Rep. Barbara Flynn Currie

Filed: 5/30/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 270

2    AMENDMENT NO. ______. Amend Senate Bill 270, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Civil Administrative Code of Illinois is
6amended by changing Sections 5-20 and 5-175 as follows:
 
7    (20 ILCS 5/5-20)  (was 20 ILCS 5/4)
8    Sec. 5-20. Heads of departments. Each department shall have
9an officer as its head who shall be known as director or
10secretary and who shall, subject to the provisions of the Civil
11Administrative Code of Illinois, execute the powers and
12discharge the duties vested by law in his or her respective
13department.
14    The following officers are hereby created:
15    Director of Aging, for the Department on Aging.
16    Director of Agriculture, for the Department of

 

 

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1Agriculture.
2    Director of Central Management Services, for the
3Department of Central Management Services.
4    Director of Children and Family Services, for the
5Department of Children and Family Services.
6    Director of Commerce and Economic Opportunity, for the
7Department of Commerce and Economic Opportunity.
8    Director of Corrections, for the Department of
9Corrections.
10    Director of the Illinois Emergency Management Agency, for
11the Illinois Emergency Management Agency.
12    Director of Employment Security, for the Department of
13Employment Security.
14    Secretary of Financial and Professional Regulation, for
15the Department of Financial and Professional Regulation.
16    Director of Healthcare and Family Services, for the
17Department of Healthcare and Family Services.
18    Director of Human Rights, for the Department of Human
19Rights.
20    Secretary of Human Services, for the Department of Human
21Services.
22    Director of the Illinois Power Agency, for the Illinois
23Power Agency.
24    Director of Juvenile Justice, for the Department of
25Juvenile Justice.
26    Director of Labor, for the Department of Labor.

 

 

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1    Director of the Lottery, for the Department of the Lottery.
2    Director of Natural Resources, for the Department of
3Natural Resources.
4    Director of Public Health, for the Department of Public
5Health.
6    Director of Revenue, for the Department of Revenue.
7    Director of State Police, for the Department of State
8Police.
9    Secretary of Transportation, for the Department of
10Transportation.
11    Director of Veterans' Affairs, for the Department of
12Veterans' Affairs.
13(Source: P.A. 95-331, eff. 8-21-07; 95-481, eff. 8-28-07;
1495-777, eff. 8-4-08; 96-328, eff. 8-11-09.)
 
15    (20 ILCS 5/5-175)  (was 20 ILCS 5/5.12)
16    Sec. 5-175. In the Department of Revenue. Assistant
17Director of Revenue; and State Lottery Superintendent.
18(Source: P.A. 91-239, eff. 1-1-00.)
 
19    Section 10. The Illinois Lottery Law is amended by changing
20Sections 3, 4, 5, 6, 7.1, 7.6, 7.11, 7.12, 9, 9.1, 10, 10.1,
2110.1a, 10.2, 10.6, 10.7, 10.8, 12, 13, 14, 14.3, 19, 20.1, 21,
2221.5, 21.6, 21.7, 21.8, 26, and 27 and by adding Section 29 as
23follows:
 

 

 

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1    (20 ILCS 1605/3)  (from Ch. 120, par. 1153)
2    Sec. 3. For the purposes of this Act:
3    a. "Lottery" or "State Lottery" means the lottery or
4lotteries established and operated pursuant to this Act.
5    b. "Board" means the Lottery Control Board created by this
6Act.
7    c. "Department" means the Department of the Lottery
8Revenue.
9    d. (Blank). "Director" means the Director of Revenue.
10    e. "Chairman" means the Chairman of the Lottery Control
11Board.
12    f. "Multi-state game directors" means such persons,
13including the Superintendent, as may be designated by an
14agreement between the Department Division and one or more
15additional lotteries operated under the laws of another state
16or states.
17    g. (Blank). "Division" means the Division of the State
18Lottery of the Department of Revenue.
19    h. "Superintendent" means the Superintendent of the
20Department Division of the State Lottery of the Department of
21Revenue.
22    i. "Management agreement" means an agreement or contract
23between the Department on behalf of the State with a private
24manager, as an independent contractor, whereby the private
25manager provides management services to the Lottery in exchange
26for compensation that may consist of, among other things, a fee

 

 

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1for services and a performance-based bonus of no more than 5%
2of Lottery profits so long as the Department continues to
3exercise actual control over all significant business
4decisions made by the private manager as set forth in Section
59.1.
6    j. "Person" means any individual, firm, association, joint
7venture, partnership, estate, trust, syndicate, fiduciary,
8corporation, or other legal entity, group, or combination.
9    k. "Private manager" means a person that provides
10management services to the Lottery on behalf of the Department
11under a management agreement.
12    l. "Profits" means total revenues accruing from the sale of
13lottery tickets or shares and related proceeds minus (1) the
14payment of prizes and retailer bonuses and (2) the payment of
15costs incurred in the operation and administration of the
16lottery, excluding costs of services directly rendered by a
17private manager.
18    m. "Chief Procurement Officer" means the Chief Procurement
19Officer provided for under paragraph (4) of subsection (a) of
20Section 10-20 of the Illinois Procurement Code.
21(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
22eff. 12-23-09.)
 
23    (20 ILCS 1605/4)  (from Ch. 120, par. 1154)
24    Sec. 4. The Department of the Lottery is established to
25implement and regulate the State Lottery in the manner provided

 

 

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1in this Act.
2    In accordance with Executive Order No. 9 (2003), the
3Division of the State Lottery is established within the
4Department of Revenue. Unless otherwise provided by law, the
5Division of the State Lottery shall be subject to and governed
6by all of the laws and rules applicable to the Department.
7(Source: P.A. 94-776, eff. 5-19-06.)
 
8    (20 ILCS 1605/5)  (from Ch. 120, par. 1155)
9    Sec. 5. (a) The Department Division shall be under the
10supervision and direction of a Superintendent, who shall be a
11person qualified by training and experience to perform the
12duties required by this Act. The Superintendent shall be
13appointed by the Governor, by and with the advice and consent
14of the Senate. The term of office of the Superintendent shall
15expire on the third Monday of January in odd numbered years
16provided that he or she shall hold office until a successor is
17appointed and qualified. The annual salary of the
18Superintendent is $142,000.
19    Any vacancy occurring in the office of the Superintendent
20shall be filled in the same manner as the original appointment.
21In case of a vacancy during the recess of the Senate, the
22Governor shall make a temporary appointment until the next
23meeting of the Senate, when the Governor shall nominate some
24person to fill the office, and any person so nominated who is
25confirmed by the Senate shall hold office during the remainder

 

 

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1of the term and until his or her successor is appointed and
2qualified.
3    During the absence or inability to act of the
4Superintendent, or in the case of a vacancy in the office of
5Superintendent until a successor is appointed and qualified,
6the Governor may designate some person as Acting Superintendent
7of the Lottery to execute the powers and discharge the duties
8vested by law in that office. A person who is designated as an
9Acting Superintendent shall not continue in office for more
10than 60 calendar days unless the Governor files a message with
11the Secretary of the Senate nominating that person to fill the
12office. After 60 calendar days, the office is considered vacant
13and shall be filled only under this Section. No person who has
14been appointed by the Governor to serve as Acting
15Superintendent shall, except at the Senate's request, be
16designated again as an Acting Superintendent at the same
17session of that Senate, subject to the provisions of this
18Section. A person appointed as an Acting Superintendent is not
19required to meet the requirements of paragraph (1) of
20subsection (b) of this Section. In no case may the Governor
21designate a person to serve as Acting Superintendent if that
22person has prior to the effective date of this amendatory Act
23of the 97th General Assembly exercised any of the duties and
24functions of the office of Superintendent without having been
25nominated by the Governor to serve as Superintendent.
26    (b) The Superintendent shall devote his or her entire time

 

 

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1and attention to the duties of the office and shall not be
2engaged in any other profession or occupation. The
3Superintendent shall receive such salary as shall be provided
4by law.
5    The Superintendent shall:
6        (1) be qualified by training and experience to direct a
7    lottery, including, at a minimum, 5 years of senior
8    executive-level experience in the successful advertising,
9    marketing, and selling of consumer products, 4 years of
10    successful experience directing a lottery on behalf of a
11    governmental entity, or 5 years of successful senior-level
12    management experience at a lottery on behalf of a
13    governmental entity;
14        (2) have significant and meaningful management and
15    regulatory experience; and
16        (3) have a good reputation, particularly as a person of
17    honesty, independence, and integrity.
18    The Superintendent shall not during his or her term of
19appointment: become a candidate for any elective office; hold
20any other elected or appointed public office; be actively
21involved in the affairs of any political party or political
22organization; advocate for the appointment of another person to
23an appointed or elected office or position; or actively
24participate in any campaign for any elective office. The
25Superintendent may be appointed to serve on a governmental
26advisory or board study commission or as otherwise expressly

 

 

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1authorized by law.
2    (c) No person shall perform the duties and functions of the
3Superintendent, or otherwise exercise the authority of the
4Superintendent, unless the same shall have been appointed by
5the Governor pursuant to this Section.
6(Source: P.A. 94-776, eff. 5-19-06.)
 
7    (20 ILCS 1605/6)  (from Ch. 120, par. 1156)
8    Sec. 6. There is hereby created an independent board to be
9known as the Lottery Control Board, consisting of 5 members,
10all of whom shall be citizens of the United States and
11residents of this State and shall be appointed by the Governor
12with the advice and consent of the Senate. No more than 3 of
13the 5 members shall be members of the same political party. A
14chairman of the Board shall be chosen annually from the
15membership of the Board by a majority of the members of the
16Board at the first meeting of the Board each fiscal year.
17    Initial members shall be appointed to the Board by the
18Governor as follows: one member to serve until July 1, 1974,
19and until his successor is appointed and qualified; 2 members
20to serve until July 1, 1975, and until their successors are
21appointed and qualified; 2 members to serve until July 1, 1976,
22and until their successors are appointed and qualified. As
23terms of members so appointed expire, their successors shall be
24appointed for terms to expire the first day in July 3 years
25thereafter, and until their successors are appointed and

 

 

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1qualified.
2    Any vacancy in the Board occurring for any reason other
3than expiration of term, shall be filled for the unexpired term
4in the same manner as the original appointment.
5    Any member of the Board may be removed by the Governor for
6neglect of duty, misfeasance, malfeasance, or nonfeasance in
7office.
8    Board members shall receive as compensation for their
9services $100 for each day they are in attendance at any
10official board meeting, but in no event shall members receive
11more than $1,200 per year. They shall receive no other
12compensation for their services, but shall be reimbursed for
13necessary traveling and other reasonable expenses incurred in
14the performance of their official duties. Each member shall
15make a full financial disclosure upon appointment.
16    The Board shall hold at least one meeting each quarter of
17the fiscal year. In addition, special meetings may be called by
18the Chairman, any 2 Board members, or the Superintendent
19Director of the Department, upon delivery of 72 hours' written
20notice to the office of each member. All Board meetings shall
21be open to the public pursuant to the Open Meetings Act.
22    Three members of the Board shall constitute a quorum, and 3
23votes shall be required for any final determination by the
24Board. The Board shall keep a complete and accurate record of
25all its meetings.
26(Source: P.A. 84-1128.)
 

 

 

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1    (20 ILCS 1605/7.1)  (from Ch. 120, par. 1157.1)
2    Sec. 7.1. The Department shall promulgate such rules and
3regulations governing the establishment and operation of a
4State lottery as it deems necessary to carry out the purposes
5of this Act. Such rules and regulations shall be subject to the
6provisions of The Illinois Administrative Procedure Act. The
7Department Division shall issue written game rules, play
8instructions, directives, operations manuals, brochures, or
9any other publications necessary to conduct specific games, as
10authorized by rule by the Department. Any written game rules,
11play instructions, directives, operations manuals, brochures,
12or other game publications issued by the Department Division
13that relate to a specific lottery game shall be maintained as a
14public record in the Department's Division's principal office,
15and made available for public inspection and copying but shall
16be exempt from the rulemaking procedures of the Illinois
17Administrative Procedure Act. However, when such written
18materials contain any policy of general applicability, the
19Department Division shall formulate and adopt such policy as a
20rule in accordance with the provisions of the Illinois
21Administrative Procedure Act. In addition, the Department
22Division shall publish each January in the Illinois Register a
23list of all game-specific rules, play instructions,
24directives, operations manuals, brochures, or other
25game-specific publications issued by the Department Division

 

 

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1during the previous year and instructions concerning how the
2public may obtain copies of these materials from the Department
3Division.
4(Source: P.A. 94-776, eff. 5-19-06.)
 
5    (20 ILCS 1605/7.6)  (from Ch. 120, par. 1157.6)
6    Sec. 7.6. The Board shall advise and make recommendations
7to the Superintendent or the Director regarding the functions
8and operations of the State Lottery. A copy of all such
9recommendations shall also be forwarded to the Governor, the
10Attorney General, the Speaker of the House, the President of
11the Senate and the minority leaders of both houses.
12(Source: P.A. 94-776, eff. 5-19-06.)
 
13    (20 ILCS 1605/7.11)  (from Ch. 120, par. 1157.11)
14    Sec. 7.11. The Department Division may establish and
15collect nominal charges for promotional products ("premiums")
16and other promotional materials produced or acquired by the
17Department Division as part of its advertising and promotion
18activities. Such premiums or other promotional materials may be
19sold to individuals, government agencies and not-for-profit
20organizations, but not to for-profit enterprises for the
21purpose of resale. Other State agencies shall be charged no
22more than the cost to the Department Division of the premium or
23promotional material. All proceeds from the sale of premiums or
24promotional materials shall be deposited in the State Lottery

 

 

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1Fund in the State Treasury.
2(Source: P.A. 94-776, eff. 5-19-06.)
 
3    (20 ILCS 1605/7.12)
4    Sec. 7.12. Internet pilot program. The General Assembly
5finds that:
6        (1) the consumer market in Illinois has changed since
7    the creation of the Illinois State Lottery in 1974;
8        (2) the Internet has become an integral part of
9    everyday life for a significant number of Illinois
10    residents not only in regards to their professional life,
11    but also in regards to personal business and communication;
12    and
13        (3) the current practices of selling lottery tickets
14    does not appeal to the new form of market participants who
15    prefer to make purchases on the internet at their own
16    convenience.
17    It is the intent of the General Assembly to create an
18Internet pilot program for the sale of lottery tickets to
19capture this new form of market participant.
20    The Department shall create a pilot program that allows an
21individual 18 years of age or older to purchase lottery tickets
22or shares on the Internet without using a Lottery retailer with
23on-line status, as those terms are defined by rule. The
24Department shall restrict the sale of lottery tickets on the
25Internet to transactions initiated and received or otherwise

 

 

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1made exclusively within the State of Illinois. The Department
2shall adopt rules necessary for the administration of this
3program. These rules shall include requirements for marketing
4of the Lottery to infrequent players. The provisions of this
5Act and the rules adopted under this Act shall apply to the
6sale of lottery tickets or shares under this program.
7    Before beginning the pilot program, the Department of the
8Lottery Revenue must submit a request to the United States
9Department of Justice for review of the State's plan to
10implement a pilot program for the sale of lottery tickets on
11the Internet and its propriety under federal law. The
12Department shall implement the Internet pilot program only if
13the Department of Justice does not object to the implementation
14of the program within a reasonable period of time after its
15review.
16    The Department is obligated to implement the pilot program
17set forth in this Section and Sections 7.15 and 7.16 only at
18such time, and to such extent, that the Department of Justice
19does not object to the implementation of the program within a
20reasonable period of time after its review. While the Illinois
21Lottery may only offer Lotto and Mega Millions games through
22the pilot program, the Department shall request review from the
23federal Department of Justice for the Illinois Lottery to sell
24lottery tickets on the Internet on behalf of the State of
25Illinois that are not limited to just these games.
26    The Department shall authorize the private manager to

 

 

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1implement and administer the program pursuant to the management
2agreement entered into under Section 9.1 and in a manner
3consistent with the provisions of this Section. If a private
4manager has not been selected pursuant to Section 9.1 at the
5time the Department is obligated to implement the pilot
6program, then the Department shall not proceed with the pilot
7program until after the selection of the private manager, at
8which time the Department shall authorize the private manager
9to implement and administer the program pursuant to the
10management agreement entered into under Section 9.1 and in a
11manner consistent with the provisions of this Section.
12    The pilot program shall last for not less than 36 months,
13but not more than 48 months from the date of its initial
14operation.
15    Nothing in this Section shall be construed as prohibiting
16the Department from implementing and operating a website portal
17whereby individuals who are 18 years of age or older with an
18Illinois mailing address may apply to purchase lottery tickets
19via subscription.
20(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
21eff. 12-23-09.)
 
22    (20 ILCS 1605/9)  (from Ch. 120, par. 1159)
23    Sec. 9. The Superintendent, as administrative head of the
24Department Division, shall direct and supervise all its
25administrative and technical activities and shall report to the

 

 

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1Director. In addition to the duties imposed upon him elsewhere
2in this Act, it shall be the Superintendent's duty:
3    a. To supervise and administer the operation of the lottery
4in accordance with the provisions of this Act or such rules and
5regulations of the Department adopted thereunder.
6    b. To attend meetings of the Board or to appoint a designee
7to attend in his stead.
8    c. To employ and direct such personnel in accord with the
9Personnel Code, as may be necessary to carry out the purposes
10of this Act. The Superintendent may, subject to the approval of
11the Director, use the services, personnel, or facilities of the
12Department. In addition, the Superintendent may by agreement
13secure such services as he or she may deem necessary from any
14other department, agency, or unit of the State government, and
15may employ and compensate such consultants and technical
16assistants as may be required and is otherwise permitted by
17law.
18    d. To license, in accordance with the provisions of
19Sections 10 and 10.1 of this Act and the rules and regulations
20of the Department adopted thereunder, as agents to sell lottery
21tickets such persons as in his opinion will best serve the
22public convenience and promote the sale of tickets or shares.
23The Superintendent may require a bond from every licensed
24agent, in such amount as provided in the rules and regulations
25of the Department. Every licensed agent shall prominently
26display his license, or a copy thereof, as provided in the

 

 

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1rules and regulations of the Department.
2    e. To suspend or revoke any license issued pursuant to this
3Act or the rules and regulations promulgated by the Department
4thereunder.
5    f. To confer regularly as necessary or desirable and not
6less than once every month with the Lottery Control Board on
7the operation and administration of the Lottery; to make
8available for inspection by the Board or any member of the
9Board, upon request, all books, records, files, and other
10information and documents of his office; to advise the Board
11and recommend such rules and regulations and such other matters
12as he deems necessary and advisable to improve the operation
13and administration of the lottery.
14    g. To enter into contracts for the operation of the
15lottery, or any part thereof, and into contracts for the
16promotion of the lottery on behalf of the Department with any
17person, firm or corporation, to perform any of the functions
18provided for in this Act or the rules and regulations
19promulgated thereunder. The Department shall not expend State
20funds on a contractual basis for such functions unless those
21functions and expenditures are expressly authorized by the
22General Assembly.
23    h. To enter into an agreement or agreements with the
24management of state lotteries operated pursuant to the laws of
25other states for the purpose of creating and operating a
26multi-state lottery game wherein a separate and distinct prize

 

 

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1pool would be combined to award larger prizes to the public
2than could be offered by the several state lotteries,
3individually. No tickets or shares offered in connection with a
4multi-state lottery game shall be sold within the State of
5Illinois, except those offered by and through the Department.
6No such agreement shall purport to pledge the full faith and
7credit of the State of Illinois, nor shall the Department
8expend State funds on a contractual basis in connection with
9any such game unless such expenditures are expressly authorized
10by the General Assembly, provided, however, that in the event
11of error or omission by the Illinois State Lottery in the
12conduct of the game, as determined by the multi-state game
13directors, the Department shall be authorized to pay a prize
14winner or winners the lesser of a disputed prize or $1,000,000,
15any such payment to be made solely from funds appropriated for
16game prize purposes. The Department shall be authorized to
17share in the ordinary operating expenses of any such
18multi-state lottery game, from funds appropriated by the
19General Assembly, and in the event the multi-state game control
20offices are physically located within the State of Illinois,
21the Department is authorized to advance start-up operating
22costs not to exceed $150,000, subject to proportionate
23reimbursement of such costs by the other participating state
24lotteries. The Department shall be authorized to share
25proportionately in the costs of establishing a liability
26reserve fund from funds appropriated by the General Assembly.

 

 

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1The Department is authorized to transfer prize award funds
2attributable to Illinois sales of multi-state lottery game
3tickets to the multi-state control office, or its designated
4depository, for deposit to such game pool account or accounts
5as may be established by the multi-state game directors, the
6records of which account or accounts shall be available at all
7times for inspection in an audit by the Auditor General of
8Illinois and any other auditors pursuant to the laws of the
9State of Illinois. No multi-state game prize awarded to a
10nonresident of Illinois, with respect to a ticket or share
11purchased in a state other than the State of Illinois, shall be
12deemed to be a prize awarded under this Act for the purpose of
13taxation under the Illinois Income Tax Act. The Department
14shall promulgate such rules as may be appropriate to implement
15the provisions of this Section.
16    i. To make a continuous study and investigation of (1) the
17operation and the administration of similar laws which may be
18in effect in other states or countries, (2) any literature on
19the subject which from time to time may be published or
20available, (3) any Federal laws which may affect the operation
21of the lottery, and (4) the reaction of Illinois citizens to
22existing and potential features of the lottery with a view to
23recommending or effecting changes that will tend to serve the
24purposes of this Act.
25    j. To report monthly to the State Treasurer and the Lottery
26Control Board a full and complete statement of lottery

 

 

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1revenues, prize disbursements and other expenses for each month
2and the amounts to be transferred to the Common School Fund
3pursuant to Section 7.2 or such other funds as are otherwise
4authorized by Section 21.2 of this Act, and to make an annual
5report, which shall include a full and complete statement of
6lottery revenues, prize disbursements and other expenses, to
7the Governor and the Board. All reports required by this
8subsection shall be public and copies of all such reports shall
9be sent to the Speaker of the House, the President of the
10Senate, and the minority leaders of both houses.
11(Source: P.A. 96-37, eff. 7-13-09.)
 
12    (20 ILCS 1605/9.1)
13    Sec. 9.1. Private manager and management agreement.
14    (a) As used in this Section:
15    "Offeror" means a person or group of persons that responds
16to a request for qualifications under this Section.
17    "Request for qualifications" means all materials and
18documents prepared by the Department to solicit the following
19from offerors:
20        (1) Statements of qualifications.
21        (2) Proposals to enter into a management agreement,
22    including the identity of any prospective vendor or vendors
23    that the offeror intends to initially engage to assist the
24    offeror in performing its obligations under the management
25    agreement.

 

 

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1    "Final offer" means the last proposal submitted by an
2offeror in response to the request for qualifications,
3including the identity of any prospective vendor or vendors
4that the offeror intends to initially engage to assist the
5offeror in performing its obligations under the management
6agreement.
7    "Final offeror" means the offeror ultimately selected by
8the Governor to be the private manager for the Lottery under
9subsection (h) of this Section.
10    (b) By September 15, 2010, the Governor shall select a
11private manager for the total management of the Lottery with
12integrated functions, such as lottery game design, supply of
13goods and services, and advertising and as specified in this
14Section.
15    (c) Pursuant to the terms of this subsection, the
16Department shall endeavor to expeditiously terminate the
17existing contracts in support of the Lottery in effect on the
18effective date of this amendatory Act of the 96th General
19Assembly in connection with the selection of the private
20manager. As part of its obligation to terminate these contracts
21and select the private manager, the Department shall establish
22a mutually agreeable timetable to transfer the functions of
23existing contractors to the private manager so that existing
24Lottery operations are not materially diminished or impaired
25during the transition. To that end, the Department shall do the
26following:

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    Department, following the termination of or foreclosure
2    upon the management agreement.
3        (21) Right of use of copyrights, trademarks, and
4    service marks held by the Department in the name of the
5    State. The agreement must provide that any use of them by
6    the manager shall only be for the purpose of fulfilling its
7    obligations under the management agreement during the term
8    of the agreement.
9        (22) The disclosure of any information requested by the
10    Department to enable it to comply with the reporting
11    requirements and information requests provided for under
12    subsection (p) of this Section.
13    (e) Notwithstanding any other law to the contrary, the
14Department shall select a private manager through a competitive
15request for qualifications process consistent with Section
1620-35 of the Illinois Procurement Code, which shall take into
17account:
18        (1) the offeror's ability to market the Lottery to
19    those residents who are new, infrequent, or lapsed players
20    of the Lottery, especially those who are most likely to
21    make regular purchases on the Internet;
22        (2) the offeror's ability to address the State's
23    concern with the social effects of gambling on those who
24    can least afford to do so;
25        (3) the offeror's ability to provide the most
26    successful management of the Lottery for the benefit of the

 

 

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1    people of the State based on current and past business
2    practices or plans of the offeror; and
3        (4) the offeror's poor or inadequate past performance
4    in servicing, equipping, operating or managing a lottery on
5    behalf of Illinois, another State or foreign government and
6    attracting persons who are not currently regular players of
7    a lottery.
8    (f) The Department may retain the services of an advisor or
9advisors with significant experience in financial services or
10the management, operation, and procurement of goods, services,
11and equipment for a government-run lottery to assist in the
12preparation of the terms of the request for qualifications and
13selection of the private manager. Any prospective advisor
14seeking to provide services under this subsection (f) shall
15disclose any material business or financial relationship
16during the past 3 years with any potential offeror, or with a
17contractor or subcontractor presently providing goods,
18services, or equipment to the Department to support the
19Lottery. The Department shall evaluate the material business or
20financial relationship of each prospective advisor. The
21Department shall not select any prospective advisor with a
22substantial business or financial relationship that the
23Department deems to impair the objectivity of the services to
24be provided by the prospective advisor. During the course of
25the advisor's engagement by the Department, and for a period of
26one year thereafter, the advisor shall not enter into any

 

 

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1business or financial relationship with any offeror or any
2vendor identified to assist an offeror in performing its
3obligations under the management agreement. Any advisor
4retained by the Department shall be disqualified from being an
5offeror. The Department shall not include terms in the request
6for qualifications that provide a material advantage whether
7directly or indirectly to any potential offeror, or any
8contractor or subcontractor presently providing goods,
9services, or equipment to the Department to support the
10Lottery, including terms contained in previous responses to
11requests for proposals or qualifications submitted to
12Illinois, another State or foreign government when those terms
13are uniquely associated with a particular potential offeror,
14contractor, or subcontractor. The request for proposals
15offered by the Department on December 22, 2008 as
16"LOT08GAMESYS" and reference number "22016176" is declared
17void.
18    (g) The Department shall select at least 2 offerors as
19finalists to potentially serve as the private manager no later
20than August 9, 2010. Upon making preliminary selections, the
21Department shall schedule a public hearing on the finalists'
22proposals and provide public notice of the hearing at least 7
23calendar days before the hearing. The notice must include all
24of the following:
25        (1) The date, time, and place of the hearing.
26        (2) The subject matter of the hearing.

 

 

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1        (3) A brief description of the management agreement to
2    be awarded.
3        (4) The identity of the offerors that have been
4    selected as finalists to serve as the private manager.
5        (5) The address and telephone number of the Department.
6    (h) At the public hearing, the Department shall (i) provide
7sufficient time for each finalist to present and explain its
8proposal to the Department and the Governor or the Governor's
9designee, including an opportunity to respond to questions
10posed by the Department, Governor, or designee and (ii) allow
11the public and non-selected offerors to comment on the
12presentations. The Governor or a designee shall attend the
13public hearing. After the public hearing, the Department shall
14have 14 calendar days to recommend to the Governor whether a
15management agreement should be entered into with a particular
16finalist. After reviewing the Department's recommendation, the
17Governor may accept or reject the Department's recommendation,
18and shall select a final offeror as the private manager by
19publication of a notice in the Illinois Procurement Bulletin on
20or before September 15, 2010. The Governor shall include in the
21notice a detailed explanation and the reasons why the final
22offeror is superior to other offerors and will provide
23management services in a manner that best achieves the
24objectives of this Section. The Governor shall also sign the
25management agreement with the private manager.
26    (i) Any action to contest the private manager selected by

 

 

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1the Governor under this Section must be brought within 7
2calendar days after the publication of the notice of the
3designation of the private manager as provided in subsection
4(h) of this Section.
5    (j) The Lottery shall remain, for so long as a private
6manager manages the Lottery in accordance with provisions of
7this Act, a Lottery conducted by the State, and the State shall
8not be authorized to sell or transfer the Lottery to a third
9party.
10    (k) Any tangible personal property used exclusively in
11connection with the lottery that is owned by the Department and
12leased to the private manager shall be owned by the Department
13in the name of the State and shall be considered to be public
14property devoted to an essential public and governmental
15function.
16    (l) The Department may exercise any of its powers under
17this Section or any other law as necessary or desirable for the
18execution of the Department's powers under this Section.
19    (m) Neither this Section nor any management agreement
20entered into under this Section prohibits the General Assembly
21from authorizing forms of gambling that are not in direct
22competition with the Lottery.
23    (n) The private manager shall be subject to a complete
24investigation in the third, seventh, and tenth years of the
25agreement (if the agreement is for a 10-year term) by the
26Department in cooperation with the Auditor General to determine

 

 

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

 

 

09700SB0270ham003- 34 -LRB097 04078 AMC 56635 a

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

 

 

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1Procurement Officer certifies that the procurement process has
2been followed in accordance with the rules adopted under this
3subsection (o), shall select a final offeror as the private
4manager and sign the management agreement with the private
5manager.
6    Except as provided in Sections 21.2, 21.5, 21.6, 21.7, and
721.8, the Department shall distribute all proceeds of lottery
8tickets and shares sold in the following priority and manner:
9        (1) The payment of prizes and retailer bonuses.
10        (2) The payment of costs incurred in the operation and
11    administration of the Lottery, including the payment of
12    sums due to the private manager under the management
13    agreement with the Department and payment of sums due to
14    the private vendor for lottery tickets and shares sold on
15    the Internet via the pilot program as compensation under
16    its contract with the Department.
17        (3) On the last day of each month or as soon thereafter
18    as possible, the State Comptroller shall direct and the
19    State Treasurer shall transfer from the Lottery Fund to the
20    Common School Fund an amount that is equal to the proceeds
21    transferred in the corresponding month of fiscal year 2009,
22    as adjusted for inflation, to the Common School Fund.
23        (4) On or before the last day of each fiscal year,
24    deposit any remaining proceeds, subject to payments under
25    items (1), (2), and (3) into the Capital Projects Fund each
26    fiscal year.

 

 

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1    (p) The Department shall be subject to the following
2reporting and information request requirements:
3        (1) the Department shall submit written quarterly
4    reports to the Governor and the General Assembly on the
5    activities and actions of the private manager selected
6    under this Section;
7        (2) upon request of the Chief Procurement Officer, the
8    Department shall promptly produce information related to
9    the procurement activities of the Department and the
10    private manager requested by the Chief Procurement
11    Officer; the Chief Procurement Officer must retain
12    confidential, proprietary, or trade secret information
13    designated by the Department in complete confidence
14    pursuant to subsection (g) of Section 7 of the Freedom of
15    Information Act; and
16        (3) at least 30 days prior to the beginning of the
17    Department's fiscal year, the Department shall prepare an
18    annual written report on the activities of the private
19    manager selected under this Section and deliver that report
20    to the Governor and General Assembly.
21(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
22eff. 12-23-09.)
 
23    (20 ILCS 1605/10)  (from Ch. 120, par. 1160)
24    Sec. 10. The Department Division, upon application
25therefor on forms prescribed by the Department Division, and

 

 

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1upon a determination by the Department Division that the
2applicant meets all of the qualifications specified in this
3Act, shall issue a license as an agent to sell lottery tickets
4or shares. No license as an agent to sell lottery tickets or
5shares shall be issued to any person to engage in business
6exclusively as a lottery sales agent.
7    Before issuing such license the Superintendent shall
8consider (a) the financial responsibility and security of the
9person and his business or activity, (b) the accessibility of
10his place of business or activity to the public, (c) the
11sufficiency of existing licenses to serve the public
12convenience, (d) the volume of expected sales, and (e) such
13other factors as he or she may deem appropriate.
14    Until September 1, 1987, the provisions of Sections 2a, 4,
155, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 6, 6a, 6b, 6c, 8, 9,
1610, 12 and 13.5 of the Retailers' Occupation Tax Act which are
17not inconsistent with this Act shall apply to the subject
18matter of this Act to the same extent as if such provisions
19were included in this Act. For purposes of this Act, references
20in such incorporated Sections of the Retailers' Occupation Tax
21Act to retailers, sellers or persons engaged in the business of
22selling tangible personal property mean persons engaged in
23selling lottery tickets or shares; references in such
24incorporated Sections to sales of tangible personal property
25mean the selling of lottery tickets or shares; and references
26in such incorporated Sections to certificates of registration

 

 

09700SB0270ham003- 38 -LRB097 04078 AMC 56635 a

1mean licenses issued under this Act. The provisions of the
2Retailers' Occupation Tax Act as heretofore applied to the
3subject matter of this Act shall not apply with respect to
4tickets sold by or delivered to lottery sales agents on and
5after September 1, 1987, but such provisions shall continue to
6apply with respect to transactions involving the sale and
7delivery of tickets prior to September 1, 1987.
8    All licenses issued by the Department Division under this
9Act shall be valid for a period not to exceed 2 years after
10issuance unless sooner revoked, canceled or suspended as in
11this Act provided. No license issued under this Act shall be
12transferable or assignable. Such license shall be
13conspicuously displayed in the place of business conducted by
14the licensee in Illinois where lottery tickets or shares are to
15be sold under such license.
16    For purposes of this Section, the term "person" shall be
17construed to mean and include an individual, association,
18partnership, corporation, club, trust, estate, society,
19company, joint stock company, receiver, trustee, referee, any
20other person acting in a fiduciary or representative capacity
21who is appointed by a court, or any combination of individuals.
22"Person" includes any department, commission, agency or
23instrumentality of the State, including any county, city,
24village, or township and any agency or instrumentality thereof.
25(Source: P.A. 94-776, eff. 5-19-06.)
 

 

 

09700SB0270ham003- 39 -LRB097 04078 AMC 56635 a

1    (20 ILCS 1605/10.1)  (from Ch. 120, par. 1160.1)
2    Sec. 10.1. The following are ineligible for any license
3under this Act:
4    (a) any person who has been convicted of a felony;
5    (b) any person who is or has been a professional gambler or
6gambling promoter;
7    (c) any person who has engaged in bookmaking or other forms
8of illegal gambling;
9    (d) any person who is not of good character and reputation
10in the community in which he resides;
11    (e) any person who has been found guilty of any fraud or
12misrepresentation in any connection;
13    (f) any firm or corporation in which a person defined in
14(a), (b), (c), (d) or (e) has a proprietary, equitable or
15credit interest of 5% or more.
16    (g) any organization in which a person defined in (a), (b),
17(c), (d) or (e) is an officer, director, or managing agent,
18whether compensated or not;
19    (h) any organization in which a person defined in (a), (b),
20(c), (d), or (e) is to participate in the management or sales
21of lottery tickets or shares.
22    However, with respect to persons defined in (a), the
23Department may grant any such person a license under this Act
24when:
25    1) at least 10 years have elapsed since the date when the
26sentence for the most recent such conviction was satisfactorily

 

 

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1completed;
2    2) the applicant has no history of criminal activity
3subsequent to such conviction;
4    3) the applicant has complied with all conditions of
5probation, conditional discharge, supervision, parole or
6mandatory supervised release; and
7    4) the applicant presents at least 3 letters of
8recommendation from responsible citizens in his community who
9personally can attest that the character and attitude of the
10applicant indicate that he is unlikely to commit another crime.
11    The Department Division may revoke, without notice or a
12hearing, the license of any agent who violates this Act or any
13rule or regulation promulgated pursuant to this Act. However,
14if the Department Division does revoke a license without notice
15and an opportunity for a hearing, the Department Division
16shall, by appropriate notice, afford the person whose license
17has been revoked an opportunity for a hearing within 30 days
18after the revocation order has been issued. As a result of any
19such hearing, the Department Division may confirm its action in
20revoking the license, or it may order the restoration of such
21license.
22(Source: P.A. 94-776, eff. 5-19-06.)
 
23    (20 ILCS 1605/10.1a)  (from Ch. 120, par. 1160.1a)
24    Sec. 10.1a. In addition to other grounds specified in this
25Act, the Department Division shall refuse to issue and shall

 

 

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1suspend the license of any lottery sales agency who fails to
2file a return, or to pay the tax, penalty or interest shown in
3a filed return, or to pay any final assessment of tax, penalty
4or interest, as required by any tax Act administered by the
5Department of Revenue, until such time as the requirements of
6any such tax Act are satisfied, unless the agency is
7contesting, in accordance with the procedures established by
8the appropriate revenue Act, its liability for the tax or the
9amount of tax. The Department Division shall affirmatively
10verify the tax status of every sales agency before issuing or
11renewing a license. For purposes of this Section, a sales
12agency shall not be considered delinquent in the payment of a
13tax if the agency (a) has entered into an agreement with the
14Department of Revenue for the payment of all such taxes that
15are due and (b) is in compliance with the agreement.
16(Source: P.A. 94-776, eff. 5-19-06.)
 
17    (20 ILCS 1605/10.2)  (from Ch. 120, par. 1160.2)
18    Sec. 10.2. Application and other fees. Each application
19for a new lottery license must be accompanied by a one-time
20application fee of $50; the Department Division, however, may
21waive the fee for licenses of limited duration as provided by
22Department rule. Each application for renewal of a lottery
23license must be accompanied by a renewal fee of $25. Each
24lottery licensee granted on-line status pursuant to the
25Department's rules must pay a fee of $10 per week as partial

 

 

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1reimbursement for telecommunications charges incurred by the
2Department in providing access to the lottery's on-line gaming
3system. The Department, by rule, may increase or decrease the
4amount of these fees.
5(Source: P.A. 93-840, eff. 7-30-04; 94-776, eff. 5-19-06.)
 
6    (20 ILCS 1605/10.6)  (from Ch. 120, par. 1160.6)
7    Sec. 10.6. The Department Division shall make an effort to
8more directly inform players of the odds of winning prizes.
9This effort shall include, at a minimum, that the Department
10Division require all ticket agents to display a placard stating
11the odds of winning for each game offered by that agent.
12(Source: P.A. 94-776, eff. 5-19-06.)
 
13    (20 ILCS 1605/10.7)
14    Sec. 10.7. Compulsive gambling.
15    (a) Each lottery sales agent shall post a statement
16regarding obtaining assistance with gambling problems and
17including a toll-free "800" telephone number providing crisis
18counseling and referral services to families experiencing
19difficulty as a result of problem or compulsive gambling. The
20text of the statement shall be determined by rule by the
21Department of Human Services, shall be no more than one
22sentence in length, and shall be posted on the placard required
23under Section 10.6. The signs shall be provided by the
24Department of Human Services.

 

 

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1    (b) The Department Division shall print a statement
2regarding obtaining assistance with gambling problems, the
3text of which shall be determined by rule by the Department of
4Human Services, on all paper stock it provides to the general
5public.
6    (c) The Department Division shall print a statement of no
7more than one sentence in length regarding obtaining assistance
8with gambling problems and including a toll-free "800" number
9providing crisis counseling and referral services to families
10experiencing difficulty as a result of problem or compulsive
11gambling on the back of all lottery tickets.
12(Source: P.A. 94-776, eff. 5-19-06.)
 
13    (20 ILCS 1605/10.8)
14    Sec. 10.8. Specialty retailers license.
15    (a) "Veterans service organization" means an organization
16that:
17        (1) is formed by and for United States military
18    veterans;
19        (2) is chartered by the United States Congress and
20    incorporated in the State of Illinois;
21        (3) maintains a state headquarters office in the State
22    of Illinois; and
23        (4) is not funded by the State of Illinois or by any
24    county in this State.
25    (b) The Department Division shall establish a special

 

 

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1classification of retailer license to facilitate the
2year-round sale of the instant scratch-off lottery game
3established by the General Assembly in Section 21.6. The fees
4set forth in Section 10.2 do not apply to a specialty retailer
5license.
6    The holder of a specialty retailer license (i) shall be a
7veterans service organization, (ii) may sell only specialty
8lottery tickets established for the benefit of the Veterans
9Assistance Fund in the State treasury, (iii) is required to
10purchase those tickets up front at face value from the Illinois
11Lottery, and (iv) must sell those tickets at face value.
12Specialty retailers may obtain a refund from the Department
13Division for any unsold specialty tickets that they have
14purchased for resale, as set forth in the specialty retailer
15agreement.
16    Specialty retailers shall receive a sales commission equal
17to 2% of the face value of specialty game tickets purchased
18from the Department, less adjustments for unsold tickets
19returned to the Illinois Lottery for credit. Specialty
20retailers may not cash winning tickets, but are entitled to a
211% bonus in connection with the sale of a winning specialty
22game ticket having a price value of $1,000 or more.
23(Source: P.A. 96-1105, eff. 7-19-10.)
 
24    (20 ILCS 1605/12)  (from Ch. 120, par. 1162)
25    Sec. 12. The public inspection and copying of the records

 

 

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1and data of the Department Division and the Board shall be
2generally governed by the provisions of the Freedom of
3Information Act except that the following shall additionally be
4exempt from inspection and copying:
5        (i) information privileged against introduction in
6    judicial proceedings;
7        (ii) internal communications of the several agencies;
8        (iii) information concerning secret manufacturing
9    processes or confidential data submitted by any person
10    under this Act;
11        (iv) any creative proposals, scripts, storyboards or
12    other materials prepared by or for the Department Division,
13    prior to the placement of the materials in the media, if
14    the prior release of the materials would compromise the
15    effectiveness of an advertising campaign.
16(Source: P.A. 94-776, eff. 5-19-06.)
 
17    (20 ILCS 1605/13)  (from Ch. 120, par. 1163)
18    Sec. 13. Except as otherwise provided in Section 13.1, no
19prize, nor any portion of a prize, nor any right of any person
20to a prize awarded shall be assignable. Any prize, or portion
21thereof remaining unpaid at the death of a prize winner, may be
22paid to the estate of such deceased prize winner, or to the
23trustee under a revocable living trust established by the
24deceased prize winner as settlor, provided that a copy of such
25a trust has been filed with the Department along with a

 

 

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1notarized letter of direction from the settlor and no written
2notice of revocation has been received by the Department
3Division prior to the settlor's death. Following such a
4settlor's death and prior to any payment to such a successor
5trustee, the Superintendent shall obtain from the trustee a
6written agreement to indemnify and hold the Department and the
7Department Division harmless with respect to any claims that
8may be asserted against the Department or the Division arising
9from payment to or through the trust. Notwithstanding any other
10provision of this Section, any person pursuant to an
11appropriate judicial order may be paid the prize to which a
12winner is entitled, and all or part of any prize otherwise
13payable by State warrant under this Section shall be withheld
14upon certification to the State Comptroller from the Department
15of Healthcare and Family Services as provided in Section
1610-17.5 of The Illinois Public Aid Code. The Director and the
17Superintendent shall be discharged of all further liability
18upon payment of a prize pursuant to this Section.
19(Source: P.A. 94-776, eff. 5-19-06; 95-331, eff. 8-21-07.)
 
20    (20 ILCS 1605/14)  (from Ch. 120, par. 1164)
21    Sec. 14. No person shall sell a ticket or share at a price
22greater than that fixed by rule or regulation of the Department
23or the Division. No person other than a licensed lottery sales
24agent or distributor shall sell or resell lottery tickets or
25shares. No person shall charge a fee to redeem a winning ticket

 

 

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1or share.
2    Any person convicted of violating this Section shall be
3guilty of a Class B misdemeanor; provided, that if any offense
4under this Section is a subsequent offense, the offender shall
5be guilty of a Class 4 felony.
6(Source: P.A. 94-776, eff. 5-19-06.)
 
7    (20 ILCS 1605/14.3)
8    Sec. 14.3. Misuse of proprietary material prohibited.
9Except as may be provided in Section 7.11, or by bona fide sale
10or by prior authorization from the Department or the Division,
11or otherwise by law, all premiums, promotional and other
12proprietary material produced or acquired by the Department
13Division as part of its advertising and promotional activities
14shall remain the property of the Department. Nothing herein
15shall be construed to affect the rights or obligations of the
16Department or any other person under federal or State trademark
17or copyright laws.
18(Source: P.A. 94-776, eff. 5-19-06.)
 
19    (20 ILCS 1605/19)  (from Ch. 120, par. 1169)
20    Sec. 19. The Department Division shall establish an
21appropriate period for the claiming of prizes for each lottery
22game offered. Each claim period shall be stated in game rules
23and written play instructions issued by the Superintendent in
24accordance with Section 7.1 of this Act. Written play

 

 

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1instructions shall be made available to all players through
2sales agents licensed to sell game tickets or shares. Prizes
3for lottery games which involve the purchase of a physical
4lottery ticket may be claimed only by presentation of a valid
5winning lottery ticket that matches validation records on file
6with the Lottery; no claim may be honored which is based on the
7assertion that the ticket was lost or stolen. No lottery ticket
8which has been altered, mutilated, or fails to pass validation
9tests shall be deemed to be a winning ticket.
10    If no claim is made for the money within the established
11claim period, the prize may be included in the prize pool of
12such special drawing or drawings as the Department Division
13may, from time to time, designate. Unclaimed multi-state game
14prize money may be included in the multi-state prize pool for
15such special drawing or drawings as the multi-state game
16directors may, from time to time, designate. Any bonuses
17offered by the Department to sales agents who sell winning
18tickets or shares shall be payable to such agents regardless of
19whether or not the prize money on the ticket or share is
20claimed, provided that the agent can be identified as the
21vendor of the winning ticket or share, and that the winning
22ticket or share was sold on or after January 1, 1984. All
23unclaimed prize money not included in the prize pool of a
24special drawing shall be transferred to the Common School Fund.
25(Source: P.A. 94-776, eff. 5-19-06.)
 

 

 

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1    (20 ILCS 1605/20.1)  (from Ch. 120, par. 1170.1)
2    Sec. 20.1. Department account.
3    (a) The Department is authorized to pay validated prizes up
4to $25,000 from funds held by the Department in an account
5separate and apart from all public moneys of the State. Moneys
6in this account shall be administered by the Superintendent
7Director exclusively for the purposes of issuing payments to
8prize winners authorized by this Section. Moneys in this
9account shall be deposited by the Department into the Public
10Treasurers' Investment Pool established under Section 17 of the
11State Treasurer Act. The Department shall submit vouchers from
12time to time as needed for reimbursement of this account from
13moneys appropriated for prizes from the State Lottery Fund.
14Investment income earned from this account shall be deposited
15monthly by the Department into the Common School Fund. The
16Department shall file quarterly fiscal reports specifying the
17activity of this account as required under Section 16 of the
18State Comptroller Act, and shall file quarterly with the
19General Assembly, the Auditor General, the Comptroller, and the
20State Treasurer a report indicating the costs associated with
21this activity.
22    (b) The Department is authorized to enter into an
23interagency agreement with the Office of the Comptroller or any
24other State agency to establish responsibilities, duties, and
25procedures for complying with the Comptroller's Offset System
26under Section 10.05 of the State Comptroller Act. All federal

 

 

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1and State tax reporting and withholding requirements relating
2to prize winners under this Section shall be the responsibility
3of the Department. Moneys from this account may not be used to
4pay amounts to deferred prize winners. Moneys may not be
5transferred from the State Lottery Fund to this account for
6payment of prizes under this Section until procedures are
7implemented to comply with the Comptroller's Offset System and
8sufficient internal controls are in place to validate prizes.
9(Source: P.A. 87-1197; 88-676, eff. 12-14-94.)
 
10    (20 ILCS 1605/21)  (from Ch. 120, par. 1171)
11    Sec. 21. All lottery sales agents or distributors shall be
12liable to the Lottery for any and all tickets accepted or
13generated by any employee or representative of that agent or
14distributor, and such tickets shall be deemed to have been
15purchased by the agent or distributor unless returned to the
16Lottery within the time and in the manner prescribed by the
17Superintendent. All moneys received by such agents or
18distributors from the sale of lottery tickets or shares, less
19the amount retained as compensation for the sale of the tickets
20or shares and the amount paid out as prizes, shall be paid over
21to a lottery representative or deposited in a bank or savings
22and loan association approved by the State Treasurer, as
23prescribed by the Superintendent.
24    No bank or savings and loan association shall receive
25public funds as permitted by this Section, unless it has

 

 

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1complied with the requirements established pursuant to Section
26 of the Public Funds Investment Act.
3    Each payment or deposit shall be accompanied by a report of
4the agent's receipts and transactions in the sale of lottery
5tickets in such form and containing such information as the
6Superintendent may require. Any discrepancies in such receipts
7and transactions may be resolved as provided by the rules and
8regulations of the Department.
9    If any money due the Lottery by a sales agent or
10distributor is not paid when due or demanded, it shall
11immediately become delinquent and be billed on a subsequent
12monthly statement. If on the closing date for any monthly
13statement a delinquent amount previously billed of more than
14$50 remains unpaid, interest in such amount shall be accrued at
15the rate of 2% per month or fraction thereof from the date when
16such delinquent amount becomes past due until such delinquent
17amount, including interest, penalty and other costs and charges
18that the Department may incur in collecting such amounts, is
19paid. In case any agent or distributor fails to pay any moneys
20due the Lottery within 30 days after a second bill or statement
21is rendered to the agent or distributor, such amount shall be
22deemed seriously delinquent and may be referred by the
23Department to a collection agency or credit bureau for
24collection. Any contract entered into by the Department for the
25collection of seriously delinquent accounts with a collection
26agency or credit bureau may be satisfied by a commercially

 

 

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1reasonable percentage of the delinquent account recouped,
2which shall be negotiated by the Department in accordance with
3commercially accepted standards. Any costs incurred by the
4Department or others authorized to act in its behalf in
5collecting such delinquencies may be assessed against the agent
6or distributor and included as a part of the delinquent
7account.
8    In case of failure of an agent or distributor to pay a
9seriously delinquent amount, or any portion thereof, including
10interest, penalty and costs, the Department Division may issue
11a Notice of Assessment. In determining amounts shown on the
12Notice of Assessment, the Department Division shall utilize the
13financial information available from its records. Such Notice
14of Assessment shall be prima facie correct and shall be prima
15facie evidence of delinquent sums due under this Section at any
16hearing before the Board, or its Hearing Officers, or at any
17other legal proceeding. Reproduced copies of the Department's
18Division's records relating to a delinquent account or a Notice
19of Assessment offered in the name of the Department, under the
20Certificate of the Superintendent Director or any officer or
21employee of the Department designated in writing by the
22Superintendent Director shall, without further proof, be
23admitted into evidence in any such hearing or any legal
24proceeding and shall be prima facie proof of the delinquency,
25including principal and any interest, penalties and costs, as
26shown thereon. The Attorney General may bring suit on behalf of

 

 

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1the Department to collect all such delinquent amounts, or any
2portion thereof, including interest, penalty and costs, due the
3Lottery.
4    Any person who accepts money that is due to the Department
5from the sale of lottery tickets under this Act, but who
6wilfully fails to remit such payment to the Department when due
7or who purports to make such payment but wilfully fails to do
8so because his check or other remittance fails to clear the
9bank or savings and loan association against which it is drawn,
10in addition to the amount due and in addition to any other
11penalty provided by law, shall be assessed, and shall pay, a
12penalty equal to 5% of the deficiency plus any costs or charges
13incurred by the Department in collecting such amount.
14    The Superintendent Director may make such arrangements for
15any person(s), banks, savings and loan associations or
16distributors, to perform such functions, activities or
17services in connection with the operation of the lottery as he
18deems advisable pursuant to this Act, the State Comptroller
19Act, or the rules and regulations of the Department, and such
20functions, activities or services shall constitute lawful
21functions, activities and services of such person(s), banks,
22savings and loan associations or distributors.
23    All income arising out of any activity or purpose of the
24Department Division shall, pursuant to the State Finance Act,
25be paid into the State Treasury except as otherwise provided by
26the rules and regulations of the Department and shall be

 

 

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1covered into a special fund to be known as the State Lottery
2Fund. Banks and savings and loan associations may be
3compensated for services rendered based upon the activity and
4amount of funds on deposit.
5(Source: P.A. 94-776, eff. 5-19-06.)
 
6    (20 ILCS 1605/21.5)
7    Sec. 21.5. Ticket For The Cure.
8    (a) The Department shall offer a special instant
9scratch-off game with the title of "Ticket For The Cure". The
10game shall commence on January 1, 2006 or as soon thereafter,
11in the discretion of the Superintendent Director, as is
12reasonably practical, and shall be discontinued on December 31,
132011. The operation of the game shall be governed by this Act
14and any rules adopted by the Department. The Department must
15consult with the Ticket For The Cure Board, which is
16established under Section 2310-347 of the Department of Public
17Health Powers and Duties Law of the Civil Administrative Code
18of Illinois, regarding the design and promotion of the game. If
19any provision of this Section is inconsistent with any other
20provision of this Act, then this Section governs.
21    (b) The Carolyn Adams Ticket For The Cure Grant Fund is
22created as a special fund in the State treasury. The net
23revenue from the Ticket For The Cure special instant
24scratch-off game shall be deposited into the Fund for
25appropriation by the General Assembly solely to the Department

 

 

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1of Public Health for the purpose of making grants to public or
2private entities in Illinois for the purpose of funding
3research concerning breast cancer and for funding services for
4breast cancer victims. The Department must, before grants are
5awarded, provide copies of all grant applications to the Ticket
6For The Cure Board, receive and review the Board's
7recommendations and comments, and consult with the Board
8regarding the grants. For purposes of this Section, the term
9"research" includes, without limitation, expenditures to
10develop and advance the understanding, techniques, and
11modalities effective in the detection, prevention, screening,
12and treatment of breast cancer and may include clinical trials.
13The grant funds may not be used for institutional,
14organizational, or community-based overhead costs, indirect
15costs, or levies.
16    Moneys received for the purposes of this Section,
17including, without limitation, net revenue from the special
18instant scratch-off game and gifts, grants, and awards from any
19public or private entity, must be deposited into the Fund. Any
20interest earned on moneys in the Fund must be deposited into
21the Fund.
22    For purposes of this subsection, "net revenue" means the
23total amount for which tickets have been sold less the sum of
24the amount paid out in prizes and the actual administrative
25expenses of the Department solely related to the Ticket For The
26Cure game.

 

 

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1    (c) During the time that tickets are sold for the Ticket
2For The Cure game, the Department shall not unreasonably
3diminish the efforts devoted to marketing any other instant
4scratch-off lottery game.
5    (d) The Department may adopt any rules necessary to
6implement and administer the provisions of this Section.
7(Source: P.A. 96-1290, eff. 7-26-10.)
 
8    (20 ILCS 1605/21.6)
9    Sec. 21.6. Scratch-off for Illinois veterans.
10    (a) The Department shall offer a special instant
11scratch-off game for the benefit of Illinois veterans. The game
12shall commence on January 1, 2006 or as soon thereafter, at the
13discretion of the Superintendent Director, as is reasonably
14practical. The operation of the game shall be governed by this
15Act and any rules adopted by the Department. If any provision
16of this Section is inconsistent with any other provision of
17this Act, then this Section governs.
18    (b) The Illinois Veterans Assistance Fund is created as a
19special fund in the State treasury. The net revenue from the
20Illinois veterans scratch-off game shall be deposited into the
21Fund for appropriation by the General Assembly solely to the
22Department of Veterans Affairs for making grants, funding
23additional services, or conducting additional research
24projects relating to each of the following:
25        (i) veterans' post traumatic stress disorder;

 

 

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1        (ii) veterans' homelessness;
2        (iii) the health insurance costs of veterans;
3        (iv) veterans' disability benefits, including but not
4    limited to, disability benefits provided by veterans
5    service organizations and veterans assistance commissions
6    or centers; and
7        (v) the long-term care of veterans; provided that,
8    beginning with moneys appropriated for fiscal year 2008, no
9    more than 20% of such moneys shall be used for health
10    insurance costs.
11        In order to expend moneys from this special fund,
12    beginning with moneys appropriated for fiscal year 2008,
13    the Director of Veterans' Affairs shall appoint a 3-member
14    funding authorization committee. The Superintendent
15    Director shall designate one of the members as chairperson.
16    The committee shall meet on a quarterly basis, at a
17    minimum, and shall authorize expenditure of moneys from the
18    special fund by a two-thirds vote. Decisions of the
19    committee shall not take effect unless and until approved
20    by the Director of Veterans' Affairs. Each member of the
21    committee shall serve until a replacement is named by the
22    Director of Veterans' Affairs. One member of the committee
23    shall be a member of the Veterans' Advisory Council.
24    Moneys collected from the special instant scratch-off game
25shall be used only as a supplemental financial resource and
26shall not supplant existing moneys that the Department of

 

 

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1Veterans Affairs may currently expend for the purposes set
2forth in items (i) through (v).
3    Moneys received for the purposes of this Section,
4including, without limitation, net revenue from the special
5instant scratch-off game and from gifts, grants, and awards
6from any public or private entity, must be deposited into the
7Fund. Any interest earned on moneys in the Fund must be
8deposited into the Fund.
9    For purposes of this subsection, "net revenue" means the
10total amount for which tickets have been sold less the sum of
11the amount paid out in the prizes and the actual administrative
12expenses of the Department solely related to the scratch-off
13game under this Section.
14    (c) During the time that tickets are sold for the Illinois
15veterans scratch-off game, the Department shall not
16unreasonably diminish the efforts devoted to marketing any
17other instant scratch-off lottery game.
18    (d) The Department may adopt any rules necessary to
19implement and administer the provisions of this Section.
20(Source: P.A. 94-585, eff. 8-15-05; 95-331, eff. 8-20-07;
2195-649, eff. 10-11-07.)
 
22    (20 ILCS 1605/21.7)
23    Sec. 21.7. Scratch-out Multiple Sclerosis scratch-off
24game.
25    (a) The Department shall offer a special instant

 

 

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1scratch-off game for the benefit of research pertaining to
2multiple sclerosis. The game shall commence on July 1, 2008 or
3as soon thereafter, in the discretion of the Superintendent
4Director, as is reasonably practical. The operation of the game
5shall be governed by this Act and any rules adopted by the
6Department. If any provision of this Section is inconsistent
7with any other provision of this Act, then this Section
8governs.
9    (b) The Multiple Sclerosis Research Fund is created as a
10special fund in the State treasury. The net revenue from the
11scratch-out multiple sclerosis scratch-off game created under
12this Section shall be deposited into the Fund for appropriation
13by the General Assembly to the Department of Public Health for
14the purpose of making grants to organizations in Illinois that
15conduct research pertaining to the repair of damage caused by
16an acquired demyelinating disease of the central nervous
17system.
18    Moneys received for the purposes of this Section,
19including, without limitation, net revenue from the special
20instant scratch-off game and from gifts, grants, and awards
21from any public or private entity, must be deposited into the
22Fund. Any interest earned on moneys in the Fund must be
23deposited into the Fund.
24    For purposes of this Section, the term "research" includes,
25without limitation, expenditures to develop and advance the
26understanding, techniques, and modalities effective for

 

 

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1maintaining function, mobility, and strength through
2preventive physical therapy or other treatments and to develop
3and advance the repair of myelin, neuron, and axon damage
4caused by an acquired demyelinating disease of the central
5nervous system and the restoration of function, including but
6not limited to, nervous system repair or neuroregeneration.
7    The grant funds may not be used for institutional,
8organizational, or community-based overhead costs, indirect
9costs, or levies.
10    For purposes of this subsection, "net revenue" means the
11total amount for which tickets have been sold less the sum of
12the amount paid out in the prizes and the actual administrative
13expenses of the Department solely related to the scratch-off
14game under this Section.
15    (c) During the time that tickets are sold for the
16scratch-out multiple sclerosis scratch-off game, the
17Department shall not unreasonably diminish the efforts devoted
18to marketing any other instant scratch-off lottery game.
19    (d) The Department may adopt any rules necessary to
20implement and administer the provisions of this Section.
21(Source: P.A. 95-673, eff. 10-11-07; 95-876, eff. 8-21-08.)
 
22    (20 ILCS 1605/21.8)
23    Sec. 21.8. Quality of Life scratch-off game.
24    (a) The Department shall offer a special instant
25scratch-off game with the title of "Quality of Life". The game

 

 

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1shall commence on July 1, 2007 or as soon thereafter, in the
2discretion of the Superintendent Director, as is reasonably
3practical, and shall be discontinued on December 31, 2012. The
4operation of the game is governed by this Act and by any rules
5adopted by the Department. The Department must consult with the
6Quality of Life Board, which is established under Section
72310-348 of the Department of Public Health Powers and Duties
8Law of the Civil Administrative Code of Illinois, regarding the
9design and promotion of the game. If any provision of this
10Section is inconsistent with any other provision of this Act,
11then this Section governs.
12    (b) The Quality of Life Endowment Fund is created as a
13special fund in the State treasury. The net revenue from the
14Quality of Life special instant scratch-off game must be
15deposited into the Fund for appropriation by the General
16Assembly solely to the Department of Public Health for the
17purpose of HIV/AIDS-prevention education and for making grants
18to public or private entities in Illinois for the purpose of
19funding organizations that serve the highest at-risk
20categories for contracting HIV or developing AIDS. Grants shall
21be targeted to serve at-risk populations in proportion to the
22distribution of recent reported Illinois HIV/AIDS cases among
23risk groups as reported by the Illinois Department of Public
24Health. The recipient organizations must be engaged in
25HIV/AIDS-prevention education and HIV/AIDS healthcare
26treatment. The Department must, before grants are awarded,

 

 

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1provide copies of all grant applications to the Quality of Life
2Board, receive and review the Board's recommendations and
3comments, and consult with the Board regarding the grants.
4Organizational size will determine an organization's
5competitive slot in the "Request for Proposal" process.
6Organizations with an annual budget of $300,000 or less will
7compete with like size organizations for 50% of the Quality of
8Life annual fund. Organizations with an annual budget of
9$300,001 to $700,000 will compete with like organizations for
1025% of the Quality of Life annual fund, and organizations with
11an annual budget of $700,001 and upward will compete with like
12organizations for 25% of the Quality of Life annual fund. The
13lottery may designate a percentage of proceeds for marketing
14purpose. The grant funds may not be used for institutional,
15organizational, or community-based overhead costs, indirect
16costs, or levies.
17    Grants awarded from the Fund are intended to augment the
18current and future State funding for the prevention and
19treatment of HIV/AIDS and are not intended to replace that
20funding.
21    Moneys received for the purposes of this Section,
22including, without limitation, net revenue from the special
23instant scratch-off game and gifts, grants, and awards from any
24public or private entity, must be deposited into the Fund. Any
25interest earned on moneys in the Fund must be deposited into
26the 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 prizes and the actual administrative
4expenses of the Department solely related to the Quality of
5Life game.
6    (c) During the time that tickets are sold for the Quality
7of Life game, the Department shall not unreasonably diminish
8the efforts devoted to marketing any other instant scratch-off
9lottery game.
10    (d) The Department may adopt any rules necessary to
11implement and administer the provisions of this Section in
12consultation with the Quality of Life Board.
13(Source: P.A. 95-674, eff. 10-11-07; 95-876, eff. 8-21-08.)
 
14    (20 ILCS 1605/27)  (from Ch. 120, par. 1177)
15    Sec. 27. (a) The State Treasurer may, with the consent of
16the Superintendent Director, contract with any person or
17corporation, including, without limitation, a bank, banking
18house, trust company or investment banking firm, to perform
19such financial functions, activities or services in connection
20with operation of the lottery as the State Treasurer and the
21Superintendent Director may prescribe.
22    (b) All proceeds from investments made pursuant to
23contracts executed by the State Treasurer, with the consent of
24the Superintendent Director, to perform financial functions,
25activities or services in connection with operation of the

 

 

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1lottery, shall be deposited and held by the State Treasurer as
2ex-officio custodian thereof, separate and apart from all
3public money or funds of this State in a special trust fund
4outside the State treasury. Such trust fund shall be known as
5the "Deferred Lottery Prize Winners Trust Fund", and shall be
6administered by the Superintendent Director.
7    The Superintendent Director shall, at such times and in
8such amounts as shall be necessary, prepare and send to the
9State Comptroller vouchers requesting payment from the
10Deferred Lottery Prize Winners Trust Fund to deferred prize
11winners, in a manner that will insure the timely payment of
12such amounts owed.
13    This Act shall constitute an irrevocable appropriation of
14all amounts necessary for that purpose, and the irrevocable and
15continuing authority for and direction to the Superintendent
16Director and the State Treasurer to make the necessary payments
17out of such trust fund for that purpose.
18    (c) Moneys invested pursuant to subsection (a) of this
19Section may be invested only in bonds, notes, certificates of
20indebtedness, treasury bills, or other securities constituting
21direct obligations of the United States of America and all
22securities or obligations the prompt payment of principal and
23interest of which is guaranteed by a pledge of the full faith
24and credit of the United States of America. Interest earnings
25on moneys in the Deferred Lottery Prize Winners Trust Fund
26shall remain in such fund and be used to pay the winners of

 

 

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1lottery prizes deferred as to payment until such obligations
2are discharged. Proceeds from bonds purchased and interest
3accumulated as a result of a grand prize multi-state game
4ticket that goes unclaimed will be transferred after the
5termination of the relevant claim period directly from the
6lottery's Deferred Lottery Prize Winners Trust Fund to each
7respective multi-state partner state according to its
8contribution ratio.
9    (c-5) If a deferred lottery prize is not claimed within the
10claim period established by game rule, then the securities or
11other instruments purchased to fund the prize shall be
12liquidated and the liquidated amount shall be transferred to
13the State Lottery Fund for disposition pursuant to Section 19
14of this Act.
15    (c-10) The Superintendent Director may use a portion of the
16moneys in the Deferred Lottery Prize Winners Trust Fund to
17purchase bonds to pay a lifetime prize if the prize duration
18exceeds the length of available securities. If the winner of a
19lifetime prize exceeds his or her life expectancy as determined
20using actuarial assumptions and the securities or moneys set
21aside to pay the prize have been exhausted, moneys in the State
22Lottery Fund shall be used to make payments to the winner for
23the duration of the winner's life.
24    (c-15) From time to time, the Superintendent Director may
25request that the State Comptroller transfer any excess moneys
26in the Deferred Lottery Prize Winners Trust Fund to the Lottery

 

 

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1Fund.
2    (d) This amendatory Act of 1985 shall be construed
3liberally to effect the purposes of the Illinois Lottery Law.
4(Source: P.A. 89-466, eff. 6-13-96; 90-346, eff. 8-8-97.)
 
5    (20 ILCS 1605/29 new)
6    Sec. 29. The Department of the Lottery.
7    (a) Executive Order No. 2003-09 is hereby superseded by
8this amendatory Act of the 97th General Assembly to the extent
9that Executive Order No. 2003-09 transfers the powers, duties,
10rights, and responsibilities of the Department of the Lottery
11to the Division of the Lottery within the Department of
12Revenue.
13    (b) The Division of the Lottery within the Department of
14Revenue is hereby abolished and the Department of the Lottery
15is created as an independent department. On the effective date
16of this amendatory Act of the 97th General Assembly, all
17powers, duties, rights, and responsibilities of the Division of
18the Lottery within the Department of Revenue shall be
19transferred to the Department of the Lottery.
20    (c) The personnel of the Division of the Lottery within the
21Department of Revenue shall be transferred to the Department of
22the Lottery. The status and rights of such employees under the
23Personnel Code shall not be affected by the transfer. The
24rights of the employees and the State of Illinois and its
25agencies under the Personnel Code and applicable collective

 

 

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1bargaining agreements or under any pension, retirement, or
2annuity plan shall not be affected by this amendatory Act of
3the 97th General Assembly. To the extent that an employee
4performs duties for the Division of the Lottery within the
5Department of Revenue and the Department of Revenue itself or
6any other division or agency within the Department of Revenue,
7that employee shall be transferred at the Governor's
8discretion.
9    (d) All books, records, papers, documents, property (real
10and personal), contracts, causes of action, and pending
11business pertaining to the powers, duties, rights, and
12responsibilities transferred by this amendatory Act of the 97th
13General Assembly from the Division of the Lottery within the
14Department of Revenue to the Department of the Lottery,
15including, but not limited to, material in electronic or
16magnetic format and necessary computer hardware and software,
17shall be transferred to the Department of the Lottery.
18    (e) All unexpended appropriations and balances and other
19funds available for use by the Division of the Lottery within
20the Department of Revenue shall be transferred for use by the
21Department of the Lottery pursuant to the direction of the
22Governor. Unexpended balances so transferred shall be expended
23only for the purpose for which the appropriations were
24originally made.
25    (f) The powers, duties, rights, and responsibilities
26transferred from the Division of the Lottery within the

 

 

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

 

 

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1does not affect the legality of any such rules in the Illinois
2Administrative Code.
3    Any proposed rules filed with the Secretary of State by the
4Division of the Lottery within the Department of Revenue that
5are pending in the rulemaking process on the effective date of
6this amendatory Act of the 97th General Assembly and pertain to
7the powers, duties, rights, and responsibilities transferred,
8shall be deemed to have been filed by the Department of the
9Lottery. As soon as practicable hereafter, the Department of
10the Lottery shall revise and clarify the rules transferred to
11it under this amendatory Act of the 97th General Assembly to
12reflect the reorganization of powers, duties, rights, and
13responsibilities affected by this amendatory Act, using the
14procedures for recodification of rules available under the
15Illinois Administrative Procedures Act, except that existing
16title, part, and section numbering for the affected rules may
17be retained. The Department of the Lottery may propose and
18adopt under the Illinois Administrative Procedures Act such
19other rules of the Division of the Lottery within the
20Department of Revenue that will now be administered by the
21Department of the Lottery.
22    To the extent that, prior to the effective date of this
23amendatory Act of the 97th General Assembly, the Superintendent
24of the Division of the Lottery within the Department of Revenue
25had been empowered to prescribe rules or had other rulemaking
26authority jointly with the Director of the Department of

 

 

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1Revenue with regard to the powers, duties, rights, and
2responsibilities of the Division of the Lottery within the
3Department of Revenue, such duties shall be exercised from and
4after the effective date of this amendatory Act of the 97th
5General Assembly solely by the Superintendent of the Department
6of the Lottery.
 
7    Section 15. The Department of Public Health Powers and
8Duties Law of the Civil Administrative Code of Illinois is
9amended by changing Section 2310-348 as follows:
 
10    (20 ILCS 2310/2310-348)
11    Sec. 2310-348. The Quality of Life Board.
12    (a) The Quality of Life Board is created as an advisory
13board within the Department. The Board shall consist of 11
14members as follows: 2 members appointed by the President of the
15Senate; one member appointed by the Minority Leader of the
16Senate; 2 members appointed by the Speaker of the House of
17Representatives; one member appointed by the Minority Leader of
18the House of Representatives; 2 members appointed by the
19Governor, one of whom shall be designated as chair of the Board
20at the time of appointment; and 3 members appointed by the
21Director who represent organizations that advocate for the
22healthcare needs of the first and second highest HIV/AIDS risk
23groups, one each from the northern Illinois region, the central
24Illinois region, and the southern Illinois region.

 

 

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1    The Board members shall serve one 2-year term. If a vacancy
2occurs in the Board membership, the vacancy shall be filled in
3the same manner as the initial appointment.
4    (b) Board members shall serve without compensation but may
5be reimbursed for their reasonable travel expenses from funds
6appropriated for that purpose. The Department shall provide
7staff and administrative support services to the Board.
8    (c) The Board must:
9        (i) consult with the Department of the Lottery Revenue
10    in designing and promoting the Quality of Life special
11    instant scratch-off lottery game; and
12        (ii) review grant applications, make recommendations
13    and comments, and consult with the Department of Public
14    Health in making grants, from amounts appropriated from the
15    Quality of Life Endowment Fund, to public or private
16    entities in Illinois for the purpose of
17    HIV/AIDS-prevention education and for making grants to
18    public or private entities in Illinois for the purpose of
19    funding organizations that serve the highest at-risk
20    categories for contracting HIV or developing AIDS in
21    accordance with Section 21.7 of the Illinois Lottery Law.
22    (d) The Board is discontinued on June 30, 2013.
23(Source: P.A. 95-674, eff. 10-11-07.)
 
24    Section 20. The Illinois Department of Revenue Sunshine Act
25is amended by changing Section 2.3 as follows:
 

 

 

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1    (20 ILCS 2515/2.3)  (from Ch. 127, par. 2002.3)
2    Sec. 2.3. "Revenue laws" means any statutes, rules or
3regulations administered or promulgated by the Department
4including those concerning the Illinois Lottery Law.
5(Source: P.A. 82-727.)
 
6    (20 ILCS 5/5-370 rep.)
7    Section 25. The Civil Administrative Code of Illinois is
8amended by repealing Section 5-370.
 
9     Section 99. Effective date. This Section and the changes
10to Sections 3, 5, and 9.1 of the Illinois Lottery Law take
11effect upon becoming law. The remainder of this Act takes
12effect on October 15, 2011.".