Illinois General Assembly - Full Text of SB1955
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Full Text of SB1955  98th General Assembly


Sen. Terry Link

Filed: 4/8/2013





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2    AMENDMENT NO. ______. Amend Senate Bill 1955 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Lottery Law is amended by changing
5Sections 3 and 7.12 as follows:
6    (20 ILCS 1605/3)  (from Ch. 120, par. 1153)
7    Sec. 3. For the purposes of this Act:
8    a. "Lottery" or "State Lottery" means the lottery or
9lotteries established and operated pursuant to this Act.
10    b. "Board" means the Lottery Control Board created by this
12    c. "Department" means the Department of the Lottery.
13    d. (Blank).
14    e. "Chairman" means the Chairman of the Lottery Control
16    f. "Multi-state game directors" means such persons,



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1including the Superintendent, as may be designated by an
2agreement between the Department and one or more additional
3lotteries operated under the laws of another state or states.
4    g. (Blank).
5    h. "Superintendent" means the Superintendent of the
6Department of the Lottery.
7    i. "Management agreement" means an agreement or contract
8between the Department on behalf of the State with a private
9manager, as an independent contractor, whereby the private
10manager provides management services to the Lottery in exchange
11for compensation that may consist of, among other things, a fee
12for services and a performance-based bonus of no more than 5%
13of Lottery profits so long as the Department continues to
14exercise actual control over all significant business
15decisions made by the private manager as set forth in Section
17    j. "Person" means any individual, firm, association, joint
18venture, partnership, estate, trust, syndicate, fiduciary,
19corporation, or other legal entity, group, or combination.
20    k. "Private manager" means a person that provides
21management services to the Lottery on behalf of the Department
22under a management agreement.
23    l. "Profits" means total revenues accruing from the sale of
24lottery tickets or shares and related proceeds minus (1) the
25payment of prizes and retailer bonuses and (2) the payment of
26costs incurred in the operation and administration of the



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1lottery, excluding costs of services directly rendered by a
2private manager.
3    m. "Chief Procurement Officer" means the Chief Procurement
4Officer provided for under paragraph (4) of subsection (a) of
5Section 10-20 of the Illinois Procurement Code.
6    n. "Draw-based games" means games where a series of numbers
7or characters are determined to be the winning numbers or
8characters by a mechanical or computerized random number
9generator at a drawing time specified by the Department.
10(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
11eff. 12-23-09; 97-464, eff. 8-19-11.)
12    (20 ILCS 1605/7.12)
13    Sec. 7.12. Internet pilot program.
14    (a) The General Assembly finds that:
15        (1) the consumer market in Illinois has changed since
16    the creation of the Illinois State Lottery in 1974;
17        (2) the Internet has become an integral part of
18    everyday life for a significant number of Illinois
19    residents not only in regards to their professional life,
20    but also in regards to personal business and communication;
21    and
22        (3) the current practices of selling lottery tickets
23    does not appeal to the new form of market participants who
24    prefer to make purchases on the Internet at their own
25    convenience.



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



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



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1to implement and administer the program pursuant to the
2management agreement entered into under Section 9.1 and in a
3manner consistent with the provisions of this Section.
4    The pilot program shall last for not less than 36 months,
5but not more than 48 months from the date of its initial
7    Nothing in this Section shall be construed as prohibiting
8the Department from implementing and operating a website portal
9whereby individuals who are 18 years of age or older with an
10Illinois mailing address may apply to purchase lottery tickets
11via subscription. Nothing in this Section shall also be
12construed as prohibiting the sale of Lotto, Mega Millions, and
13Powerball and other draw-based games by a lottery licensee
14pursuant to the Department's rules.
15    (c) There is created the Internet Lottery Study Committee
16as an advisory body within the Department. The Department shall
17conduct a study to determine the impact of the Internet pilot
18program on lottery licensees. The Department shall also
19determine the feasibility of the sale of stored value cards by
20lottery licensees as a non-exclusive option for use by
21individuals 18 years of age or older who purchase tickets for
22authorized lottery games in the Internet pilot program. For the
23purposes of this study, it is anticipated that the stored value
24cards will have, but need not be limited to, the following
25characteristics: (1) the cards will be available only to
26individuals 18 years of age and older; (2) the cards will be



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



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1    the use of stored value cards and resulting reduced debt
2    issues;
3        (7) the feasibility of the utilization of existing
4    Lottery machines to dispense stored value cards;
5        (8) the technological, programming, and security
6    requirements to make stored value cards an appropriate
7    sales alternative; and
8        (9) the cost and project time estimates for
9    implementation, including adaptation of existing Lottery
10    machines, programming, and technology enhancements and
11    impact to operations.
12    The Study Committee shall consist of the Superintendent or
13his or her designee; the chief executive officer of the
14Lottery's private manager or his or her designee; a
15representative appointed by the Governor's Office; 2
16representatives of the lottery licensee community appointed by
17the Superintendent; one representative of a statewide
18association representing food retailers appointed by the
19Superintendent; and one representative of a statewide
20association representing retail merchants appointed by the
22    Members of the Study Committee shall be appointed within 30
23days after the effective date of this amendatory Act of the
2497th General Assembly. No later than 6 months after the
25effective date of this amendatory Act of the 97th General
26Assembly, the Department shall provide to the members of the



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1Study Committee the proposed findings and recommendations of
2the study in order to solicit input from the Study Committee.
3Within 30 calendar days thereafter, the Study Committee shall
4convene a meeting of the members to discuss the proposed
5findings and recommendations of the study. No later than 15
6calendar days after meeting, the Study Committee shall submit
7to the Department any written changes, additions, or
8corrections the Study Committee wishes the Department to make
9to the study. The Department shall consider the propriety of
10and respond to each change, addition, or correction offered by
11the Study Committee in the study. The Department shall also set
12forth any such change, addition, or correction offered by
13members of the Study Committee and the Department's responses
14thereto in the appendix to the study. No later than 15 calendar
15days after receiving the changes, additions, or corrections
16offered by the Study Committee, the Department shall deliver
17copies of the final study and appendices, if any, to the
18Governor, President of the Senate, Minority Leader of the
19Senate, Speaker of the House of Representatives, Minority
20Leader of the House of Representatives, and each of the members
21of the Study Committee.
22(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
23eff. 12-23-09; 97-464, eff. 10-15-11; 97-1121, eff.