Sen. Jeffrey M. Schoenberg

Filed: 3/28/2012

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3497

2    AMENDMENT NO. ______. Amend Senate Bill 3497, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 10. The Illinois Lottery Law is amended by
6changing Sections 7.12 and 7.15 and adding Section 14.4 as
7follows:
 
8    (20 ILCS 1605/7.12)
9    Sec. 7.12. Internet pilot program.
10    (a) The General Assembly finds that:
11        (1) the consumer market in Illinois has changed since
12    the creation of the Illinois State Lottery in 1974;
13        (2) the Internet has become an integral part of
14    everyday life for a significant number of Illinois
15    residents not only in regards to their professional life,
16    but also in regards to personal business and communication;

 

 

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1    and
2        (3) the current practices of selling lottery tickets
3    does not appeal to the new form of market participants who
4    prefer to make purchases on the internet at their own
5    convenience.
6    It is the intent of the General Assembly to create an
7Internet pilot program for the sale of lottery tickets to
8capture this new form of market participant.
9    (b) The Department shall create a pilot program that allows
10an individual 18 years of age or older to purchase lottery
11tickets or shares on the Internet without using a Lottery
12retailer with on-line status, as those terms are defined by
13rule. The Department shall restrict the sale of lottery tickets
14on the Internet to transactions initiated and received or
15otherwise made exclusively within the State of Illinois. The
16Department shall adopt rules, including emergency rules,
17necessary for the administration of this program. These rules
18shall include, among other things, requirements for marketing
19of the Lottery to infrequent players, as well as limitations on
20the purchases that may be made through any one individual's
21lottery account. The provisions of this Act and the rules
22adopted under this Act shall apply to the sale of lottery
23tickets or shares under this program.
24    Before beginning the pilot program, the Department of the
25Lottery must submit a request to the United States Department
26of Justice for review of the State's plan to implement a pilot

 

 

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

 

 

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1manner consistent with the provisions of this Section.
2    The pilot program shall last for not less than 36 months,
3but not more than 48 months from the date of its initial
4operation.
5    Nothing in this Section shall be construed as prohibiting
6the Department from implementing and operating a website portal
7whereby individuals who are 18 years of age or older with an
8Illinois mailing address may apply to purchase lottery tickets
9via subscription. Nothing in this Section shall also be
10construed as prohibiting the sale of Lotto, Mega Millions, and
11Powerball games by a lottery licensee pursuant to the
12Department's rules.
13    (c) There is created the Internet Lottery Study Committee
14as an advisory body within the Department. The Department shall
15conduct a study to determine the impact of the Internet pilot
16program on lottery licensees. The Department shall also
17determine the feasibility of the sale of stored value cards by
18lottery licensees as a non-exclusive option for use by
19individuals 18 years of age or older who purchase tickets for
20authorized lottery games in the Internet pilot program. For the
21purposes of this study, it is anticipated that the stored value
22cards will have, but need not be limited to, the following
23characteristics: (1) the cards will be available only to
24individuals 18 years of age and older; (2) the cards will be
25rechargeable, closed-loop cards that can only be loaded with
26cash; (3) the cards will have unique identifying numbers to be

 

 

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1used for on-line play; (4) the cards will have on-line play
2subtracted from the card's value; (5) the cards may have
3on-line winnings added to them; (6) the cards will be used at
4Lottery retailers to cash out winnings of up to $600; and (7)
5the cards will meet all technological, programming, and
6security requirements mandated by the Department and the
7governing bodies of both Mega Millions and Powerball.
8    To the fullest extent possible, but subject to available
9resources, the Department shall ensure that the study evaluates
10and analyzes at least the following issues:
11        (1) economic benefits to the State from Internet
12    Lottery sales from stored value cards and from resulting
13    sales taxes;
14        (2) economic benefits to local governments from sales
15    taxes generated from Internet Lottery sales through stored
16    value cards;
17        (3) economic benefits to Lottery retailers from
18    Internet Lottery sales and from ancillary retail product
19    sales in connection with the same;
20        (4) enhanced player age verification from face-to-face
21    interaction;
22        (5) enhanced control of gambling addiction from
23    face-to-face interaction;
24        (6) elimination of credit card overspending through
25    the use of stored value cards and resulting reduced debt
26    issues;

 

 

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1        (7) the feasibility of the utilization of existing
2    Lottery machines to dispense stored value cards;
3        (8) the technological, programming, and security
4    requirements to make stored value cards an appropriate
5    sales alternative; and
6        (9) the cost and project time estimates for
7    implementation, including adaptation of existing Lottery
8    machines, programming, and technology enhancements and
9    impact to operations.
10    The Study Committee shall consist of the Superintendent or
11his or her designee; the chief executive officer of the
12Lottery's private manager or his or her designee; a
13representative appointed by the Governor's Office; 2
14representatives of the lottery licensee community appointed by
15the Superintendent; one representative of a statewide
16association representing food retailers appointed by the
17Superintendent; and one representative of a statewide
18association representing retail merchants appointed by the
19Superintendent.
20    Members of the Study Committee shall be appointed within 30
21days after the effective date of this amendatory Act of the
2297th General Assembly. No later than 6 months after the
23effective date of this amendatory Act of the 97th General
24Assembly, the Department shall provide to the members of the
25Study Committee the proposed findings and recommendations of
26the study in order to solicit input from the Study Committee.

 

 

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1Within 30 calendar days thereafter, the Study Committee shall
2convene a meeting of the members to discuss the proposed
3findings and recommendations of the study. No later than 15
4calendar days after meeting, the Study Committee shall submit
5to the Department any written changes, additions, or
6corrections the Study Committee wishes the Department to make
7to the study. The Department shall consider the propriety of
8and respond to each change, addition, or correction offered by
9the Study Committee in the study. The Department shall also set
10forth any such change, addition, or correction offered by
11members of the Study Committee and the Department's responses
12thereto in the appendix to the study. No later than 15 calendar
13days after receiving the changes, additions, or corrections
14offered by the Study Committee, the Department shall deliver
15copies of the final study and appendices, if any, to the
16Governor, President of the Senate, Minority Leader of the
17Senate, Speaker of the House of Representatives, Minority
18Leader of the House of Representatives, and each of the members
19of the Study Committee.
20(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
21eff. 12-23-09; 97-464, eff. 10-15-11.)
 
22    (20 ILCS 1605/7.15)
23    Sec. 7.15. Verification for Internet program; security for
24Internet lottery accounts. The Department must establish a
25procedure to verify that an individual is 18 years of age or

 

 

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1older and that the sale of lottery tickets on the Internet is
2limited to transactions that are initiated and received or
3otherwise made exclusively within the State of Illinois, unless
4the federal Department of Justice indicates that it is legal
5for the transactions to originate in states other than
6Illinois. An individual must satisfy the verification
7procedure before he or she may establish one Internet lottery
8account and purchase lottery tickets or shares through the
9Internet pilot program. By rule, including by emergency rule,
10the Department shall establish funding procedures for Internet
11lottery accounts and shall provide a mechanism to prevent the
12unauthorized use of Internet lottery accounts. If any
13participant in the pilot program violates any provisions of
14this amendatory Act of the 96th General Assembly or rule
15established by the Department, the participant's winnings
16shall be forfeited. Such forfeited winnings shall be deposited
17in the Common School Fund.
18(Source: P.A. 96-34, eff. 7-13-09; 96-840, eff. 12-23-09.)
 
19    (20 ILCS 1605/14.4 new)
20    Sec. 14.4. Investigators.
21    (a) The Department has the power to appoint investigators
22to conduct investigations, searches, seizures, arrests, and
23other duties required to enforce the provisions of this Act and
24prevent the perpetration of fraud upon the Department or the
25public. These investigators have and may exercise all the

 

 

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1powers of peace officers solely for the purpose of ensuring the
2integrity of the lottery games operated by the Department.
3    (b) The Superintendent must authorize to each investigator
4employed under this Section and to any other employee of the
5Department exercising the powers of a peace officer a distinct
6badge that, on its face, (i) clearly states that the badge is
7authorized by the Department and (ii) contains a unique
8identifying number. No other badge shall be authorized by the
9Department.
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".