97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1601

 

Introduced 2/15/2011, by Rep. LaShawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 1605/19  from Ch. 120, par. 1169
20 ILCS 1605/20  from Ch. 120, par. 1170
20 ILCS 1605/20.1  from Ch. 120, par. 1170.1
20 ILCS 1605/20.3 new

    Amends the Illinois Lottery Law. Creates the Lottery Supports Schools Fund. Provides that certain lottery revenues shall be deposited into the Fund. Provides that moneys in the fund shall be distributed to school districts based on the district's percentage of lottery sales. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Lottery Law is amended by changing
5Sections 19, 20, and 20.1 and by adding Section 20.3 as
6follows:
 
7    (20 ILCS 1605/19)  (from Ch. 120, par. 1169)
8    Sec. 19. The Division shall establish an appropriate period
9for the claiming of prizes for each lottery game offered. Each
10claim period shall be stated in game rules and written play
11instructions issued by the Superintendent in accordance with
12Section 7.1 of this Act. Written play instructions shall be
13made available to all players through sales agents licensed to
14sell game tickets or shares. Prizes for lottery games which
15involve the purchase of a physical lottery ticket may be
16claimed only by presentation of a valid winning lottery ticket
17that matches validation records on file with the Lottery; no
18claim may be honored which is based on the assertion that the
19ticket was lost or stolen. No lottery ticket which has been
20altered, mutilated, or fails to pass validation tests shall be
21deemed to be a winning ticket.
22    If no claim is made for the money within the established
23claim period, the prize may be included in the prize pool of

 

 

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

 

 

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1pursuant to law. Interest earnings of the State Lottery Fund
2shall be credited to the Lottery Supports Schools Common School
3Fund.
4    (b) The receipt and distribution of moneys under Section
521.5 of this Act shall be in accordance with Section 21.5.
6    (c) The receipt and distribution of moneys under Section
721.6 of this Act shall be in accordance with Section 21.6.
8    (d) The receipt and distribution of moneys under Section
921.7 of this Act shall be in accordance with Section 21.7.
10    (e) The receipt and distribution of moneys under Section
1121.8 of this Act shall be in accordance with Section 21.8.
12(Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05;
1395-331, eff. 8-21-07; 95-673, eff. 10-11-07; 95-674, eff.
1410-11-07; 95-876, eff. 8-21-08.)
 
15    (20 ILCS 1605/20.1)  (from Ch. 120, par. 1170.1)
16    Sec. 20.1. Department account.
17    (a) The Department is authorized to pay validated prizes up
18to $25,000 from funds held by the Department in an account
19separate and apart from all public moneys of the State. Moneys
20in this account shall be administered by the Director
21exclusively for the purposes of issuing payments to prize
22winners authorized by this Section. Moneys in this account
23shall be deposited by the Department into the Public
24Treasurers' Investment Pool established under Section 17 of the
25State Treasurer Act. The Department shall submit vouchers from

 

 

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1time to time as needed for reimbursement of this account from
2moneys appropriated for prizes from the State Lottery Fund.
3Investment income earned from this account shall be deposited
4monthly by the Department into the Lottery Supports Schools
5Common School Fund. The Department shall file quarterly fiscal
6reports specifying the activity of this account as required
7under Section 16 of the State Comptroller Act, and shall file
8quarterly with the General Assembly, the Auditor General, the
9Comptroller, and the State Treasurer a report indicating the
10costs associated with this activity.
11    (b) The Department is authorized to enter into an
12interagency agreement with the Office of the Comptroller or any
13other State agency to establish responsibilities, duties, and
14procedures for complying with the Comptroller's Offset System
15under Section 10.05 of the State Comptroller Act. All federal
16and State tax reporting and withholding requirements relating
17to prize winners under this Section shall be the responsibility
18of the Department. Moneys from this account may not be used to
19pay amounts to deferred prize winners. Moneys may not be
20transferred from the State Lottery Fund to this account for
21payment of prizes under this Section until procedures are
22implemented to comply with the Comptroller's Offset System and
23sufficient internal controls are in place to validate prizes.
24(Source: P.A. 87-1197; 88-676, eff. 12-14-94.)
 
25    (20 ILCS 1605/20.3 new)

 

 

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1    Sec. 20.3. Lottery Supports Schools Fund. There is created
2a Fund to be known as the Lottery Supports Schools Fund, which
3is a non-appropriated trust fund held outside of the State
4treasury. The Fund shall consist of moneys paid into it by the
5Division as provided in this Law. The Illinois Gaming Board
6shall certify each month to the State Board of Education the
7proportion of lottery sales in each school district in relation
8to statewide lottery sales. The moneys in the Lottery Supports
9Schools Fund must be distributed monthly by the State Board of
10Education to each school district based upon that school
11district's portion of statewide lottery sales.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.