with the provisions of the Illinois
14Administrative Procedure Act. In addition, the Department
15Division shall publish each January in the Illinois Register a
16list of all game-specific rules, play instructions,
17directives, operations manuals, brochures, or other
18game-specific publications issued by the Department Division
19during the previous year and instructions concerning how the
20public may obtain copies of these materials from the Department
21Division.
22(Source: P.A. 94-776, eff. 5-19-06.)
 
23    (20 ILCS 1605/7.6)  (from Ch. 120, par. 1157.6)
24    Sec. 7.6. The Board shall advise and make recommendations
25to the Superintendent or the Director regarding the functions

 

 

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1and operations of the State Lottery. A copy of all such
2recommendations shall also be forwarded to the Governor, the
3Attorney General, the Speaker of the House, the President of
4the Senate and the minority leaders of both houses.
5(Source: P.A. 94-776, eff. 5-19-06.)
 
6    (20 ILCS 1605/7.11)  (from Ch. 120, par. 1157.11)
7    Sec. 7.11. The Department Division may establish and
8collect nominal charges for promotional products ("premiums")
9and other promotional materials produced or acquired by the
10Department Division as part of its advertising and promotion
11activities. Such premiums or other promotional materials may be
12sold to individuals, government agencies and not-for-profit
13organizations, but not to for-profit enterprises for the
14purpose of resale. Other State agencies shall be charged no
15more than the cost to the Department Division of the premium or
16promotional material. All proceeds from the sale of premiums or
17promotional materials shall be deposited in the State Lottery
18Fund in the State Treasury.
19(Source: P.A. 94-776, eff. 5-19-06.)
 
20    (20 ILCS 1605/7.12)
21    Sec. 7.12. Internet pilot program. The General Assembly
22finds that:
23        (1) the consumer market in Illinois has changed since
24    the creation of the Illinois State Lottery in 1974;

 

 

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1        (2) the Internet has become an integral part of
2    everyday life for a significant number of Illinois
3    residents not only in regards to their professional life,
4    but also in regards to personal business and communication;
5    and
6        (3) the current practices of selling lottery tickets
7    does not appeal to the new form of market participants who
8    prefer to make purchases on the internet at their own
9    convenience.
10    It is the intent of the General Assembly to create an
11Internet pilot program for the sale of lottery tickets to
12capture this new form of market participant.
13    The Department shall create a pilot program that allows an
14individual 18 years of age or older to purchase lottery tickets
15or shares on the Internet without using a Lottery retailer with
16on-line status, as those terms are defined by rule. The
17Department shall restrict the sale of lottery tickets on the
18Internet to transactions initiated and received or otherwise
19made exclusively within the State of Illinois. The Department
20shall adopt rules necessary for the administration of this
21program. These rules shall include requirements for marketing
22of the Lottery to infrequent players. The provisions of this
23Act and the rules adopted under this Act shall apply to the
24sale of lottery tickets or shares under this program.
25    Before beginning the pilot program, the Department of the
26Lottery Revenue must submit a request to the United States

 

 

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1Department of Justice for review of the State's plan to
2implement a pilot program for the sale of lottery tickets on
3the Internet and its propriety under federal law. The
4Department shall implement the Internet pilot program only if
5the Department of Justice does not object to the implementation
6of the program within a reasonable period of time after its
7review.
8    The Department is obligated to implement the pilot program
9set forth in this Section and Sections 7.15 and 7.16 only at
10such time, and to such extent, that the Department of Justice
11does not object to the implementation of the program within a
12reasonable period of time after its review. While the Illinois
13Lottery may only offer Lotto and Mega Millions games through
14the pilot program, the Department shall request review from the
15federal Department of Justice for the Illinois Lottery to sell
16lottery tickets on the Internet on behalf of the State of
17Illinois that are not limited to just these games.
18    The Department shall authorize the private manager to
19implement and administer the program pursuant to the management
20agreement entered into under Section 9.1 and in a manner
21consistent with the provisions of this Section. If a private
22manager has not been selected pursuant to Section 9.1 at the
23time the Department is obligated to implement the pilot
24program, then the Department shall not proceed with the pilot
25program until after the selection of the private manager, at
26which time the Department shall authorize the private manager

 

 

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1to implement and administer the program pursuant to the
2management agreement entered into under Section 9.1 and in a
3manner consistent with the provisions of this Section.
4    The pilot program shall last for not less than 36 months,
5but not more than 48 months from the date of its initial
6operation.
7    Nothing in this Section shall be construed as prohibiting
8the Department from implementing and operating a website portal
9whereby individuals who are 18 years of age or older with an
10Illinois mailing address may apply to purchase lottery tickets
11via subscription.
12(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
13eff. 12-23-09.)
 
14    (20 ILCS 1605/9)  (from Ch. 120, par. 1159)
15    Sec. 9. The Superintendent, as administrative head of the
16Department Division, shall direct and supervise all its
17administrative and technical activities and shall report to the
18Director. In addition to the duties imposed upon him elsewhere
19in this Act, it shall be the Superintendent's duty:
20    a. To supervise and administer the operation of the lottery
21in accordance with the provisions of this Act or such rules and
22regulations of the Department adopted thereunder.
23    b. To attend meetings of the Board or to appoint a designee
24to attend in his stead.
25    c. To employ and direct such personnel in accord with the

 

 

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

 

 

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

 

 

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1any such game unless such expenditures are expressly authorized
2by the General Assembly, provided, however, that in the event
3of error or omission by the Illinois State Lottery in the
4conduct of the game, as determined by the multi-state game
5directors, the Department shall be authorized to pay a prize
6winner or winners the lesser of a disputed prize or $1,000,000,
7any such payment to be made solely from funds appropriated for
8game prize purposes. The Department shall be authorized to
9share in the ordinary operating expenses of any such
10multi-state lottery game, from funds appropriated by the
11General Assembly, and in the event the multi-state game control
12offices are physically located within the State of Illinois,
13the Department is authorized to advance start-up operating
14costs not to exceed $150,000, subject to proportionate
15reimbursement of such costs by the other participating state
16lotteries. The Department shall be authorized to share
17proportionately in the costs of establishing a liability
18reserve fund from funds appropriated by the General Assembly.
19The Department is authorized to transfer prize award funds
20attributable to Illinois sales of multi-state lottery game
21tickets to the multi-state control office, or its designated
22depository, for deposit to such game pool account or accounts
23as may be established by the multi-state game directors, the
24records of which account or accounts shall be available at all
25times for inspection in an audit by the Auditor General of
26Illinois and any other auditors pursuant to the laws of the

 

 

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1State of Illinois. No multi-state game prize awarded to a
2nonresident of Illinois, with respect to a ticket or share
3purchased in a state other than the State of Illinois, shall be
4deemed to be a prize awarded under this Act for the purpose of
5taxation under the Illinois Income Tax Act. The Department
6shall promulgate such rules as may be appropriate to implement
7the provisions of this Section.
8    i. To make a continuous study and investigation of (1) the
9operation and the administration of similar laws which may be
10in effect in other states or countries, (2) any literature on
11the subject which from time to time may be published or
12available, (3) any Federal laws which may affect the operation
13of the lottery, and (4) the reaction of Illinois citizens to
14existing and potential features of the lottery with a view to
15recommending or effecting changes that will tend to serve the
16purposes of this Act.
17    j. To report monthly to the State Treasurer and the Lottery
18Control Board a full and complete statement of lottery
19revenues, prize disbursements and other expenses for each month
20and the amounts to be transferred to the Common School Fund
21pursuant to Section 7.2 or such other funds as are otherwise
22authorized by Section 21.2 of this Act, and to make an annual
23report, which shall include a full and complete statement of
24lottery revenues, prize disbursements and other expenses, to
25the Governor and the Board. All reports required by this
26subsection shall be public and copies of all such reports shall

 

 

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1be sent to the Speaker of the House, the President of the
2Senate, and the minority leaders of both houses.
3(Source: P.A. 96-37, eff. 7-13-09.)
 
4    (20 ILCS 1605/9.1)
5    Sec. 9.1. Private manager and management agreement.
6    (a) As used in this Section:
7    "Offeror" means a person or group of persons that responds
8to a request for qualifications under this Section.
9    "Request for qualifications" means all materials and
10documents prepared by the Department to solicit the following
11from offerors:
12        (1) Statements of qualifications.
13        (2) Proposals to enter into a management agreement,
14    including the identity of any prospective vendor or vendors
15    that the offeror intends to initially engage to assist the
16    offeror in performing its obligations under the management
17    agreement.
18    "Final offer" means the last proposal submitted by an
19offeror in response to the request for qualifications,
20including the identity of any prospective vendor or vendors
21that the offeror intends to initially engage to assist the
22offeror in performing its obligations under the management
23agreement.
24    "Final offeror" means the offeror ultimately selected by
25the Governor to be the private manager for the Lottery under

 

 

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1subsection (h) of this Section.
2    (b) By September 15, 2010, the Governor shall select a
3private manager for the total management of the Lottery with
4integrated functions, such as lottery game design, supply of
5goods and services, and advertising and as specified in this
6Section.
7    (c) Pursuant to the terms of this subsection, the
8Department shall endeavor to expeditiously terminate the
9existing contracts in support of the Lottery in effect on the
10effective date of this amendatory Act of the 96th General
11Assembly in connection with the selection of the private
12manager. As part of its obligation to terminate these contracts
13and select the private manager, the Department shall establish
14a mutually agreeable timetable to transfer the functions of
15existing contractors to the private manager so that existing
16Lottery operations are not materially diminished or impaired
17during the transition. To that end, the Department shall do the
18following:
19        (1) where such contracts contain a provision
20    authorizing termination upon notice, the Department shall
21    provide notice of termination to occur upon the mutually
22    agreed timetable for transfer of functions;
23        (2) upon the expiration of any initial term or renewal
24    term of the current Lottery contracts, the Department shall
25    not renew such contract for a term extending beyond the
26    mutually agreed timetable for transfer of functions; or

 

 

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1        (3) in the event any current contract provides for
2    termination of that contract upon the implementation of a
3    contract with the private manager, the Department shall
4    perform all necessary actions to terminate the contract on
5    the date that coincides with the mutually agreed timetable
6    for transfer of functions.
7    If the contracts to support the current operation of the
8Lottery in effect on the effective date of this amendatory Act
9of the 96th General Assembly are not subject to termination as
10provided for in this subsection (c), then the Department may
11include a provision in the contract with the private manager
12specifying a mutually agreeable methodology for incorporation.
13    (c-5) The Department shall include provisions in the
14management agreement whereby the private manager shall, for a
15fee, and pursuant to a contract negotiated with the Department
16(the "Employee Use Contract"), utilize the services of current
17Department employees to assist in the administration and
18operation of the Lottery. The Department shall be the employer
19of all such bargaining unit employees assigned to perform such
20work for the private manager, and such employees shall be State
21employees, as defined by the Personnel Code. Department
22employees shall operate under the same employment policies,
23rules, regulations, and procedures, as other employees of the
24Department. In addition, neither historical representation
25rights under the Illinois Public Labor Relations Act, nor
26existing collective bargaining agreements, shall be disturbed

 

 

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1by the management agreement with the private manager for the
2management of the Lottery.
3    (d) The management agreement with the private manager shall
4include all of the following:
5        (1) A term not to exceed 10 years, including any
6    renewals.
7        (2) A provision specifying that the Department:
8            (A) shall exercise actual control over all
9        significant business decisions;
10            (A-5) has the authority to direct or countermand
11        operating decisions by the private manager at any time;
12            (B) has ready access at any time to information
13        regarding Lottery operations;
14            (C) has the right to demand and receive information
15        from the private manager concerning any aspect of the
16        Lottery operations at any time; and
17            (D) retains ownership of all trade names,
18        trademarks, and intellectual property associated with
19        the Lottery.
20        (3) A provision imposing an affirmative duty on the
21    private manager to provide the Department with material
22    information and with any information the private manager
23    reasonably believes the Department would want to know to
24    enable the Department to conduct the Lottery.
25        (4) A provision requiring the private manager to
26    provide the Department with advance notice of any operating

 

 

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1    decision that bears significantly on the public interest,
2    including, but not limited to, decisions on the kinds of
3    games to be offered to the public and decisions affecting
4    the relative risk and reward of the games being offered, so
5    the Department has a reasonable opportunity to evaluate and
6    countermand that decision.
7        (5) A provision providing for compensation of the
8    private manager that may consist of, among other things, a
9    fee for services and a performance based bonus as
10    consideration for managing the Lottery, including terms
11    that may provide the private manager with an increase in
12    compensation if Lottery revenues grow by a specified
13    percentage in a given year.
14        (6) (Blank).
15        (7) A provision requiring the deposit of all Lottery
16    proceeds to be deposited into the State Lottery Fund except
17    as otherwise provided in Section 20 of this Act.
18        (8) A provision requiring the private manager to locate
19    its principal office within the State.
20        (8-5) A provision encouraging that at least 20% of the
21    cost of contracts entered into for goods and services by
22    the private manager in connection with its management of
23    the Lottery, other than contracts with sales agents or
24    technical advisors, be awarded to businesses that are a
25    minority owned business, a female owned business, or a
26    business owned by a person with disability, as those terms

 

 

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1    are defined in the Business Enterprise for Minorities,
2    Females, and Persons with Disabilities Act.
3        (9) A requirement that so long as the private manager
4    complies with all the conditions of the agreement under the
5    oversight of the Department, the private manager shall have
6    the following duties and obligations with respect to the
7    management of the Lottery:
8            (A) The right to use equipment and other assets
9        used in the operation of the Lottery.
10            (B) The rights and obligations under contracts
11        with retailers and vendors.
12            (C) The implementation of a comprehensive security
13        program by the private manager.
14            (D) The implementation of a comprehensive system
15        of internal audits.
16            (E) The implementation of a program by the private
17        manager to curb compulsive gambling by persons playing
18        the Lottery.
19            (F) A system for determining (i) the type of
20        Lottery games, (ii) the method of selecting winning
21        tickets, (iii) the manner of payment of prizes to
22        holders of winning tickets, (iv) the frequency of
23        drawings of winning tickets, (v) the method to be used
24        in selling tickets, (vi) a system for verifying the
25        validity of tickets claimed to be winning tickets,
26        (vii) the basis upon which retailer commissions are

 

 

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1        established by the manager, and (viii) minimum
2        payouts.
3        (10) A requirement that advertising and promotion must
4    be consistent with Section 7.8a of this Act.
5        (11) A requirement that the private manager market the
6    Lottery to those residents who are new, infrequent, or
7    lapsed players of the Lottery, especially those who are
8    most likely to make regular purchases on the Internet as
9    permitted by law.
10        (12) A code of ethics for the private manager's
11    officers and employees.
12        (13) A requirement that the Department monitor and
13    oversee the private manager's practices and take action
14    that the Department considers appropriate to ensure that
15    the private manager is in compliance with the terms of the
16    management agreement, while allowing the manager, unless
17    specifically prohibited by law or the management
18    agreement, to negotiate and sign its own contracts with
19    vendors.
20        (14) A provision requiring the private manager to
21    periodically file, at least on an annual basis, appropriate
22    financial statements in a form and manner acceptable to the
23    Department.
24        (15) Cash reserves requirements.
25        (16) Procedural requirements for obtaining the prior
26    approval of the Department when a management agreement or

 

 

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1    an interest in a management agreement is sold, assigned,
2    transferred, or pledged as collateral to secure financing.
3        (17) Grounds for the termination of the management
4    agreement by the Department or the private manager.
5        (18) Procedures for amendment of the agreement.
6        (19) A provision requiring the private manager to
7    engage in an open and competitive bidding process for any
8    procurement having a cost in excess of $50,000 that is not
9    a part of the private manager's final offer. The process
10    shall favor the selection of a vendor deemed to have
11    submitted a proposal that provides the Lottery with the
12    best overall value. The process shall not be subject to the
13    provisions of the Illinois Procurement Code, unless
14    specifically required by the management agreement.
15        (20) The transition of rights and obligations,
16    including any associated equipment or other assets used in
17    the operation of the Lottery, from the manager to any
18    successor manager of the lottery, including the
19    Department, following the termination of or foreclosure
20    upon the management agreement.
21        (21) Right of use of copyrights, trademarks, and
22    service marks held by the Department in the name of the
23    State. The agreement must provide that any use of them by
24    the manager shall only be for the purpose of fulfilling its
25    obligations under the management agreement during the term
26    of the agreement.

 

 

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1        (22) The disclosure of any information requested by the
2    Department to enable it to comply with the reporting
3    requirements and information requests provided for under
4    subsection (p) of this Section.
5    (e) Notwithstanding any other law to the contrary, the
6Department shall select a private manager through a competitive
7request for qualifications process consistent with Section
820-35 of the Illinois Procurement Code, which shall take into
9account:
10        (1) the offeror's ability to market the Lottery to
11    those residents who are new, infrequent, or lapsed players
12    of the Lottery, especially those who are most likely to
13    make regular purchases on the Internet;
14        (2) the offeror's ability to address the State's
15    concern with the social effects of gambling on those who
16    can least afford to do so;
17        (3) the offeror's ability to provide the most
18    successful management of the Lottery for the benefit of the
19    people of the State based on current and past business
20    practices or plans of the offeror; and
21        (4) the offeror's poor or inadequate past performance
22    in servicing, equipping, operating or managing a lottery on
23    behalf of Illinois, another State or foreign government and
24    attracting persons who are not currently regular players of
25    a lottery.
26    (f) The Department may retain the services of an advisor or

 

 

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1advisors with significant experience in financial services or
2the management, operation, and procurement of goods, services,
3and equipment for a government-run lottery to assist in the
4preparation of the terms of the request for qualifications and
5selection of the private manager. Any prospective advisor
6seeking to provide services under this subsection (f) shall
7disclose any material business or financial relationship
8during the past 3 years with any potential offeror, or with a
9contractor or subcontractor presently providing goods,
10services, or equipment to the Department to support the
11Lottery. The Department shall evaluate the material business or
12financial relationship of each prospective advisor. The
13Department shall not select any prospective advisor with a
14substantial business or financial relationship that the
15Department deems to impair the objectivity of the services to
16be provided by the prospective advisor. During the course of
17the advisor's engagement by the Department, and for a period of
18one year thereafter, the advisor shall not enter into any
19business or financial relationship with any offeror or any
20vendor identified to assist an offeror in performing its
21obligations under the management agreement. Any advisor
22retained by the Department shall be disqualified from being an
23offeror. The Department shall not include terms in the request
24for qualifications that provide a material advantage whether
25directly or indirectly to any potential offeror, or any
26contractor or subcontractor presently providing goods,

 

 

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1services, or equipment to the Department to support the
2Lottery, including terms contained in previous responses to
3requests for proposals or qualifications submitted to
4Illinois, another State or foreign government when those terms
5are uniquely associated with a particular potential offeror,
6contractor, or subcontractor. The request for proposals
7offered by the Department on December 22, 2008 as
8"LOT08GAMESYS" and reference number "22016176" is declared
9void.
10    (g) The Department shall select at least 2 offerors as
11finalists to potentially serve as the private manager no later
12than August 9, 2010. Upon making preliminary selections, the
13Department shall schedule a public hearing on the finalists'
14proposals and provide public notice of the hearing at least 7
15calendar days before the hearing. The notice must include all
16of the following:
17        (1) The date, time, and place of the hearing.
18        (2) The subject matter of the hearing.
19        (3) A brief description of the management agreement to
20    be awarded.
21        (4) The identity of the offerors that have been
22    selected as finalists to serve as the private manager.
23        (5) The address and telephone number of the Department.
24    (h) At the public hearing, the Department shall (i) provide
25sufficient time for each finalist to present and explain its
26proposal to the Department and the Governor or the Governor's

 

 

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1designee, including an opportunity to respond to questions
2posed by the Department, Governor, or designee and (ii) allow
3the public and non-selected offerors to comment on the
4presentations. The Governor or a designee shall attend the
5public hearing. After the public hearing, the Department shall
6have 14 calendar days to recommend to the Governor whether a
7management agreement should be entered into with a particular
8finalist. After reviewing the Department's recommendation, the
9Governor may accept or reject the Department's recommendation,
10and shall select a final offeror as the private manager by
11publication of a notice in the Illinois Procurement Bulletin on
12or before September 15, 2010. The Governor shall include in the
13notice a detailed explanation and the reasons why the final
14offeror is superior to other offerors and will provide
15management services in a manner that best achieves the
16objectives of this Section. The Governor shall also sign the
17management agreement with the private manager.
18    (i) Any action to contest the private manager selected by
19the Governor under this Section must be brought within 7
20calendar days after the publication of the notice of the
21designation of the private manager as provided in subsection
22(h) of this Section.
23    (j) The Lottery shall remain, for so long as a private
24manager manages the Lottery in accordance with provisions of
25this Act, a Lottery conducted by the State, and the State shall
26not be authorized to sell or transfer the Lottery to a third

 

 

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1party.
2    (k) Any tangible personal property used exclusively in
3connection with the lottery that is owned by the Department and
4leased to the private manager shall be owned by the Department
5in the name of the State and shall be considered to be public
6property devoted to an essential public and governmental
7function.
8    (l) The Department may exercise any of its powers under
9this Section or any other law as necessary or desirable for the
10execution of the Department's powers under this Section.
11    (m) Neither this Section nor any management agreement
12entered into under this Section prohibits the General Assembly
13from authorizing forms of gambling that are not in direct
14competition with the Lottery.
15    (n) The private manager shall be subject to a complete
16investigation in the third, seventh, and tenth years of the
17agreement (if the agreement is for a 10-year term) by the
18Department in cooperation with the Auditor General to determine
19whether the private manager has complied with this Section and
20the management agreement. The private manager shall bear the
21cost of an investigation or reinvestigation of the private
22manager under this subsection.
23    (o) The powers conferred by this Section are in addition
24and supplemental to the powers conferred by any other law. If
25any other law or rule is inconsistent with this Section,
26including, but not limited to, provisions of the Illinois

 

 

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1Procurement Code, then this Section controls as to any
2management agreement entered into under this Section. This
3Section and any rules adopted under this Section contain full
4and complete authority for a management agreement between the
5Department and a private manager. No law, procedure,
6proceeding, publication, notice, consent, approval, order, or
7act by the Department or any other officer, Department, agency,
8or instrumentality of the State or any political subdivision is
9required for the Department to enter into a management
10agreement under this Section. This Section contains full and
11complete authority for the Department to approve any contracts
12entered into by a private manager with a vendor providing
13goods, services, or both goods and services to the private
14manager under the terms of the management agreement, including
15subcontractors of such vendors.
16    Upon receipt of a written request from the Chief
17Procurement Officer, the Department shall provide to the Chief
18Procurement Officer a complete and un-redacted copy of the
19management agreement or any contract that is subject to the
20Department's approval authority under this subsection (o). The
21Department shall provide a copy of the agreement or contract to
22the Chief Procurement Officer in the time specified by the
23Chief Procurement Officer in his or her written request, but no
24later than 5 business days after the request is received by the
25Department. The Chief Procurement Officer must retain any
26portions of the management agreement or of any contract

 

 

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1designated by the Department as confidential, proprietary, or
2trade secret information in complete confidence pursuant to
3subsection (g) of Section 7 of the Freedom of Information Act.
4The Department shall also provide the Chief Procurement Officer
5with reasonable advance written notice of any contract that is
6pending Department approval.
7    Notwithstanding any other provision of this Section to the
8contrary, the Chief Procurement Officer shall adopt
9administrative rules, including emergency rules, to establish
10a procurement process to select a successor private manager if
11a private management agreement has been terminated. The
12selection process shall at a minimum take into account the
13criteria set forth in items (1) through (4) of subsection (e)
14of this Section and may include provisions consistent with
15subsections (f), (g), (h), and (i) of this Section. The Chief
16Procurement Officer shall also implement and administer the
17adopted selection process upon the termination of a private
18management agreement. The Department, after the Chief
19Procurement Officer certifies that the procurement process has
20been followed in accordance with the rules adopted under this
21subsection (o), shall select a final offeror as the private
22manager and sign the management agreement with the private
23manager.
24    Except as provided in Sections 21.2, 21.5, 21.6, 21.7, and
2521.8, the Department shall distribute all proceeds of lottery
26tickets and shares sold in the following priority and manner:

 

 

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1        (1) The payment of prizes and retailer bonuses.
2        (2) The payment of costs incurred in the operation and
3    administration of the Lottery, including the payment of
4    sums due to the private manager under the management
5    agreement with the Department and payment of sums due to
6    the private vendor for lottery tickets and shares sold on
7    the Internet via the pilot program as compensation under
8    its contract with the Department.
9        (3) On the last day of each month or as soon thereafter
10    as possible, the State Comptroller shall direct and the
11    State Treasurer shall transfer from the Lottery Fund to the
12    Common School Fund an amount that is equal to the proceeds
13    transferred in the corresponding month of fiscal year 2009,
14    as adjusted for inflation, to the Common School Fund.
15        (4) On or before the last day of each fiscal year,
16    deposit any remaining proceeds, subject to payments under
17    items (1), (2), and (3) into the Capital Projects Fund each
18    fiscal year.
19    (p) The Department shall be subject to the following
20reporting and information request requirements:
21        (1) the Department shall submit written quarterly
22    reports to the Governor and the General Assembly on the
23    activities and actions of the private manager selected
24    under this Section;
25        (2) upon request of the Chief Procurement Officer, the
26    Department shall promptly produce information related to

 

 

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1    the procurement activities of the Department and the
2    private manager requested by the Chief Procurement
3    Officer; the Chief Procurement Officer must retain
4    confidential, proprietary, or trade secret information
5    designated by the Department in complete confidence
6    pursuant to subsection (g) of Section 7 of the Freedom of
7    Information Act; and
8        (3) at least 30 days prior to the beginning of the
9    Department's fiscal year, the Department shall prepare an
10    annual written report on the activities of the private
11    manager selected under this Section and deliver that report
12    to the Governor and General Assembly.
13(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
14eff. 12-23-09.)
 
15    (20 ILCS 1605/10)  (from Ch. 120, par. 1160)
16    Sec. 10. The Department Division, upon application
17therefor on forms prescribed by the Department Division, and
18upon a determination by the Department Division that the
19applicant meets all of the qualifications specified in this
20Act, shall issue a license as an agent to sell lottery tickets
21or shares. No license as an agent to sell lottery tickets or
22shares shall be issued to any person to engage in business
23exclusively as a lottery sales agent.
24    Before issuing such license the Superintendent shall
25consider (a) the financial responsibility and security of the

 

 

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1person and his business or activity, (b) the accessibility of
2his place of business or activity to the public, (c) the
3sufficiency of existing licenses to serve the public
4convenience, (d) the volume of expected sales, and (e) such
5other factors as he or she may deem appropriate.
6    Until September 1, 1987, the provisions of Sections 2a, 4,
75, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 6, 6a, 6b, 6c, 8, 9,
810, 12 and 13.5 of the Retailers' Occupation Tax Act which are
9not inconsistent with this Act shall apply to the subject
10matter of this Act to the same extent as if such provisions
11were included in this Act. For purposes of this Act, references
12in such incorporated Sections of the Retailers' Occupation Tax
13Act to retailers, sellers or persons engaged in the business of
14selling tangible personal property mean persons engaged in
15selling lottery tickets or shares; references in such
16incorporated Sections to sales of tangible personal property
17mean the selling of lottery tickets or shares; and references
18in such incorporated Sections to certificates of registration
19mean licenses issued under this Act. The provisions of the
20Retailers' Occupation Tax Act as heretofore applied to the
21subject matter of this Act shall not apply with respect to
22tickets sold by or delivered to lottery sales agents on and
23after September 1, 1987, but such provisions shall continue to
24apply with respect to transactions involving the sale and
25delivery of tickets prior to September 1, 1987.
26    All licenses issued by the Department Division under this

 

 

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1Act shall be valid for a period not to exceed 2 years after
2issuance unless sooner revoked, canceled or suspended as in
3this Act provided. No license issued under this Act shall be
4transferable or assignable. Such license shall be
5conspicuously displayed in the place of business conducted by
6the licensee in Illinois where lottery tickets or shares are to
7be sold under such license.
8    For purposes of this Section, the term "person" shall be
9construed to mean and include an individual, association,
10partnership, corporation, club, trust, estate, society,
11company, joint stock company, receiver, trustee, referee, any
12other person acting in a fiduciary or representative capacity
13who is appointed by a court, or any combination of individuals.
14"Person" includes any department, commission, agency or
15instrumentality of the State, including any county, city,
16village, or township and any agency or instrumentality thereof.
17(Source: P.A. 94-776, eff. 5-19-06.)
 
18    (20 ILCS 1605/10.1)  (from Ch. 120, par. 1160.1)
19    Sec. 10.1. The following are ineligible for any license
20under this Act:
21    (a) any person who has been convicted of a felony;
22    (b) any person who is or has been a professional gambler or
23gambling promoter;
24    (c) any person who has engaged in bookmaking or other forms
25of illegal gambling;

 

 

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1    (d) any person who is not of good character and reputation
2in the community in which he resides;
3    (e) any person who has been found guilty of any fraud or
4misrepresentation in any connection;
5    (f) any firm or corporation in which a person defined in
6(a), (b), (c), (d) or (e) has a proprietary, equitable or
7credit interest of 5% or more.
8    (g) any organization in which a person defined in (a), (b),
9(c), (d) or (e) is an officer, director, or managing agent,
10whether compensated or not;
11    (h) any organization in which a person defined in (a), (b),
12(c), (d), or (e) is to participate in the management or sales
13of lottery tickets or shares.
14    However, with respect to persons defined in (a), the
15Department may grant any such person a license under this Act
16when:
17    1) at least 10 years have elapsed since the date when the
18sentence for the most recent such conviction was satisfactorily
19completed;
20    2) the applicant has no history of criminal activity
21subsequent to such conviction;
22    3) the applicant has complied with all conditions of
23probation, conditional discharge, supervision, parole or
24mandatory supervised release; and
25    4) the applicant presents at least 3 letters of
26recommendation from responsible citizens in his community who

 

 

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1personally can attest that the character and attitude of the
2applicant indicate that he is unlikely to commit another crime.
3    The Department Division may revoke, without notice or a
4hearing, the license of any agent who violates this Act or any
5rule or regulation promulgated pursuant to this Act. However,
6if the Department Division does revoke a license without notice
7and an opportunity for a hearing, the Department Division
8shall, by appropriate notice, afford the person whose license
9has been revoked an opportunity for a hearing within 30 days
10after the revocation order has been issued. As a result of any
11such hearing, the Department Division may confirm its action in
12revoking the license, or it may order the restoration of such
13license.
14(Source: P.A. 94-776, eff. 5-19-06.)
 
15    (20 ILCS 1605/10.1a)  (from Ch. 120, par. 1160.1a)
16    Sec. 10.1a. In addition to other grounds specified in this
17Act, the Department Division shall refuse to issue and shall
18suspend the license of any lottery sales agency who fails to
19file a return, or to pay the tax, penalty or interest shown in
20a filed return, or to pay any final assessment of tax, penalty
21or interest, as required by any tax Act administered by the
22Department of Revenue, until such time as the requirements of
23any such tax Act are satisfied, unless the agency is
24contesting, in accordance with the procedures established by
25the appropriate revenue Act, its liability for the tax or the

 

 

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1amount of tax. The Department Division shall affirmatively
2verify the tax status of every sales agency before issuing or
3renewing a license. For purposes of this Section, a sales
4agency shall not be considered delinquent in the payment of a
5tax if the agency (a) has entered into an agreement with the
6Department of Revenue for the payment of all such taxes that
7are due and (b) is in compliance with the agreement.
8(Source: P.A. 94-776, eff. 5-19-06.)
 
9    (20 ILCS 1605/10.2)  (from Ch. 120, par. 1160.2)
10    Sec. 10.2. Application and other fees. Each application
11for a new lottery license must be accompanied by a one-time
12application fee of $50; the Department Division, however, may
13waive the fee for licenses of limited duration as provided by
14Department rule. Each application for renewal of a lottery
15license must be accompanied by a renewal fee of $25. Each
16lottery licensee granted on-line status pursuant to the
17Department's rules must pay a fee of $10 per week as partial
18reimbursement for telecommunications charges incurred by the
19Department in providing access to the lottery's on-line gaming
20system. The Department, by rule, may increase or decrease the
21amount of these fees.
22(Source: P.A. 93-840, eff. 7-30-04; 94-776, eff. 5-19-06.)
 
23    (20 ILCS 1605/10.6)  (from Ch. 120, par. 1160.6)
24    Sec. 10.6. The Department Division shall make an effort to

 

 

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1more directly inform players of the odds of winning prizes.
2This effort shall include, at a minimum, that the Department
3Division require all ticket agents to display a placard stating
4the odds of winning for each game offered by that agent.
5(Source: P.A. 94-776, eff. 5-19-06.)
 
6    (20 ILCS 1605/10.7)
7    Sec. 10.7. Compulsive gambling.
8    (a) Each lottery sales agent shall post a statement
9regarding obtaining assistance with gambling problems and
10including a toll-free "800" telephone number providing crisis
11counseling and referral services to families experiencing
12difficulty as a result of problem or compulsive gambling. The
13text of the statement shall be determined by rule by the
14Department of Human Services, shall be no more than one
15sentence in length, and shall be posted on the placard required
16under Section 10.6. The signs shall be provided by the
17Department of Human Services.
18    (b) The Department Division shall print a statement
19regarding obtaining assistance with gambling problems, the
20text of which shall be determined by rule by the Department of
21Human Services, on all paper stock it provides to the general
22public.
23    (c) The Department Division shall print a statement of no
24more than one sentence in length regarding obtaining assistance
25with gambling problems and including a toll-free "800" number

 

 

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1providing crisis counseling and referral services to families
2experiencing difficulty as a result of problem or compulsive
3gambling on the back of all lottery tickets.
4(Source: P.A. 94-776, eff. 5-19-06.)
 
5    (20 ILCS 1605/10.8)
6    Sec. 10.8. Specialty retailers license.
7    (a) "Veterans service organization" means an organization
8that:
9        (1) is formed by and for United States military
10    veterans;
11        (2) is chartered by the United States Congress and
12    incorporated in the State of Illinois;
13        (3) maintains a state headquarters office in the State
14    of Illinois; and
15        (4) is not funded by the State of Illinois or by any
16    county in this State.
17    (b) The Department Division shall establish a special
18classification of retailer license to facilitate the
19year-round sale of the instant scratch-off lottery game
20established by the General Assembly in Section 21.6. The fees
21set forth in Section 10.2 do not apply to a specialty retailer
22license.
23    The holder of a specialty retailer license (i) shall be a
24veterans service organization, (ii) may sell only specialty
25lottery tickets established for the benefit of the Veterans

 

 

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1Assistance Fund in the State treasury, (iii) is required to
2purchase those tickets up front at face value from the Illinois
3Lottery, and (iv) must sell those tickets at face value.
4Specialty retailers may obtain a refund from the Department
5Division for any unsold specialty tickets that they have
6purchased for resale, as set forth in the specialty retailer
7agreement.
8    Specialty retailers shall receive a sales commission equal
9to 2% of the face value of specialty game tickets purchased
10from the Department, less adjustments for unsold tickets
11returned to the Illinois Lottery for credit. Specialty
12retailers may not cash winning tickets, but are entitled to a
131% bonus in connection with the sale of a winning specialty
14game ticket having a price value of $1,000 or more.
15(Source: P.A. 96-1105, eff. 7-19-10.)
 
16    (20 ILCS 1605/12)  (from Ch. 120, par. 1162)
17    Sec. 12. The public inspection and copying of the records
18and data of the Department Division and the Board shall be
19generally governed by the provisions of the Freedom of
20Information Act except that the following shall additionally be
21exempt from inspection and copying:
22        (i) information privileged against introduction in
23    judicial proceedings;
24        (ii) internal communications of the several agencies;
25        (iii) information concerning secret manufacturing

 

 

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1    processes or confidential data submitted by any person
2    under this Act;
3        (iv) any creative proposals, scripts, storyboards or
4    other materials prepared by or for the Department Division,
5    prior to the placement of the materials in the media, if
6    the prior release of the materials would compromise the
7    effectiveness of an advertising campaign.
8(Source: P.A. 94-776, eff. 5-19-06.)
 
9    (20 ILCS 1605/13)  (from Ch. 120, par. 1163)
10    Sec. 13. Except as otherwise provided in Section 13.1, no
11prize, nor any portion of a prize, nor any right of any person
12to a prize awarded shall be assignable. Any prize, or portion
13thereof remaining unpaid at the death of a prize winner, may be
14paid to the estate of such deceased prize winner, or to the
15trustee under a revocable living trust established by the
16deceased prize winner as settlor, provided that a copy of such
17a trust has been filed with the Department along with a
18notarized letter of direction from the settlor and no written
19notice of revocation has been received by the Department
20Division prior to the settlor's death. Following such a
21settlor's death and prior to any payment to such a successor
22trustee, the Superintendent shall obtain from the trustee a
23written agreement to indemnify and hold the Department and the
24Department Division harmless with respect to any claims that
25may be asserted against the Department or the Division arising

 

 

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1from payment to or through the trust. Notwithstanding any other
2provision of this Section, any person pursuant to an
3appropriate judicial order may be paid the prize to which a
4winner is entitled, and all or part of any prize otherwise
5payable by State warrant under this Section shall be withheld
6upon certification to the State Comptroller from the Department
7of Healthcare and Family Services as provided in Section
810-17.5 of The Illinois Public Aid Code. The Director and the
9Superintendent shall be discharged of all further liability
10upon payment of a prize pursuant to this Section.
11(Source: P.A. 94-776, eff. 5-19-06; 95-331, eff. 8-21-07.)
 
12    (20 ILCS 1605/14)  (from Ch. 120, par. 1164)
13    Sec. 14. No person shall sell a ticket or share at a price
14greater than that fixed by rule or regulation of the Department
15or the Division. No person other than a licensed lottery sales
16agent or distributor shall sell or resell lottery tickets or
17shares. No person shall charge a fee to redeem a winning ticket
18or share.
19    Any person convicted of violating this Section shall be
20guilty of a Class B misdemeanor; provided, that if any offense
21under this Section is a subsequent offense, the offender shall
22be guilty of a Class 4 felony.
23(Source: P.A. 94-776, eff. 5-19-06.)
 
24    (20 ILCS 1605/14.3)

 

 

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1    Sec. 14.3. Misuse of proprietary material prohibited.
2Except as may be provided in Section 7.11, or by bona fide sale
3or by prior authorization from the Department or the Division,
4or otherwise by law, all premiums, promotional and other
5proprietary material produced or acquired by the Department
6Division as part of its advertising and promotional activities
7shall remain the property of the Department. Nothing herein
8shall be construed to affect the rights or obligations of the
9Department or any other person under federal or State trademark
10or copyright laws.
11(Source: P.A. 94-776, eff. 5-19-06.)
 
12    (20 ILCS 1605/19)  (from Ch. 120, par. 1169)
13    Sec. 19. The Department Division shall establish an
14appropriate period for the claiming of prizes for each lottery
15game offered. Each claim period shall be stated in game rules
16and written play instructions issued by the Superintendent in
17accordance with Section 7.1 of this Act. Written play
18instructions shall be made available to all players through
19sales agents licensed to sell game tickets or shares. Prizes
20for lottery games which involve the purchase of a physical
21lottery ticket may be claimed only by presentation of a valid
22winning lottery ticket that matches validation records on file
23with the Lottery; no claim may be honored which is based on the
24assertion that the ticket was lost or stolen. No lottery ticket
25which has been altered, mutilated, or fails to pass validation

 

 

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1tests shall be deemed to be a winning ticket.
2    If no claim is made for the money within the established
3claim period, the prize may be included in the prize pool of
4such special drawing or drawings as the Department Division
5may, from time to time, designate. Unclaimed multi-state game
6prize money may be included in the multi-state prize pool for
7such special drawing or drawings as the multi-state game
8directors may, from time to time, designate. Any bonuses
9offered by the Department to sales agents who sell winning
10tickets or shares shall be payable to such agents regardless of
11whether or not the prize money on the ticket or share is
12claimed, provided that the agent can be identified as the
13vendor of the winning ticket or share, and that the winning
14ticket or share was sold on or after January 1, 1984. All
15unclaimed prize money not included in the prize pool of a
16special drawing shall be transferred to the Common School Fund.
17(Source: P.A. 94-776, eff. 5-19-06.)
 
18    (20 ILCS 1605/20.1)  (from Ch. 120, par. 1170.1)
19    Sec. 20.1. Department account.
20    (a) The Department is authorized to pay validated prizes up
21to $25,000 from funds held by the Department in an account
22separate and apart from all public moneys of the State. Moneys
23in this account shall be administered by the Superintendent
24Director exclusively for the purposes of issuing payments to
25prize winners authorized by this Section. Moneys in this

 

 

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1account shall be deposited by the Department into the Public
2Treasurers' Investment Pool established under Section 17 of the
3State Treasurer Act. The Department shall submit vouchers from
4time to time as needed for reimbursement of this account from
5moneys appropriated for prizes from the State Lottery Fund.
6Investment income earned from this account shall be deposited
7monthly by the Department into the Common School Fund. The
8Department shall file quarterly fiscal reports specifying the
9activity of this account as required under Section 16 of the
10State Comptroller Act, and shall file quarterly with the
11General Assembly, the Auditor General, the Comptroller, and the
12State Treasurer a report indicating the costs associated with
13this activity.
14    (b) The Department is authorized to enter into an
15interagency agreement with the Office of the Comptroller or any
16other State agency to establish responsibilities, duties, and
17procedures for complying with the Comptroller's Offset System
18under Section 10.05 of the State Comptroller Act. All federal
19and State tax reporting and withholding requirements relating
20to prize winners under this Section shall be the responsibility
21of the Department. Moneys from this account may not be used to
22pay amounts to deferred prize winners. Moneys may not be
23transferred from the State Lottery Fund to this account for
24payment of prizes under this Section until procedures are
25implemented to comply with the Comptroller's Offset System and
26sufficient internal controls are in place to validate prizes.

 

 

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1(Source: P.A. 87-1197; 88-676, eff. 12-14-94.)
 
2    (20 ILCS 1605/21)  (from Ch. 120, par. 1171)
3    Sec. 21. All lottery sales agents or distributors shall be
4liable to the Lottery for any and all tickets accepted or
5generated by any employee or representative of that agent or
6distributor, and such tickets shall be deemed to have been
7purchased by the agent or distributor unless returned to the
8Lottery within the time and in the manner prescribed by the
9Superintendent. All moneys received by such agents or
10distributors from the sale of lottery tickets or shares, less
11the amount retained as compensation for the sale of the tickets
12or shares and the amount paid out as prizes, shall be paid over
13to a lottery representative or deposited in a bank or savings
14and loan association approved by the State Treasurer, as
15prescribed by the Superintendent.
16    No bank or savings and loan association shall receive
17public funds as permitted by this Section, unless it has
18complied with the requirements established pursuant to Section
196 of the Public Funds Investment Act.
20    Each payment or deposit shall be accompanied by a report of
21the agent's receipts and transactions in the sale of lottery
22tickets in such form and containing such information as the
23Superintendent may require. Any discrepancies in such receipts
24and transactions may be resolved as provided by the rules and
25regulations of the Department.

 

 

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1    If any money due the Lottery by a sales agent or
2distributor is not paid when due or demanded, it shall
3immediately become delinquent and be billed on a subsequent
4monthly statement. If on the closing date for any monthly
5statement a delinquent amount previously billed of more than
6$50 remains unpaid, interest in such amount shall be accrued at
7the rate of 2% per month or fraction thereof from the date when
8such delinquent amount becomes past due until such delinquent
9amount, including interest, penalty and other costs and charges
10that the Department may incur in collecting such amounts, is
11paid. In case any agent or distributor fails to pay any moneys
12due the Lottery within 30 days after a second bill or statement
13is rendered to the agent or distributor, such amount shall be
14deemed seriously delinquent and may be referred by the
15Department to a collection agency or credit bureau for
16collection. Any contract entered into by the Department for the
17collection of seriously delinquent accounts with a collection
18agency or credit bureau may be satisfied by a commercially
19reasonable percentage of the delinquent account recouped,
20which shall be negotiated by the Department in accordance with
21commercially accepted standards. Any costs incurred by the
22Department or others authorized to act in its behalf in
23collecting such delinquencies may be assessed against the agent
24or distributor and included as a part of the delinquent
25account.
26    In case of failure of an agent or distributor to pay a

 

 

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1seriously delinquent amount, or any portion thereof, including
2interest, penalty and costs, the Department Division may issue
3a Notice of Assessment. In determining amounts shown on the
4Notice of Assessment, the Department Division shall utilize the
5financial information available from its records. Such Notice
6of Assessment shall be prima facie correct and shall be prima
7facie evidence of delinquent sums due under this Section at any
8hearing before the Board, or its Hearing Officers, or at any
9other legal proceeding. Reproduced copies of the Department's
10Division's records relating to a delinquent account or a Notice
11of Assessment offered in the name of the Department, under the
12Certificate of the Superintendent Director or any officer or
13employee of the Department designated in writing by the
14Superintendent Director shall, without further proof, be
15admitted into evidence in any such hearing or any legal
16proceeding and shall be prima facie proof of the delinquency,
17including principal and any interest, penalties and costs, as
18shown thereon. The Attorney General may bring suit on behalf of
19the Department to collect all such delinquent amounts, or any
20portion thereof, including interest, penalty and costs, due the
21Lottery.
22    Any person who accepts money that is due to the Department
23from the sale of lottery tickets under this Act, but who
24wilfully fails to remit such payment to the Department when due
25or who purports to make such payment but wilfully fails to do
26so because his check or other remittance fails to clear the

 

 

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1bank or savings and loan association against which it is drawn,
2in addition to the amount due and in addition to any other
3penalty provided by law, shall be assessed, and shall pay, a
4penalty equal to 5% of the deficiency plus any costs or charges
5incurred by the Department in collecting such amount.
6    The Superintendent Director may make such arrangements for
7any person(s), banks, savings and loan associations or
8distributors, to perform such functions, activities or
9services in connection with the operation of the lottery as he
10deems advisable pursuant to this Act, the State Comptroller
11Act, or the rules and regulations of the Department, and such
12functions, activities or services shall constitute lawful
13functions, activities and services of such person(s), banks,
14savings and loan associations or distributors.
15    All income arising out of any activity or purpose of the
16Department Division shall, pursuant to the State Finance Act,
17be paid into the State Treasury except as otherwise provided by
18the rules and regulations of the Department and shall be
19covered into a special fund to be known as the State Lottery
20Fund. Banks and savings and loan associations may be
21compensated for services rendered based upon the activity and
22amount of funds on deposit.
23(Source: P.A. 94-776, eff. 5-19-06.)
 
24    (20 ILCS 1605/21.5)
25    Sec. 21.5. Ticket For The Cure.

 

 

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1    (a) The Department shall offer a special instant
2scratch-off game with the title of "Ticket For The Cure". The
3game shall commence on January 1, 2006 or as soon thereafter,
4in the discretion of the Superintendent Director, as is
5reasonably practical, and shall be discontinued on December 31,
62011. The operation of the game shall be governed by this Act
7and any rules adopted by the Department. The Department must
8consult with the Ticket For The Cure Board, which is
9established under Section 2310-347 of the Department of Public
10Health Powers and Duties Law of the Civil Administrative Code
11of Illinois, regarding the design and promotion of the game. If
12any provision of this Section is inconsistent with any other
13provision of this Act, then this Section governs.
14    (b) The Carolyn Adams Ticket For The Cure Grant Fund is
15created as a special fund in the State treasury. The net
16revenue from the Ticket For The Cure special instant
17scratch-off game shall be deposited into the Fund for
18appropriation by the General Assembly solely to the Department
19of Public Health for the purpose of making grants to public or
20private entities in Illinois for the purpose of funding
21research concerning breast cancer and for funding services for
22breast cancer victims. The Department must, before grants are
23awarded, provide copies of all grant applications to the Ticket
24For The Cure Board, receive and review the Board's
25recommendations and comments, and consult with the Board
26regarding the grants. For purposes of this Section, the term

 

 

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1"research" includes, without limitation, expenditures to
2develop and advance the understanding, techniques, and
3modalities effective in the detection, prevention, screening,
4and treatment of breast cancer and may include clinical trials.
5The grant funds may not be used for institutional,
6organizational, or community-based overhead costs, indirect
7costs, or levies.
8    Moneys received for the purposes of this Section,
9including, without limitation, net revenue from the special
10instant scratch-off game and gifts, grants, and awards from any
11public or private entity, must be deposited into the Fund. Any
12interest earned on moneys in the Fund must be deposited into
13the Fund.
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 prizes and the actual administrative
17expenses of the Department solely related to the Ticket For The
18Cure game.
19    (c) During the time that tickets are sold for the Ticket
20For The Cure game, the Department shall not unreasonably
21diminish the efforts devoted to marketing any other instant
22scratch-off lottery game.
23    (d) The Department may adopt any rules necessary to
24implement and administer the provisions of this Section.
25(Source: P.A. 96-1290, eff. 7-26-10.)
 

 

 

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1    (20 ILCS 1605/21.6)
2    Sec. 21.6. Scratch-off for Illinois veterans.
3    (a) The Department shall offer a special instant
4scratch-off game for the benefit of Illinois veterans. The game
5shall commence on January 1, 2006 or as soon thereafter, at the
6discretion of the Superintendent Director, as is reasonably
7practical. The operation of the game shall be governed by this
8Act and any rules adopted by the Department. If any provision
9of this Section is inconsistent with any other provision of
10this Act, then this Section governs.
11    (b) The Illinois Veterans Assistance Fund is created as a
12special fund in the State treasury. The net revenue from the
13Illinois veterans scratch-off game shall be deposited into the
14Fund for appropriation by the General Assembly solely to the
15Department of Veterans Affairs for making grants, funding
16additional services, or conducting additional research
17projects relating to each of the following:
18        (i) veterans' post traumatic stress disorder;
19        (ii) veterans' homelessness;
20        (iii) the health insurance costs of veterans;
21        (iv) veterans' disability benefits, including but not
22    limited to, disability benefits provided by veterans
23    service organizations and veterans assistance commissions
24    or centers; and
25        (v) the long-term care of veterans; provided that,
26    beginning with moneys appropriated for fiscal year 2008, no

 

 

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1    more than 20% of such moneys shall be used for health
2    insurance costs.
3        In order to expend moneys from this special fund,
4    beginning with moneys appropriated for fiscal year 2008,
5    the Director of Veterans' Affairs shall appoint a 3-member
6    funding authorization committee. The Superintendent
7    Director shall designate one of the members as chairperson.
8    The committee shall meet on a quarterly basis, at a
9    minimum, and shall authorize expenditure of moneys from the
10    special fund by a two-thirds vote. Decisions of the
11    committee shall not take effect unless and until approved
12    by the Director of Veterans' Affairs. Each member of the
13    committee shall serve until a replacement is named by the
14    Director of Veterans' Affairs. One member of the committee
15    shall be a member of the Veterans' Advisory Council.
16    Moneys collected from the special instant scratch-off game
17shall be used only as a supplemental financial resource and
18shall not supplant existing moneys that the Department of
19Veterans Affairs may currently expend for the purposes set
20forth in items (i) through (v).
21    Moneys received for the purposes of this Section,
22including, without limitation, net revenue from the special
23instant scratch-off game and from gifts, grants, and awards
24from any public or private entity, must be deposited into the
25Fund. Any interest earned on moneys in the Fund must be
26deposited into the Fund.

 

 

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1    For purposes of this subsection, "net revenue" means the
2total amount for which tickets have been sold less the sum of
3the amount paid out in the prizes and the actual administrative
4expenses of the Department solely related to the scratch-off
5game under this Section.
6    (c) During the time that tickets are sold for the Illinois
7veterans scratch-off game, the Department shall not
8unreasonably diminish the efforts devoted to marketing any
9other instant scratch-off lottery game.
10    (d) The Department may adopt any rules necessary to
11implement and administer the provisions of this Section.
12(Source: P.A. 94-585, eff. 8-15-05; 95-331, eff. 8-20-07;
1395-649, eff. 10-11-07.)
 
14    (20 ILCS 1605/21.7)
15    Sec. 21.7. Scratch-out Multiple Sclerosis scratch-off
16game.
17    (a) The Department shall offer a special instant
18scratch-off game for the benefit of research pertaining to
19multiple sclerosis. The game shall commence on July 1, 2008 or
20as soon thereafter, in the discretion of the Superintendent
21Director, as is reasonably practical. The operation of the game
22shall be governed by this Act and any rules adopted by the
23Department. If any provision of this Section is inconsistent
24with any other provision of this Act, then this Section
25governs.

 

 

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1    (b) The Multiple Sclerosis Research Fund is created as a
2special fund in the State treasury. The net revenue from the
3scratch-out multiple sclerosis scratch-off game created under
4this Section shall be deposited into the Fund for appropriation
5by the General Assembly to the Department of Public Health for
6the purpose of making grants to organizations in Illinois that
7conduct research pertaining to the repair of damage caused by
8an acquired demyelinating disease of the central nervous
9system.
10    Moneys received for the purposes of this Section,
11including, without limitation, net revenue from the special
12instant scratch-off game and from gifts, grants, and awards
13from any public or private entity, must be deposited into the
14Fund. Any interest earned on moneys in the Fund must be
15deposited into the Fund.
16    For purposes of this Section, the term "research" includes,
17without limitation, expenditures to develop and advance the
18understanding, techniques, and modalities effective for
19maintaining function, mobility, and strength through
20preventive physical therapy or other treatments and to develop
21and advance the repair of myelin, neuron, and axon damage
22caused by an acquired demyelinating disease of the central
23nervous system and the restoration of function, including but
24not limited to, nervous system repair or neuroregeneration.
25    The grant funds may not be used for institutional,
26organizational, or community-based overhead costs, indirect

 

 

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1costs, or levies.
2    For purposes of this subsection, "net revenue" means the
3total amount for which tickets have been sold less the sum of
4the amount paid out in the prizes and the actual administrative
5expenses of the Department solely related to the scratch-off
6game under this Section.
7    (c) During the time that tickets are sold for the
8scratch-out multiple sclerosis scratch-off game, the
9Department shall not unreasonably diminish the efforts devoted
10to marketing any other instant scratch-off lottery game.
11    (d) The Department may adopt any rules necessary to
12implement and administer the provisions of this Section.
13(Source: P.A. 95-673, eff. 10-11-07; 95-876, eff. 8-21-08.)
 
14    (20 ILCS 1605/21.8)
15    Sec. 21.8. Quality of Life scratch-off game.
16    (a) The Department shall offer a special instant
17scratch-off game with the title of "Quality of Life". The game
18shall commence on July 1, 2007 or as soon thereafter, in the
19discretion of the Superintendent Director, as is reasonably
20practical, and shall be discontinued on December 31, 2012. The
21operation of the game is governed by this Act and by any rules
22adopted by the Department. The Department must consult with the
23Quality of Life Board, which is established under Section
242310-348 of the Department of Public Health Powers and Duties
25Law of the Civil Administrative Code of Illinois, regarding the

 

 

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1design and promotion of the game. If any provision of this
2Section is inconsistent with any other provision of this Act,
3then this Section governs.
4    (b) The Quality of Life Endowment Fund is created as a
5special fund in the State treasury. The net revenue from the
6Quality of Life special instant scratch-off game must be
7deposited into the Fund for appropriation by the General
8Assembly solely to the Department of Public Health for the
9purpose of HIV/AIDS-prevention education and for making grants
10to public or private entities in Illinois for the purpose of
11funding organizations that serve the highest at-risk
12categories for contracting HIV or developing AIDS. Grants shall
13be targeted to serve at-risk populations in proportion to the
14distribution of recent reported Illinois HIV/AIDS cases among
15risk groups as reported by the Illinois Department of Public
16Health. The recipient organizations must be engaged in
17HIV/AIDS-prevention education and HIV/AIDS healthcare
18treatment. The Department must, before grants are awarded,
19provide copies of all grant applications to the Quality of Life
20Board, receive and review the Board's recommendations and
21comments, and consult with the Board regarding the grants.
22Organizational size will determine an organization's
23competitive slot in the "Request for Proposal" process.
24Organizations with an annual budget of $300,000 or less will
25compete with like size organizations for 50% of the Quality of
26Life annual fund. Organizations with an annual budget of

 

 

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1$300,001 to $700,000 will compete with like organizations for
225% of the Quality of Life annual fund, and organizations with
3an annual budget of $700,001 and upward will compete with like
4organizations for 25% of the Quality of Life annual fund. The
5lottery may designate a percentage of proceeds for marketing
6purpose. The grant funds may not be used for institutional,
7organizational, or community-based overhead costs, indirect
8costs, or levies.
9    Grants awarded from the Fund are intended to augment the
10current and future State funding for the prevention and
11treatment of HIV/AIDS and are not intended to replace that
12funding.
13    Moneys received for the purposes of this Section,
14including, without limitation, net revenue from the special
15instant scratch-off game and gifts, grants, and awards from any
16public or private entity, must be deposited into the Fund. Any
17interest earned on moneys in the Fund must be deposited into
18the Fund.
19    For purposes of this subsection, "net revenue" means the
20total amount for which tickets have been sold less the sum of
21the amount paid out in prizes and the actual administrative
22expenses of the Department solely related to the Quality of
23Life game.
24    (c) During the time that tickets are sold for the Quality
25of Life game, the Department shall not unreasonably diminish
26the efforts devoted to marketing any other instant scratch-off

 

 

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1lottery game.
2    (d) The Department may adopt any rules necessary to
3implement and administer the provisions of this Section in
4consultation with the Quality of Life Board.
5(Source: P.A. 95-674, eff. 10-11-07; 95-876, eff. 8-21-08.)
 
6    (20 ILCS 1605/27)  (from Ch. 120, par. 1177)
7    Sec. 27. (a) The State Treasurer may, with the consent of
8the Superintendent Director, contract with any person or
9corporation, including, without limitation, a bank, banking
10house, trust company or investment banking firm, to perform
11such financial functions, activities or services in connection
12with operation of the lottery as the State Treasurer and the
13Superintendent Director may prescribe.
14    (b) All proceeds from investments made pursuant to
15contracts executed by the State Treasurer, with the consent of
16the Superintendent Director, to perform financial functions,
17activities or services in connection with operation of the
18lottery, shall be deposited and held by the State Treasurer as
19ex-officio custodian thereof, separate and apart from all
20public money or funds of this State in a special trust fund
21outside the State treasury. Such trust fund shall be known as
22the "Deferred Lottery Prize Winners Trust Fund", and shall be
23administered by the Superintendent Director.
24    The Superintendent Director shall, at such times and in
25such amounts as shall be necessary, prepare and send to the

 

 

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1State Comptroller vouchers requesting payment from the
2Deferred Lottery Prize Winners Trust Fund to deferred prize
3winners, in a manner that will insure the timely payment of
4such amounts owed.
5    This Act shall constitute an irrevocable appropriation of
6all amounts necessary for that purpose, and the irrevocable and
7continuing authority for and direction to the Superintendent
8Director and the State Treasurer to make the necessary payments
9out of such trust fund for that purpose.
10    (c) Moneys invested pursuant to subsection (a) of this
11Section may be invested only in bonds, notes, certificates of
12indebtedness, treasury bills, or other securities constituting
13direct obligations of the United States of America and all
14securities or obligations the prompt payment of principal and
15interest of which is guaranteed by a pledge of the full faith
16and credit of the United States of America. Interest earnings
17on moneys in the Deferred Lottery Prize Winners Trust Fund
18shall remain in such fund and be used to pay the winners of
19lottery prizes deferred as to payment until such obligations
20are discharged. Proceeds from bonds purchased and interest
21accumulated as a result of a grand prize multi-state game
22ticket that goes unclaimed will be transferred after the
23termination of the relevant claim period directly from the
24lottery's Deferred Lottery Prize Winners Trust Fund to each
25respective multi-state partner state according to its
26contribution ratio.

 

 

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1    (c-5) If a deferred lottery prize is not claimed within the
2claim period established by game rule, then the securities or
3other instruments purchased to fund the prize shall be
4liquidated and the liquidated amount shall be transferred to
5the State Lottery Fund for disposition pursuant to Section 19
6of this Act.
7    (c-10) The Superintendent Director may use a portion of the
8moneys in the Deferred Lottery Prize Winners Trust Fund to
9purchase bonds to pay a lifetime prize if the prize duration
10exceeds the length of available securities. If the winner of a
11lifetime prize exceeds his or her life expectancy as determined
12using actuarial assumptions and the securities or moneys set
13aside to pay the prize have been exhausted, moneys in the State
14Lottery Fund shall be used to make payments to the winner for
15the duration of the winner's life.
16    (c-15) From time to time, the Superintendent Director may
17request that the State Comptroller transfer any excess moneys
18in the Deferred Lottery Prize Winners Trust Fund to the Lottery
19Fund.
20    (d) This amendatory Act of 1985 shall be construed
21liberally to effect the purposes of the Illinois Lottery Law.
22(Source: P.A. 89-466, eff. 6-13-96; 90-346, eff. 8-8-97.)
 
23    (20 ILCS 1605/29 new)
24    Sec. 29. The Department of the Lottery.
25    (a) Executive Order No. 2003-09 is hereby superseded by

 

 

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1this amendatory Act of the 97th General Assembly to the extent
2that Executive Order No. 2003-09 transfers the powers, duties,
3rights, and responsibilities of the Department of the Lottery
4to the Division of the Lottery within the Department of
5Revenue.
6    (b) The Division of the Lottery within the Department of
7Revenue is hereby abolished and the Department of the Lottery
8is created as an independent department. On the effective date
9of this amendatory Act of the 97th General Assembly, all
10powers, duties, rights, and responsibilities of the Division of
11the Lottery within the Department of Revenue shall be
12transferred to the Department of the Lottery.
13    (c) The personnel of the Division of the Lottery within the
14Department of Revenue shall be transferred to the Department of
15the Lottery. The status and rights of such employees under the
16Personnel Code shall not be affected by the transfer. The
17rights of the employees and the State of Illinois and its
18agencies under the Personnel Code and applicable collective
19bargaining agreements or under any pension, retirement, or
20annuity plan shall not be affected by this amendatory Act of
21the 97th General Assembly. To the extent that an employee
22performs duties for the Division of the Lottery within the
23Department of Revenue and the Department of Revenue itself or
24any other division or agency within the Department of Revenue,
25that employee shall be transferred at the Governor's
26discretion.

 

 

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1    (d) All books, records, papers, documents, property (real
2and personal), contracts, causes of action, and pending
3business pertaining to the powers, duties, rights, and
4responsibilities transferred by this amendatory Act of the 97th
5General Assembly from the Division of the Lottery within the
6Department of Revenue to the Department of the Lottery,
7including, but not limited to, material in electronic or
8magnetic format and necessary computer hardware and software,
9shall be transferred to the Department of the Lottery.
10    (e) All unexpended appropriations and balances and other
11funds available for use by the Division of the Lottery within
12the Department of Revenue shall be transferred for use by the
13Department of the Lottery pursuant to the direction of the
14Governor. Unexpended balances so transferred shall be expended
15only for the purpose for which the appropriations were
16originally made.
17    (f) The powers, duties, rights, and responsibilities
18transferred from the Division of the Lottery within the
19Department of Revenue by this amendatory Act of the 97th
20General Assembly shall be vested in and shall be exercised by
21the Department of the Lottery.
22    (g) Whenever reports or notices are now required to be made
23or given or papers or documents furnished or served by any
24person to or upon the Division of the Lottery within the
25Department of Revenue in connection with any of the powers,
26duties, rights, and responsibilities transferred by this

 

 

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1amendatory Act of the 97th General Assembly, the same shall be
2made, given, furnished, or served in the same manner to or upon
3the Department of the Lottery.
4    (h) This amendatory Act of the 97th General Assembly does
5not affect any act done, ratified, or canceled or any right
6occurring or established or any action or proceeding had or
7commenced in an administrative, civil, or criminal cause by the
8Division of the Lottery within the Department of Revenue before
9this amendatory Act of the 97th General Assembly takes effect;
10such actions or proceedings may be prosecuted and continued by
11the Department of the Lottery.
12    (i) Any rules of the Division of the Lottery within the
13Department of Revenue, including any rules of its predecessor
14Department of the Lottery, that relate to its powers, duties,
15rights, and responsibilities and are in full force on the
16effective date of this amendatory Act of the 97th General
17Assembly shall become the rules of the recreated Department of
18the Lottery. This amendatory Act of the 97th General Assembly
19does not affect the legality of any such rules in the Illinois
20Administrative Code.
21    Any proposed rules filed with the Secretary of State by the
22Division of the Lottery within the Department of Revenue that
23are pending in the rulemaking process on the effective date of
24this amendatory Act of the 97th General Assembly and pertain to
25the powers, duties, rights, and responsibilities transferred,
26shall be deemed to have been filed by the Department of the

 

 

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1Lottery. As soon as practicable hereafter, the Department of
2the Lottery shall revise and clarify the rules transferred to
3it under this amendatory Act of the 97th General Assembly to
4reflect the reorganization of powers, duties, rights, and
5responsibilities affected by this amendatory Act, using the
6procedures for recodification of rules available under the
7Illinois Administrative Procedures Act, except that existing
8title, part, and section numbering for the affected rules may
9be retained. The Department of the Lottery may propose and
10adopt under the Illinois Administrative Procedures Act such
11other rules of the Division of the Lottery within the
12Department of Revenue that will now be administered by the
13Department of the Lottery.
14    To the extent that, prior to the effective date of this
15amendatory Act of the 97th General Assembly, the Superintendent
16of the Division of the Lottery within the Department of Revenue
17had been empowered to prescribe rules or had other rulemaking
18authority jointly with the Director of the Department of
19Revenue with regard to the powers, duties, rights, and
20responsibilities of the Division of the Lottery within the
21Department of Revenue, such duties shall be exercised from and
22after the effective date of this amendatory Act of the 97th
23General Assembly solely by the Superintendent of the Department
24of the Lottery.
 
25    Section 15. The Department of Public Health Powers and

 

 

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1Duties Law of the Civil Administrative Code of Illinois is
2amended by changing Section 2310-348 as follows:
 
3    (20 ILCS 2310/2310-348)
4    Sec. 2310-348. The Quality of Life Board.
5    (a) The Quality of Life Board is created as an advisory
6board within the Department. The Board shall consist of 11
7members as follows: 2 members appointed by the President of the
8Senate; one member appointed by the Minority Leader of the
9Senate; 2 members appointed by the Speaker of the House of
10Representatives; one member appointed by the Minority Leader of
11the House of Representatives; 2 members appointed by the
12Governor, one of whom shall be designated as chair of the Board
13at the time of appointment; and 3 members appointed by the
14Director who represent organizations that advocate for the
15healthcare needs of the first and second highest HIV/AIDS risk
16groups, one each from the northern Illinois region, the central
17Illinois region, and the southern Illinois region.
18    The Board members shall serve one 2-year term. If a vacancy
19occurs in the Board membership, the vacancy shall be filled in
20the same manner as the initial appointment.
21    (b) Board members shall serve without compensation but may
22be reimbursed for their reasonable travel expenses from funds
23appropriated for that purpose. The Department shall provide
24staff and administrative support services to the Board.
25    (c) The Board must:

 

 

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1        (i) consult with the Department of the Lottery Revenue
2    in designing and promoting the Quality of Life special
3    instant scratch-off lottery game; and
4        (ii) review grant applications, make recommendations
5    and comments, and consult with the Department of Public
6    Health in making grants, from amounts appropriated from the
7    Quality of Life Endowment Fund, to public or private
8    entities in Illinois for the purpose of
9    HIV/AIDS-prevention education and for making grants to
10    public or private entities in Illinois for the purpose of
11    funding organizations that serve the highest at-risk
12    categories for contracting HIV or developing AIDS in
13    accordance with Section 21.7 of the Illinois Lottery Law.
14    (d) The Board is discontinued on June 30, 2013.
15(Source: P.A. 95-674, eff. 10-11-07.)
 
16    Section 20. The Illinois Department of Revenue Sunshine Act
17is amended by changing Section 2.3 as follows:
 
18    (20 ILCS 2515/2.3)  (from Ch. 127, par. 2002.3)
19    Sec. 2.3. "Revenue laws" means any statutes, rules or
20regulations administered or promulgated by the Department
21including those concerning the Illinois Lottery Law.
22(Source: P.A. 82-727.)
 
23    (20 ILCS 5/5-370 rep.)

 

 

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1    Section 25. The Civil Administrative Code of Illinois is
2amended by repealing Section 5-370.
 
3     Section 99. Effective date. This Section and the changes
4to Sections 3, 5, and 9.1 of the Illinois Lottery Law take
5effect upon becoming law. The remainder of this Act takes
6effect on October 15, 2011.