Illinois General Assembly - Full Text of SB0513
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Full Text of SB0513  99th General Assembly


Rep. Ed Sullivan

Filed: 3/31/2016





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2    AMENDMENT NO. ______. Amend Senate Bill 513 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Lottery Law is amended by changing
5Section 7.12 as follows:
6    (20 ILCS 1605/7.12)
7    Sec. 7.12. Internet pilot program.
8    (a) The General Assembly finds that:
9        (1) the consumer market in Illinois has changed since
10    the creation of the Illinois State Lottery in 1974;
11        (2) the Internet has become an integral part of
12    everyday life for a significant number of Illinois
13    residents not only in regards to their professional life,
14    but also in regards to personal business and communication;
15    and
16        (3) the current practices of selling lottery tickets



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



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1Internet pilot program only if the Department of Justice does
2not object to the implementation of the program within a
3reasonable period of time after its review.
4    The Department is obligated to implement the pilot program
5set forth in this Section and Sections 7.15 and 7.16 only at
6such time, and to such extent, that the Department of Justice
7does not object to the implementation of the program within a
8reasonable period of time after its review. While the Illinois
9Lottery may only offer Lotto, Mega Millions, and Powerball
10games through the pilot program, the Department shall request
11review from the federal Department of Justice for the Illinois
12Lottery to sell lottery tickets on the Internet on behalf of
13the State of Illinois that are not limited to just these games.
14    The Department shall authorize the private manager to
15implement and administer the program pursuant to the management
16agreement entered into under Section 9.1 and in a manner
17consistent with the provisions of this Section. If a private
18manager has not been selected pursuant to Section 9.1 at the
19time the Department is obligated to implement the pilot
20program, then the Department shall not proceed with the pilot
21program until after the selection of the private manager, at
22which time the Department shall authorize the private manager
23to implement and administer the program pursuant to the
24management agreement entered into under Section 9.1 and in a
25manner consistent with the provisions of this Section.
26    The pilot program shall last for not less than 36 months,



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



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



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1        (8) the technological, programming, and security
2    requirements to make stored value cards an appropriate
3    sales alternative; and
4        (9) the cost and project time estimates for
5    implementation, including adaptation of existing Lottery
6    machines, programming, and technology enhancements and
7    impact to operations.
8    The Study Committee shall consist of the Director or his or
9her designee; the chief executive officer of the Lottery's
10private manager or his or her designee; a representative
11appointed by the Governor's Office; 2 representatives of the
12lottery licensee community appointed by the Director; one
13representative of a statewide association representing food
14retailers appointed by the Director; and one representative of
15a statewide association representing retail merchants
16appointed by the Director.
17    Members of the Study Committee shall be appointed within 30
18days after the effective date of this amendatory Act of the
1997th General Assembly. No later than 6 months after the
20effective date of this amendatory Act of the 97th General
21Assembly, the Department shall provide to the members of the
22Study Committee the proposed findings and recommendations of
23the study in order to solicit input from the Study Committee.
24Within 30 calendar days thereafter, the Study Committee shall
25convene a meeting of the members to discuss the proposed
26findings and recommendations of the study. No later than 15



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1calendar days after meeting, the Study Committee shall submit
2to the Department any written changes, additions, or
3corrections the Study Committee wishes the Department to make
4to the study. The Department shall consider the propriety of
5and respond to each change, addition, or correction offered by
6the Study Committee in the study. The Department shall also set
7forth any such change, addition, or correction offered by
8members of the Study Committee and the Department's responses
9thereto in the appendix to the study. No later than 15 calendar
10days after receiving the changes, additions, or corrections
11offered by the Study Committee, the Department shall deliver
12copies of the final study and appendices, if any, to the
13Governor, President of the Senate, Minority Leader of the
14Senate, Speaker of the House of Representatives, Minority
15Leader of the House of Representatives, and each of the members
16of the Study Committee.
17(Source: P.A. 97-464, eff. 10-15-11; 97-1121, eff. 8-27-12;
1898-499, eff. 8-16-13.)
19    Section 99. Effective date. This Act takes effect upon
20becoming law.".