Full Text of HB0607 96th General Assembly
HB0607enr 96TH GENERAL ASSEMBLY
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| AN ACT concerning State government.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Lottery Law is amended by changing | 5 |
| Sections 3, 7.12, 7.15, and 9.1 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 | 9 |
| lotteries
established and operated pursuant to this Act. | 10 |
| b. "Board" means the Lottery Control Board created by this | 11 |
| Act. | 12 |
| c. "Department" means the Department of Revenue. | 13 |
| d. "Director" means the Director of Revenue. | 14 |
| e. "Chairman" means the Chairman of the Lottery Control | 15 |
| Board. | 16 |
| f. "Multi-state game directors" means such persons, | 17 |
| including the
Superintendent, as may be designated by an
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| agreement between the Division and one or more additional
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| lotteries operated under the laws of another state or states. | 20 |
| g. "Division" means the Division of the State Lottery of | 21 |
| the Department of Revenue.
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| h. "Superintendent" means the Superintendent of the | 23 |
| Division of the State Lottery of the Department of Revenue.
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| i. "Management agreement" means an agreement or contract | 2 |
| between the Department on behalf of the State with a private | 3 |
| manager, as an independent contractor, whereby the private | 4 |
| manager provides management services to the Lottery in exchange | 5 |
| for compensation that may consist of, among other things, a fee | 6 |
| for services and a performance-based bonus of the receipt of no | 7 |
| more than 5% of Lottery profits so long as the Department | 8 |
| continues to exercise actual control over all significant | 9 |
| business decisions made by the private manager as set forth in | 10 |
| Section 9.1. | 11 |
| j. "Person" means any individual, firm, association, joint | 12 |
| venture, partnership, estate, trust, syndicate, fiduciary, | 13 |
| corporation, or other legal entity, group, or combination. | 14 |
| k. "Private manager" means a person that provides | 15 |
| management services to the Lottery on behalf of the Department | 16 |
| under a management agreement. | 17 |
| l. "Profits" means total revenues accruing from the sale of | 18 |
| lottery tickets or shares and related proceeds minus (1) the | 19 |
| payment of prizes and retailer bonuses and (2) the payment of | 20 |
| costs incurred in the operation and administration of the | 21 |
| lottery, excluding costs of services directly rendered by a | 22 |
| private manager. | 23 |
| (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.) | 24 |
| (20 ILCS 1605/7.12) | 25 |
| Sec. 7.12. Internet pilot program. The General Assembly |
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| finds that: | 2 |
| (1) the consumer market in Illinois has changed since | 3 |
| the creation of the Illinois State Lottery in 1974; | 4 |
| (2) the Internet has become an integral part of | 5 |
| everyday life for a significant number of Illinois | 6 |
| residents not only in regards to their professional life, | 7 |
| but also in regards to personal business and communication; | 8 |
| and | 9 |
| (3) the current practices of selling lottery tickets | 10 |
| does not appeal to the new form of market participants who | 11 |
| prefer to make purchases on the internet at their own | 12 |
| convenience. | 13 |
| It is the intent of the General Assembly to create an | 14 |
| Internet pilot program for the sale of lottery tickets to | 15 |
| capture this new form of market participant. | 16 |
| The Department shall create a pilot program that allows an | 17 |
| individual 18 years of age or older to purchase lottery tickets | 18 |
| or shares on the Internet without using a Lottery retailer with | 19 |
| on-line status, as those terms are defined by rule. The | 20 |
| Department shall restrict the sale of lottery tickets on the | 21 |
| Internet to transactions initiated and received or otherwise | 22 |
| made exclusively within the State of Illinois. The Department | 23 |
| shall adopt rules necessary for the administration of this | 24 |
| program. These rules shall include requirements for marketing | 25 |
| of the Lottery to infrequent players. The provisions of this | 26 |
| Act and the rules adopted under this Act shall apply to the |
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| sale of lottery tickets or shares under this program. | 2 |
| Before beginning the pilot program, the Department of | 3 |
| Revenue must submit a request to the United States Department | 4 |
| of Justice for review of the State's plan to implement a pilot | 5 |
| program for the sale of lottery tickets on the Internet and its | 6 |
| propriety under federal law. The Department shall implement the | 7 |
| Internet pilot program only if the Department of Justice does | 8 |
| not object to the implementation of the program within a | 9 |
| reasonable period of time after its review. seek a clarifying | 10 |
| memorandum from the federal Department of Justice that it is | 11 |
| legal for Illinois residents and non-Illinois residents to | 12 |
| purchase and the private company to sell lottery tickets on the | 13 |
| Internet on behalf of the State of Illinois under the federal | 14 |
| Unlawful Internet Gambling Enforcement Act of 2006. | 15 |
| The Department shall limit the individuals authorized to | 16 |
| purchase lottery tickets on the Internet to individuals who are | 17 |
| 18 years of age or older and Illinois residents, unless the | 18 |
| clarifying memorandum from the federal Department of Justice | 19 |
| indicates that it is legal for non-Illinois residents to | 20 |
| purchase lottery tickets on the Internet, and shall set a | 21 |
| limitation on the monthly purchases that may be made through | 22 |
| any one individual's lottery account. The Department is | 23 |
| obligated to implement the pilot program set forth in this | 24 |
| Section and Sections 7.15 and , 7.16 , and 7.17 only at such | 25 |
| time, and to such extent, that the Department of Justice does | 26 |
| not object to the implementation of the program within a |
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| reasonable period of time after its review. While the Illinois | 2 |
| Lottery may only offer Lotto and Mega Millions games through | 3 |
| the pilot program, the Department shall request review from the | 4 |
| federal Department of Justice for the Illinois Lottery to sell | 5 |
| lottery tickets on the Internet on behalf of the State of | 6 |
| Illinois that are not limited to just these games issues a | 7 |
| clarifying memorandum finding such program to be permitted | 8 |
| under federal law. Only Lotto and Mega Million games offered by | 9 |
| the Illinois Lottery may be offered through the pilot program . | 10 |
| The Department shall authorize the private manager to | 11 |
| implement and administer the program pursuant to the management | 12 |
| agreement entered into under Section 9.1 and in a manner | 13 |
| consistent with the provisions of this Section. If a private | 14 |
| manager has not been selected pursuant to Section 9.1 at the | 15 |
| time the Department is obligated to implement the pilot | 16 |
| program, then the Department shall not proceed with the pilot | 17 |
| program until after the selection of the private manager, at | 18 |
| which time the Department shall authorize the private manager | 19 |
| to implement and administer the program pursuant to the | 20 |
| management agreement entered into under Section 9.1 and in a | 21 |
| manner consistent with the provisions of this Section. The | 22 |
| pilot program must be conducted pursuant to a contract with a | 23 |
| private vendor that has the expertise, technical capability, | 24 |
| and knowledge of the Illinois lottery marketplace to conduct | 25 |
| the program. The Department of the Lottery must seek | 26 |
| cooperation from existing vendors for the program. |
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| The pilot program shall last for not less than 36 months, | 2 |
| but not more than 48 months from the date of its initial | 3 |
| operation . | 4 |
| Nothing in this Section shall be construed as prohibiting | 5 |
| the Department from implementing and operating a website portal | 6 |
| whereby individuals who are 18 years of age or older with an | 7 |
| Illinois mailing address may apply to purchase lottery tickets | 8 |
| via subscription. | 9 |
| (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.) | 10 |
| (20 ILCS 1605/7.15) | 11 |
| Sec. 7.15. Verification of age and residency for Internet | 12 |
| program; security for Internet lottery accounts. The | 13 |
| Department must establish a procedure to verify that an | 14 |
| individual is 18 years of age or older and that the sale of | 15 |
| lottery tickets on the Internet is limited to transactions that | 16 |
| are initiated and received or otherwise made exclusively within | 17 |
| the State of Illinois, unless the federal Department of Justice | 18 |
| indicates that it is legal for the transactions to originate in | 19 |
| states other than Illinois. An individual must satisfy the | 20 |
| verification procedure before he or she an Illinois resident | 21 |
| before he or she may establish one Internet lottery account and | 22 |
| purchase lottery tickets or shares through the Internet pilot | 23 |
| program. Non-residents of Illinois shall only be allowed to | 24 |
| participate in the pilot program if the federal Department of | 25 |
| Justice indicates that it is legal for non-residents to do so. |
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| By rule, the Department shall establish funding procedures for | 2 |
| Internet lottery accounts and shall provide a mechanism for | 3 |
| each Internet lottery account to have a personal identification | 4 |
| number to prevent the unauthorized use of Internet lottery | 5 |
| accounts. If any participant in the pilot program violates any | 6 |
| provisions of this amendatory Act of the 96th General Assembly | 7 |
| or rule established by the Department, the participant's all | 8 |
| such winnings shall be forfeited. Such forfeited winnings shall | 9 |
| be deposited in the Common School Fund. | 10 |
| (Source: P.A. 96-34, eff. 7-13-09.) | 11 |
| (20 ILCS 1605/9.1) | 12 |
| Sec. 9.1. Private manager and management agreement. | 13 |
| (a) As used in this Section: | 14 |
| "Offeror" means a person or group of persons that responds | 15 |
| to a request for qualifications under this Section. | 16 |
| "Request for qualifications" means all materials and | 17 |
| documents prepared by the Department to solicit the following | 18 |
| from offerors: | 19 |
| (1) Statements of qualifications. | 20 |
| (2) Proposals to enter into a management agreement , | 21 |
| including the identity of any prospective vendor or vendors | 22 |
| that the offeror intends to initially engage to assist the | 23 |
| offeror in performing its obligations under the management | 24 |
| agreement . | 25 |
| "Final offer" means the last proposal submitted by an |
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| offeror in response to the request for qualifications, | 2 |
| including the identity of any prospective vendor or vendors | 3 |
| that the offeror intends to initially engage to assist the | 4 |
| offeror in performing its obligations under the management | 5 |
| agreement. | 6 |
| "Final offeror" means the offeror ultimately selected by | 7 |
| the Governor to be the private manager for the Lottery under | 8 |
| subsection (h) of this Section. | 9 |
| (b) By September 15, 2010 March 1, 2010 , the Governor | 10 |
| Department shall select enter into a management agreement with | 11 |
| a private manager for the total management of the Lottery with | 12 |
| integrated functions, such as lottery game design, supply of | 13 |
| goods and services, and advertising and as specified in this | 14 |
| Section. | 15 |
| (c) Pursuant to the terms of this subsection, the | 16 |
| Department shall endeavor to expeditiously terminate the | 17 |
| existing contracts in support of the Lottery in effect on the | 18 |
| effective date of this amendatory Act of the 96th General | 19 |
| Assembly in connection with the selection of the private | 20 |
| manager. As part of its obligation to terminate these contracts | 21 |
| and select the private manager, the Department shall establish | 22 |
| a mutually agreeable timetable to transfer the functions of | 23 |
| existing contractors to the private manager so that existing | 24 |
| Lottery operations are not materially diminished or impaired | 25 |
| during the transition. To that end, the Department shall do the | 26 |
| following: |
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| (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 | 16 |
| Lottery in effect on the effective date of this amendatory Act | 17 |
| of the 96th General Assembly are not subject to termination as | 18 |
| provided for in this subsection (c), then the Department may | 19 |
| include a provision in the contract with the private manager | 20 |
| specifying a mutually agreeable methodology for incorporation. | 21 |
| (c-5) The Department shall include provisions in the | 22 |
| management agreement whereby the private manager shall, for a | 23 |
| fee, and pursuant to a contract negotiated with the Department | 24 |
| (the "Employee Use Contract"), utilize the services of current | 25 |
| Department employees to assist in the administration and | 26 |
| operation of the Lottery. The Department shall be the employer |
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| of all such bargaining unit employees assigned to perform such | 2 |
| work for the private manager, and such employees shall be State | 3 |
| employees, as defined by the Personnel Code. Department | 4 |
| employees shall operate under the same employment policies, | 5 |
| rules, regulations, and procedures, as other employees of the | 6 |
| Department. In addition, neither historical representation | 7 |
| rights under the Illinois Public Labor Relations Act, nor | 8 |
| existing collective bargaining agreements, shall be disturbed | 9 |
| by the management agreement with the private manager for the | 10 |
| management of the Lottery. | 11 |
| (d) The management agreement with the private manager shall | 12 |
| include 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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| 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 with a | 18 |
| percentage, not to exceed 5%, of Lottery profits in | 19 |
| consideration for managing the Lottery, including terms | 20 |
| that may provide the private manager with an increase in | 21 |
| compensation if Lottery revenues grow by a specified | 22 |
| percentage in a given year. | 23 |
| (6) (Blank). | 24 |
| (7) A provision requiring the deposit of all Lottery | 25 |
| proceeds to be deposited into the State Lottery Fund. | 26 |
| (8) A provision requiring the private manager to locate |
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| 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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| (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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| 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 |
| (Blank). | 24 |
| (20) The transition of rights and obligations, | 25 |
| including any associated equipment or other assets used in | 26 |
| the operation of the Lottery, from the manager to any |
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| successor manager of the lottery, including the | 2 |
| Department, following the termination of or foreclosure | 3 |
| upon the management agreement. | 4 |
| (21) Right of use of copyrights, trademarks, and | 5 |
| service marks held by the Department in the name of the | 6 |
| State. The agreement must provide that any use of them by | 7 |
| the manager shall only be for the purpose of fulfilling its | 8 |
| obligations under the management agreement during the term | 9 |
| of the agreement. | 10 |
| (e) Notwithstanding any other law to the contrary, the | 11 |
| Department shall select a private manager through a competitive | 12 |
| request for qualifications process consistent with Section | 13 |
| 20-35 of the Illinois Procurement Code, which shall take into | 14 |
| account: | 15 |
| (1) the offeror's ability to market the Lottery to | 16 |
| those residents who are new, infrequent, or lapsed players | 17 |
| of the Lottery, especially those who are most likely to | 18 |
| make regular purchases on the Internet; | 19 |
| (2) the offeror's ability to address the State's | 20 |
| concern with the social effects of gambling on those who | 21 |
| can least afford to do so; | 22 |
| (3) the offeror's ability to provide the most | 23 |
| successful management of the Lottery for the benefit of the | 24 |
| people of the State based on current and past business | 25 |
| practices or plans of the offeror; and | 26 |
| (4) the offeror's poor or inadequate past performance |
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| in servicing, equipping, operating or managing a lottery on | 2 |
| behalf of Illinois, another State or foreign government and | 3 |
| attracting persons who are not currently regular players of | 4 |
| a lottery. | 5 |
| (f) The Department may retain the services of an advisor or | 6 |
| advisors with significant experience in financial services or | 7 |
| the management, operation, and procurement of goods, services, | 8 |
| and equipment for a government-run lottery to assist in the | 9 |
| preparation of the terms of the request for qualifications and | 10 |
| selection of the private manager . Any prospective advisor | 11 |
| seeking to provide services under this subsection (f) shall | 12 |
| disclose any material business or financial relationship | 13 |
| during the past 3 years with any potential offeror, or with a | 14 |
| contractor or subcontractor presently providing goods, | 15 |
| services, or equipment to the Department to support the | 16 |
| Lottery. The Department shall evaluate the material business or | 17 |
| financial relationship of each prospective advisor. The | 18 |
| Department shall not select any prospective advisor with a | 19 |
| substantial business or financial relationship that the | 20 |
| Department deems to impair the objectivity of the services to | 21 |
| be provided by the prospective advisor. During the course of | 22 |
| the advisor's engagement by the Department, and for a period of | 23 |
| one year thereafter, the advisor shall not enter into any | 24 |
| business or financial relationship with any offeror or any | 25 |
| vendor identified to assist an offeror in performing its | 26 |
| obligations under the management agreement. Any advisor |
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| retained by the Department shall be disqualified from being an | 2 |
| offeror. No advisor or advisors retained may have any prior or | 3 |
| present affiliation with any potential offeror, or with a | 4 |
| contractor or subcontractor presently providing goods, | 5 |
| services or equipment to the Department to support the Lottery.
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| The Department shall not include terms in the request for | 7 |
| qualifications that provide a material provides an advantage | 8 |
| whether directly or indirectly to any potential offeror, or any | 9 |
| contractor or subcontractor presently providing goods, | 10 |
| services , or equipment to the Department to support the | 11 |
| Lottery, including terms contained in previous a contractor or | 12 |
| subcontractor's responses to requests for proposals or | 13 |
| qualifications submitted to Illinois, another State or foreign | 14 |
| government when those terms are uniquely associated with a | 15 |
| particular potential offeror, contractor, or subcontractor . | 16 |
| The request for proposals offered by the Department on December | 17 |
| 22, 2008 as "LOT08GAMESYS" and reference number "22016176" is | 18 |
| declared void. | 19 |
| (g) The Department shall select at least 2 offerors as | 20 |
| finalists to potentially serve as the private manager no later | 21 |
| than August 9, 2010 February 1, 2010 . Upon making preliminary | 22 |
| selections, the Department shall schedule a public hearing on | 23 |
| the finalists' proposals and provide public notice of the | 24 |
| hearing at least 7 calendar days before the hearing. The notice | 25 |
| must include all of the following: | 26 |
| (1) The date, time, and place of the hearing. |
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| (2) The subject matter of the hearing. | 2 |
| (3) A brief description of the management agreement to | 3 |
| be awarded. | 4 |
| (4) The identity of the offerors that have been | 5 |
| selected as finalists to serve as the private manager. | 6 |
| (5) The address and telephone number of the Department. | 7 |
| (h) At the public hearing, the Department shall (i) provide | 8 |
| sufficient time for each finalist to present and explain its | 9 |
| proposal to the Department and the Governor or the Governor's | 10 |
| designee, including an opportunity to respond to questions | 11 |
| posed by the Department, Governor, or designee and (ii) allow | 12 |
| the public and non-selected offerors to comment on the | 13 |
| presentations. The Governor or a designee shall attend the | 14 |
| public hearing. After the public hearing, the Department shall | 15 |
| have 14 calendar days to recommend to the Governor whether a | 16 |
| management agreement should be entered into with a particular | 17 |
| finalist. After reviewing the Department's recommendation, the | 18 |
| Governor may accept or reject the Department's recommendation, | 19 |
| and shall select a final offeror as the private manager by | 20 |
| publication of a notice in the Illinois Procurement Bulletin on | 21 |
| or before September 15, 2010 . The Governor shall include in the | 22 |
| notice a detailed explanation and the reasons why the final | 23 |
| offeror is superior to other offerors and will provide | 24 |
| management services in a manner that best achieves the | 25 |
| objectives of this Section. The Governor shall designate a | 26 |
| final offeror as the private manager with sufficient time for |
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| the Department to enter into a management agreement on or | 2 |
| before March 1, 2010. The Governor shall also sign the | 3 |
| management agreement with the private manager. | 4 |
| (i) Any action to contest the private manager selected by | 5 |
| the Governor validity of a management agreement entered into | 6 |
| under this Section must be brought within 7 14 calendar days | 7 |
| after the publication of the notice of the designation of the | 8 |
| private manager as provided in subsection (h) of this Section. | 9 |
| (j) The Lottery shall remain, for so long as a private | 10 |
| manager manages the Lottery in accordance with provisions of | 11 |
| this Act, a Lottery conducted by the State, and the State shall | 12 |
| not be authorized to sell or transfer the Lottery to a third | 13 |
| party. | 14 |
| (k) Any tangible personal property used exclusively in | 15 |
| connection with the lottery that is owned by the Department and | 16 |
| leased to the private manager shall be owned by the Department | 17 |
| in the name of the State and shall be considered to be public | 18 |
| property devoted to an essential public and governmental | 19 |
| function. | 20 |
| (l) The Department may exercise any of its powers under | 21 |
| this Section or any other law as necessary or desirable for the | 22 |
| execution of the Department's powers under this Section. | 23 |
| (m) Neither this Section nor any management agreement | 24 |
| entered into under this Section prohibits the General Assembly | 25 |
| from authorizing forms of gambling that are not in direct | 26 |
| competition with the Lottery. |
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| (n) The private manager shall be subject to a complete | 2 |
| investigation in the third, seventh, and tenth years of the | 3 |
| agreement (if the agreement is for a 10-year term) by the | 4 |
| Department in cooperation with the Auditor General to determine | 5 |
| whether the private manager has complied with this Section and | 6 |
| the management agreement. The private manager shall bear the | 7 |
| cost of an investigation or reinvestigation of the private | 8 |
| manager under this subsection. | 9 |
| (o) The powers conferred by this Section are in addition | 10 |
| and supplemental to the powers conferred by any other law. If | 11 |
| any other law or rule is inconsistent with this Section, | 12 |
| including, but not limited to, provisions of the Illinois | 13 |
| Procurement Code, then this Section controls as to any | 14 |
| management agreement entered into under this Section. This | 15 |
| Section and any rules adopted under this Section contain full | 16 |
| and complete authority for a management agreement between the | 17 |
| Department and a private manager. No law, procedure, | 18 |
| proceeding, publication, notice, consent, approval, order, or | 19 |
| act by the Department or any other officer, Department, agency, | 20 |
| or instrumentality of the State or any political subdivision is | 21 |
| required for the Department to enter into a management | 22 |
| agreement under this Section. This Section contains full and | 23 |
| complete authority for the Department to approve any contracts | 24 |
| subcontracts entered into by a private manager with a vendor | 25 |
| providing goods, services, or both goods and services to the | 26 |
| private manager under the terms of the a management agreement. |
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| Except as provided in Sections 21.2, 21.5, 21.6, 21.7, and | 2 |
| 21.8, the Department shall distribute all proceeds of lottery | 3 |
| tickets and shares sold in the following priority and manner: | 4 |
| (1) The payment of prizes and retailer bonuses. | 5 |
| (2) The payment of costs incurred in the operation and | 6 |
| administration of the Lottery, including the payment of | 7 |
| sums due to the private manager under the management | 8 |
| agreement with the Department and payment of sums due to | 9 |
| the private vendor for lottery tickets and shares sold on | 10 |
| the Internet via the pilot program as compensation under | 11 |
| its contract with the Department. | 12 |
| (3) On the last day of each month or as soon thereafter | 13 |
| as possible, the State Comptroller shall direct and the | 14 |
| State Treasurer shall transfer from the Lottery Fund to the | 15 |
| Common School Fund an amount that is equal to the proceeds | 16 |
| transferred in the corresponding month of fiscal year 2009, | 17 |
| as adjusted for inflation, to the Common School Fund. | 18 |
| (4) On or before the last day of each fiscal year, | 19 |
| deposit any remaining proceeds, subject to payments under | 20 |
| items (1), (2), and (3) into the Capital Projects Fund each | 21 |
| fiscal year. | 22 |
| (Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09.) | 23 |
| Section 10. The Illinois Procurement Code is amended by | 24 |
| changing Section 1-10 as follows:
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| (30 ILCS 500/1-10)
| 2 |
| Sec. 1-10. Application.
| 3 |
| (a) This Code applies only to procurements for which | 4 |
| contractors were first
solicited on or after July 1, 1998. This | 5 |
| Code shall not be construed to affect
or impair any contract, | 6 |
| or any provision of a contract, entered into based on a
| 7 |
| solicitation prior to the implementation date of this Code as | 8 |
| described in
Article 99, including but not limited to any | 9 |
| covenant entered into with respect
to any revenue bonds or | 10 |
| similar instruments.
All procurements for which contracts are | 11 |
| solicited between the effective date
of Articles 50 and 99 and | 12 |
| July 1, 1998 shall be substantially in accordance
with this | 13 |
| Code and its intent.
| 14 |
| (b) This Code shall apply regardless of the source of the | 15 |
| funds with which
the contracts are paid, including federal | 16 |
| assistance moneys.
This Code shall
not apply to:
| 17 |
| (1) Contracts between the State and its political | 18 |
| subdivisions or other
governments, or between State | 19 |
| governmental bodies except as specifically
provided in | 20 |
| this Code.
| 21 |
| (2) Grants, except for the filing requirements of | 22 |
| Section 20-80.
| 23 |
| (3) Purchase of care.
| 24 |
| (4) Hiring of an individual as employee and not as an | 25 |
| independent
contractor, whether pursuant to an employment | 26 |
| code or policy or by contract
directly with that |
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| individual.
| 2 |
| (5) Collective bargaining contracts.
| 3 |
| (6) Purchase of real estate, except that notice of this | 4 |
| type of contract with a value of more than $25,000 must be | 5 |
| published in the Procurement Bulletin within 7 days after | 6 |
| the deed is recorded in the county of jurisdiction. The | 7 |
| notice shall identify the real estate purchased, the names | 8 |
| of all parties to the contract, the value of the contract, | 9 |
| and the effective date of the contract.
| 10 |
| (7) Contracts necessary to prepare for anticipated | 11 |
| litigation, enforcement
actions, or investigations, | 12 |
| provided
that the chief legal counsel to the Governor shall | 13 |
| give his or her prior
approval when the procuring agency is | 14 |
| one subject to the jurisdiction of the
Governor, and | 15 |
| provided that the chief legal counsel of any other | 16 |
| procuring
entity
subject to this Code shall give his or her | 17 |
| prior approval when the procuring
entity is not one subject | 18 |
| to the jurisdiction of the Governor.
| 19 |
| (8) Contracts for
services to Northern Illinois | 20 |
| University by a person, acting as
an independent | 21 |
| contractor, who is qualified by education, experience, and
| 22 |
| technical ability and is selected by negotiation for the | 23 |
| purpose of providing
non-credit educational service | 24 |
| activities or products by means of specialized
programs | 25 |
| offered by the university.
| 26 |
| (9) Procurement expenditures by the Illinois |
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| Conservation Foundation
when only private funds are used.
| 2 |
| (c) This Code does not apply to the electric power | 3 |
| procurement process provided for under Section 1-75 of the | 4 |
| Illinois Power Agency Act and Section 16-111.5 of the Public | 5 |
| Utilities Act. | 6 |
| (d) Except for Section 20-160 and Article 50 of this Code, | 7 |
| and as expressly required by Section 9.1 of the Illinois | 8 |
| Lottery Law, the provisions of this Code do not apply to the | 9 |
| procurement process provided for under Section 9.1 of the | 10 |
| Illinois Lottery Law. | 11 |
| (Source: P.A. 95-481, eff. 8-28-07; 95-615, eff. 9-11-07; | 12 |
| 95-876, eff. 8-21-08.)
| 13 |
| (20 ILCS 1605/7.17 rep.) | 14 |
| Section 15. The Illinois Lottery Law is amended by | 15 |
| repealing Section 7.17.
| 16 |
| Section 99. Effective date. This Act takes effect upon | 17 |
| becoming law.
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|