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Illinois House Bill HB5229

Illinois 2023-2024 Regular Session

Illinois House Bill HB5229 Compare Versions

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1-HB5229 EngrossedLRB103 38855 AWJ 68992 b HB5229 Engrossed LRB103 38855 AWJ 68992 b
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1+103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5229 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED: 20 ILCS 1605/9.1 Amends the Illinois Lottery Law. Removes a provision requiring the Governor to select a private manager for the total management of the Lottery by September 15, 2010 and provisions requiring the Department of Lottery to endeavor to expeditiously terminate the existing contracts in support of the lottery in effect on July 13, 2009 and transfer those functions to the private manager. Removes a provision allowing the compensation of the private manager to consist of a fee for services and a performance-based bonus as consideration for managing the lottery, including terms that may provide the private manager with an increase in compensation if lottery revenues grow by a specified percentage in a given year. Removes language voiding specified requests for proposal offered by the Department on December 22, 2008. Makes other changes. LRB103 38855 AWJ 68992 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5229 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED: 20 ILCS 1605/9.1 20 ILCS 1605/9.1 Amends the Illinois Lottery Law. Removes a provision requiring the Governor to select a private manager for the total management of the Lottery by September 15, 2010 and provisions requiring the Department of Lottery to endeavor to expeditiously terminate the existing contracts in support of the lottery in effect on July 13, 2009 and transfer those functions to the private manager. Removes a provision allowing the compensation of the private manager to consist of a fee for services and a performance-based bonus as consideration for managing the lottery, including terms that may provide the private manager with an increase in compensation if lottery revenues grow by a specified percentage in a given year. Removes language voiding specified requests for proposal offered by the Department on December 22, 2008. Makes other changes. LRB103 38855 AWJ 68992 b LRB103 38855 AWJ 68992 b A BILL FOR
2+103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5229 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED:
3+20 ILCS 1605/9.1 20 ILCS 1605/9.1
4+20 ILCS 1605/9.1
5+Amends the Illinois Lottery Law. Removes a provision requiring the Governor to select a private manager for the total management of the Lottery by September 15, 2010 and provisions requiring the Department of Lottery to endeavor to expeditiously terminate the existing contracts in support of the lottery in effect on July 13, 2009 and transfer those functions to the private manager. Removes a provision allowing the compensation of the private manager to consist of a fee for services and a performance-based bonus as consideration for managing the lottery, including terms that may provide the private manager with an increase in compensation if lottery revenues grow by a specified percentage in a given year. Removes language voiding specified requests for proposal offered by the Department on December 22, 2008. Makes other changes.
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7+ LRB103 38855 AWJ 68992 b
8+A BILL FOR
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311 1 AN ACT concerning State government.
412 2 Be it enacted by the People of the State of Illinois,
513 3 represented in the General Assembly:
614 4 Section 5. The Illinois Lottery Law is amended by changing
7-5 Sections 7.1, 9.1, 10.1, 10.6, 19, 20, 20.1, 24, and 27 as
8-6 follows:
9-7 (20 ILCS 1605/7.1) (from Ch. 120, par. 1157.1)
10-8 Sec. 7.1. The Department shall promulgate such rules and
11-9 regulations governing the establishment and operation of a
12-10 State lottery as it deems necessary to carry out the purposes
13-11 of this Act. Such rules and regulations shall be subject to the
14-12 provisions of The Illinois Administrative Procedure Act. The
15-13 Department shall issue written game rules, play instructions,
16-14 directives, operations manuals, brochures, or any other
17-15 publications necessary to conduct specific games, as
18-16 authorized by rule by the Department. Any written game rules,
19-17 play instructions, directives, operations manuals, brochures,
20-18 or other game publications issued by the Department that
21-19 relate to a specific lottery game shall be maintained as a
22-20 public record in the Department's principal office, and made
23-21 available for public inspection and copying but shall be
24-22 exempt from the rulemaking procedures of the Illinois
25-23 Administrative Procedure Act. However, when such written
15+5 Section 9.1 as follows:
16+6 (20 ILCS 1605/9.1)
17+7 Sec. 9.1. Private manager and management agreement.
18+8 (a) As used in this Section:
19+9 "Offeror" means a person or group of persons that responds
20+10 to a request for qualifications under this Section.
21+11 "Request for qualifications" means all materials and
22+12 documents prepared by the Department to solicit the following
23+13 from offerors:
24+14 (1) Statements of qualifications.
25+15 (2) Proposals to enter into a management agreement,
26+16 including the identity of any prospective vendor or
27+17 vendors that the offeror intends to initially engage to
28+18 assist the offeror in performing its obligations under the
29+19 management agreement.
30+20 "Final offer" means the last proposal submitted by an
31+21 offeror in response to the request for qualifications,
32+22 including the identity of any prospective vendor or vendors
33+23 that the offeror intends to initially engage to assist the
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34-1 materials contain any policy of general applicability, the
35-2 Department shall formulate and adopt such policy as a rule in
36-3 accordance with the provisions of the Illinois Administrative
37-4 Procedure Act. In addition, the Department shall publish each
38-5 January in the Illinois Register a list of all game-specific
39-6 rules, play instructions, directives, operations manuals,
40-7 brochures, or other game-specific publications issued by the
41-8 Department during the previous year and instructions
42-9 concerning how the public may obtain copies of these materials
43-10 from the Department.
44-11 (Source: P.A. 97-464, eff. 10-15-11.)
45-12 (20 ILCS 1605/9.1)
46-13 Sec. 9.1. Private manager and management agreement.
47-14 (a) As used in this Section:
48-15 "Offeror" means a person or group of persons that responds
49-16 to a request for qualifications under this Section.
50-17 "Request for qualifications" means all materials and
51-18 documents prepared by the Department to solicit the following
52-19 from offerors:
53-20 (1) Statements of qualifications.
54-21 (2) Proposals to enter into a management agreement,
55-22 including the identity of any prospective vendor or
56-23 vendors that the offeror intends to initially engage to
57-24 assist the offeror in performing its obligations under the
58-25 management agreement.
37+103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5229 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED:
38+20 ILCS 1605/9.1 20 ILCS 1605/9.1
39+20 ILCS 1605/9.1
40+Amends the Illinois Lottery Law. Removes a provision requiring the Governor to select a private manager for the total management of the Lottery by September 15, 2010 and provisions requiring the Department of Lottery to endeavor to expeditiously terminate the existing contracts in support of the lottery in effect on July 13, 2009 and transfer those functions to the private manager. Removes a provision allowing the compensation of the private manager to consist of a fee for services and a performance-based bonus as consideration for managing the lottery, including terms that may provide the private manager with an increase in compensation if lottery revenues grow by a specified percentage in a given year. Removes language voiding specified requests for proposal offered by the Department on December 22, 2008. Makes other changes.
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42+ LRB103 38855 AWJ 68992 b
43+A BILL FOR
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69-1 "Final offer" means the last proposal submitted by an
70-2 offeror in response to the request for qualifications,
71-3 including the identity of any prospective vendor or vendors
72-4 that the offeror intends to initially engage to assist the
73-5 offeror in performing its obligations under the management
74-6 agreement.
75-7 "Final offeror" means the offeror ultimately selected by
76-8 the Governor to be the private manager for the Lottery under
77-9 subsection (h) of this Section.
78-10 (b) (Blank). By September 15, 2010, the Governor shall
79-11 select a private manager for the total management of the
80-12 Lottery with integrated functions, such as lottery game
81-13 design, supply of goods and services, and advertising and as
82-14 specified in this Section.
83-15 (c) (Blank). Pursuant to the terms of this subsection, the
84-16 Department shall endeavor to expeditiously terminate the
85-17 existing contracts in support of the Lottery in effect on July
86-18 13, 2009 (the effective date of Public Act 96-37) in
87-19 connection with the selection of the private manager. As part
88-20 of its obligation to terminate these contracts and select the
89-21 private manager, the Department shall establish a mutually
90-22 agreeable timetable to transfer the functions of existing
91-23 contractors to the private manager so that existing Lottery
92-24 operations are not materially diminished or impaired during
93-25 the transition. To that end, the Department shall do the
94-26 following:
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105-1 (1) where such contracts contain a provision
106-2 authorizing termination upon notice, the Department shall
107-3 provide notice of termination to occur upon the mutually
108-4 agreed timetable for transfer of functions;
109-5 (2) upon the expiration of any initial term or renewal
110-6 term of the current Lottery contracts, the Department
111-7 shall not renew such contract for a term extending beyond
112-8 the mutually agreed timetable for transfer of functions;
113-9 or
114-10 (3) in the event any current contract provides for
115-11 termination of that contract upon the implementation of a
116-12 contract with the private manager, the Department shall
117-13 perform all necessary actions to terminate the contract on
118-14 the date that coincides with the mutually agreed timetable
119-15 for transfer of functions.
120-16 If the contracts to support the current operation of the
121-17 Lottery in effect on July 13, 2009 (the effective date of
122-18 Public Act 96-34) are not subject to termination as provided
123-19 for in this subsection (c), then the Department may include a
124-20 provision in the contract with the private manager specifying
125-21 a mutually agreeable methodology for incorporation.
126-22 (c-5) The Department shall include provisions in the
127-23 management agreement whereby the private manager shall, for a
128-24 fee, and pursuant to a contract negotiated with the Department
129-25 (the "Employee Use Contract"), utilize the services of current
130-26 Department employees to assist in the administration and
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68+1 offeror in performing its obligations under the management
69+2 agreement.
70+3 "Final offeror" means the offeror ultimately selected by
71+4 the Governor to be the private manager for the Lottery under
72+5 subsection (h) of this Section.
73+6 (b) (Blank). By September 15, 2010, the Governor shall
74+7 select a private manager for the total management of the
75+8 Lottery with integrated functions, such as lottery game
76+9 design, supply of goods and services, and advertising and as
77+10 specified in this Section.
78+11 (c) (Blank). Pursuant to the terms of this subsection, the
79+12 Department shall endeavor to expeditiously terminate the
80+13 existing contracts in support of the Lottery in effect on July
81+14 13, 2009 (the effective date of Public Act 96-37) in
82+15 connection with the selection of the private manager. As part
83+16 of its obligation to terminate these contracts and select the
84+17 private manager, the Department shall establish a mutually
85+18 agreeable timetable to transfer the functions of existing
86+19 contractors to the private manager so that existing Lottery
87+20 operations are not materially diminished or impaired during
88+21 the transition. To that end, the Department shall do the
89+22 following:
90+23 (1) where such contracts contain a provision
91+24 authorizing termination upon notice, the Department shall
92+25 provide notice of termination to occur upon the mutually
93+26 agreed timetable for transfer of functions;
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141-1 operation of the Lottery. The Department shall be the employer
142-2 of all such bargaining unit employees assigned to perform such
143-3 work for the private manager, and such employees shall be
144-4 State employees, as defined by the Personnel Code. Department
145-5 employees shall operate under the same employment policies,
146-6 rules, regulations, and procedures, as other employees of the
147-7 Department. In addition, neither historical representation
148-8 rights under the Illinois Public Labor Relations Act, nor
149-9 existing collective bargaining agreements, shall be disturbed
150-10 by the management agreement with the private manager for the
151-11 management of the Lottery.
152-12 (d) The management agreement with the private manager
153-13 shall include all of the following:
154-14 (1) A term not to exceed 10 years, including any
155-15 renewals.
156-16 (2) A provision specifying that the Department:
157-17 (A) shall exercise actual control over all
158-18 significant business decisions;
159-19 (A-5) has the authority to direct or countermand
160-20 operating decisions by the private manager at any
161-21 time;
162-22 (B) has ready access at any time to information
163-23 regarding Lottery operations;
164-24 (C) has the right to demand and receive
165-25 information from the private manager concerning any
166-26 aspect of the Lottery operations at any time; and
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104+1 (2) upon the expiration of any initial term or renewal
105+2 term of the current Lottery contracts, the Department
106+3 shall not renew such contract for a term extending beyond
107+4 the mutually agreed timetable for transfer of functions;
108+5 or
109+6 (3) in the event any current contract provides for
110+7 termination of that contract upon the implementation of a
111+8 contract with the private manager, the Department shall
112+9 perform all necessary actions to terminate the contract on
113+10 the date that coincides with the mutually agreed timetable
114+11 for transfer of functions.
115+12 If the contracts to support the current operation of the
116+13 Lottery in effect on July 13, 2009 (the effective date of
117+14 Public Act 96-34) are not subject to termination as provided
118+15 for in this subsection (c), then the Department may include a
119+16 provision in the contract with the private manager specifying
120+17 a mutually agreeable methodology for incorporation.
121+18 (c-5) The Department shall include provisions in the
122+19 management agreement whereby the private manager shall, for a
123+20 fee, and pursuant to a contract negotiated with the Department
124+21 (the "Employee Use Contract"), utilize the services of current
125+22 Department employees to assist in the administration and
126+23 operation of the Lottery. The Department shall be the employer
127+24 of all such bargaining unit employees assigned to perform such
128+25 work for the private manager, and such employees shall be
129+26 State employees, as defined by the Personnel Code. Department
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177-1 (D) retains ownership of all trade names,
178-2 trademarks, and intellectual property associated with
179-3 the Lottery.
180-4 (3) A provision imposing an affirmative duty on the
181-5 private manager to provide the Department with material
182-6 information and with any information the private manager
183-7 reasonably believes the Department would want to know to
184-8 enable the Department to conduct the Lottery.
185-9 (4) A provision requiring the private manager to
186-10 provide the Department with advance notice of any
187-11 operating decision that bears significantly on the public
188-12 interest, including, but not limited to, decisions on the
189-13 kinds of games to be offered to the public and decisions
190-14 affecting the relative risk and reward of the games being
191-15 offered, so the Department has a reasonable opportunity to
192-16 evaluate and countermand that decision.
193-17 (5) A provision providing for compensation of the
194-18 private manager that may consist of, among other things, a
195-19 fee for services and a performance based bonus as
196-20 consideration for managing the Lottery, including terms
197-21 that may provide the private manager with an increase in
198-22 compensation if Lottery revenues grow by a specified
199-23 percentage in a given year.
200-24 (6) (Blank).
201-25 (7) A provision requiring the deposit of all Lottery
202-26 proceeds to be deposited into the State Lottery Fund
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140+1 employees shall operate under the same employment policies,
141+2 rules, regulations, and procedures, as other employees of the
142+3 Department. In addition, neither historical representation
143+4 rights under the Illinois Public Labor Relations Act, nor
144+5 existing collective bargaining agreements, shall be disturbed
145+6 by the management agreement with the private manager for the
146+7 management of the Lottery.
147+8 (d) The management agreement with the private manager
148+9 shall include all of the following:
149+10 (1) A term not to exceed 10 years, including any
150+11 renewals.
151+12 (2) A provision specifying that the Department:
152+13 (A) shall exercise actual control over all
153+14 significant business decisions;
154+15 (A-5) has the authority to direct or countermand
155+16 operating decisions by the private manager at any
156+17 time;
157+18 (B) has ready access at any time to information
158+19 regarding Lottery operations;
159+20 (C) has the right to demand and receive
160+21 information from the private manager concerning any
161+22 aspect of the Lottery operations at any time; and
162+23 (D) retains ownership of all trade names,
163+24 trademarks, and intellectual property associated with
164+25 the Lottery.
165+26 (3) A provision imposing an affirmative duty on the
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213-1 except as otherwise provided in Section 20 of this Act.
214-2 (8) A provision requiring the private manager to
215-3 locate its principal office within the State.
216-4 (8-5) A provision encouraging that, pursuant to
217-5 Section 4 of the Business Enterprise for Minorities,
218-6 Women, and Persons with Disabilities Act, at least 20% of
219-7 the cost of contracts entered into for goods and services
220-8 by the private manager in connection with its management
221-9 of the Lottery, other than contracts with sales agents or
222-10 technical advisors, be awarded to businesses that are a
223-11 minority-owned business, a women-owned business, or a
224-12 business owned by a person with disability, as those terms
225-13 are defined in the Business Enterprise for Minorities,
226-14 Women, and Persons with Disabilities Act.
227-15 (9) A requirement that so long as the private manager
228-16 complies with all the conditions of the agreement under
229-17 the oversight of the Department, the private manager shall
230-18 have the following duties and obligations with respect to
231-19 the management of the Lottery:
232-20 (A) The right to use equipment and other assets
233-21 used in the operation of the Lottery.
234-22 (B) The rights and obligations under contracts
235-23 with retailers and vendors.
236-24 (C) The implementation of a comprehensive security
237-25 program by the private manager.
238-26 (D) The implementation of a comprehensive system
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176+1 private manager to provide the Department with material
177+2 information and with any information the private manager
178+3 reasonably believes the Department would want to know to
179+4 enable the Department to conduct the Lottery.
180+5 (4) A provision requiring the private manager to
181+6 provide the Department with advance notice of any
182+7 operating decision that bears significantly on the public
183+8 interest, including, but not limited to, decisions on the
184+9 kinds of games to be offered to the public and decisions
185+10 affecting the relative risk and reward of the games being
186+11 offered, so the Department has a reasonable opportunity to
187+12 evaluate and countermand that decision.
188+13 (5) A provision providing for compensation of the
189+14 private manager that may consist of, among other things, a
190+15 fee for services and a performance based bonus as
191+16 consideration for managing the Lottery, including terms
192+17 that may provide the private manager with an increase in
193+18 compensation if Lottery revenues grow by a specified
194+19 percentage in a given year.
195+20 (6) (Blank).
196+21 (7) A provision requiring the deposit of all Lottery
197+22 proceeds to be deposited into the State Lottery Fund
198+23 except as otherwise provided in Section 20 of this Act.
199+24 (8) A provision requiring the private manager to
200+25 locate its principal office within the State.
201+26 (8-5) A provision encouraging that, pursuant to
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249-1 of internal audits.
250-2 (E) The implementation of a program by the private
251-3 manager to curb compulsive gambling by persons playing
252-4 the Lottery.
253-5 (F) A system for determining (i) the type of
254-6 Lottery games, (ii) the method of selecting winning
255-7 tickets, (iii) the manner of payment of prizes to
256-8 holders of winning tickets, (iv) the frequency of
257-9 drawings of winning tickets, (v) the method to be used
258-10 in selling tickets, (vi) a system for verifying the
259-11 validity of tickets claimed to be winning tickets,
260-12 (vii) the basis upon which retailer commissions are
261-13 established by the manager, and (viii) minimum
262-14 payouts.
263-15 (10) A requirement that advertising and promotion must
264-16 be consistent with Section 7.8a of this Act.
265-17 (11) A requirement that the private manager market the
266-18 Lottery to those residents who are new, infrequent, or
267-19 lapsed players of the Lottery, especially those who are
268-20 most likely to make regular purchases on the Internet as
269-21 permitted by law.
270-22 (12) A code of ethics for the private manager's
271-23 officers and employees.
272-24 (13) A requirement that the Department monitor and
273-25 oversee the private manager's practices and take action
274-26 that the Department considers appropriate to ensure that
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212+1 Section 4 of the Business Enterprise for Minorities,
213+2 Women, and Persons with Disabilities Act, at least 20% of
214+3 the cost of contracts entered into for goods and services
215+4 by the private manager in connection with its management
216+5 of the Lottery, other than contracts with sales agents or
217+6 technical advisors, be awarded to businesses that are a
218+7 minority-owned business, a women-owned business, or a
219+8 business owned by a person with disability, as those terms
220+9 are defined in the Business Enterprise for Minorities,
221+10 Women, and Persons with Disabilities Act.
222+11 (9) A requirement that so long as the private manager
223+12 complies with all the conditions of the agreement under
224+13 the oversight of the Department, the private manager shall
225+14 have the following duties and obligations with respect to
226+15 the management of the Lottery:
227+16 (A) The right to use equipment and other assets
228+17 used in the operation of the Lottery.
229+18 (B) The rights and obligations under contracts
230+19 with retailers and vendors.
231+20 (C) The implementation of a comprehensive security
232+21 program by the private manager.
233+22 (D) The implementation of a comprehensive system
234+23 of internal audits.
235+24 (E) The implementation of a program by the private
236+25 manager to curb compulsive gambling by persons playing
237+26 the Lottery.
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285-1 the private manager is in compliance with the terms of the
286-2 management agreement, while allowing the manager, unless
287-3 specifically prohibited by law or the management
288-4 agreement, to negotiate and sign its own contracts with
289-5 vendors.
290-6 (14) A provision requiring the private manager to
291-7 periodically file, at least on an annual basis,
292-8 appropriate financial statements in a form and manner
293-9 acceptable to the Department.
294-10 (15) Cash reserves requirements.
295-11 (16) Procedural requirements for obtaining the prior
296-12 approval of the Department when a management agreement or
297-13 an interest in a management agreement is sold, assigned,
298-14 transferred, or pledged as collateral to secure financing.
299-15 (17) Grounds for the termination of the management
300-16 agreement by the Department or the private manager.
301-17 (18) Procedures for amendment of the agreement.
302-18 (19) A provision requiring the private manager to
303-19 engage in an open and competitive bidding process for any
304-20 procurement having a cost in excess of the small purchase
305-21 limits under Section 20-20 of the Illinois Procurement
306-22 Code $50,000 that is not a part of the private manager's
307-23 final offer. The process shall favor the selection of a
308-24 vendor deemed to have submitted a proposal that provides
309-25 the Lottery with the best overall value. The process shall
310-26 not be subject to the provisions of the Illinois
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248+1 (F) A system for determining (i) the type of
249+2 Lottery games, (ii) the method of selecting winning
250+3 tickets, (iii) the manner of payment of prizes to
251+4 holders of winning tickets, (iv) the frequency of
252+5 drawings of winning tickets, (v) the method to be used
253+6 in selling tickets, (vi) a system for verifying the
254+7 validity of tickets claimed to be winning tickets,
255+8 (vii) the basis upon which retailer commissions are
256+9 established by the manager, and (viii) minimum
257+10 payouts.
258+11 (10) A requirement that advertising and promotion must
259+12 be consistent with Section 7.8a of this Act.
260+13 (11) A requirement that the private manager market the
261+14 Lottery to those residents who are new, infrequent, or
262+15 lapsed players of the Lottery, especially those who are
263+16 most likely to make regular purchases on the Internet as
264+17 permitted by law.
265+18 (12) A code of ethics for the private manager's
266+19 officers and employees.
267+20 (13) A requirement that the Department monitor and
268+21 oversee the private manager's practices and take action
269+22 that the Department considers appropriate to ensure that
270+23 the private manager is in compliance with the terms of the
271+24 management agreement, while allowing the manager, unless
272+25 specifically prohibited by law or the management
273+26 agreement, to negotiate and sign its own contracts with
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321-1 Procurement Code, unless specifically required by the
322-2 management agreement.
323-3 (20) The transition of rights and obligations,
324-4 including any associated equipment or other assets used in
325-5 the operation of the Lottery, from the manager to any
326-6 successor manager of the lottery, including the
327-7 Department, following the termination of or foreclosure
328-8 upon the management agreement.
329-9 (21) Right of use of copyrights, trademarks, and
330-10 service marks held by the Department in the name of the
331-11 State. The agreement must provide that any use of them by
332-12 the manager shall only be for the purpose of fulfilling
333-13 its obligations under the management agreement during the
334-14 term of the agreement.
335-15 (22) The disclosure of any information requested by
336-16 the Department to enable it to comply with the reporting
337-17 requirements and information requests provided for under
338-18 subsection (p) of this Section.
339-19 (e) Notwithstanding any other law to the contrary, the
340-20 Department shall select a private manager through a
341-21 competitive request for qualifications process consistent with
342-22 Section 20-35 of the Illinois Procurement Code, which shall
343-23 take into account:
344-24 (1) the offeror's ability to market the Lottery to
345-25 those residents who are new, infrequent, or lapsed players
346-26 of the Lottery, especially those who are most likely to
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284+1 vendors.
285+2 (14) A provision requiring the private manager to
286+3 periodically file, at least on an annual basis,
287+4 appropriate financial statements in a form and manner
288+5 acceptable to the Department.
289+6 (15) Cash reserves requirements.
290+7 (16) Procedural requirements for obtaining the prior
291+8 approval of the Department when a management agreement or
292+9 an interest in a management agreement is sold, assigned,
293+10 transferred, or pledged as collateral to secure financing.
294+11 (17) Grounds for the termination of the management
295+12 agreement by the Department or the private manager.
296+13 (18) Procedures for amendment of the agreement.
297+14 (19) A provision requiring the private manager to
298+15 engage in an open and competitive bidding process for any
299+16 procurement having a cost in excess of the small purchase
300+17 limits under Section 20-20 of the Illinois Procurement
301+18 Code $50,000 that is not a part of the private manager's
302+19 final offer. The process shall favor the selection of a
303+20 vendor deemed to have submitted a proposal that provides
304+21 the Lottery with the best overall value. The process shall
305+22 not be subject to the provisions of the Illinois
306+23 Procurement Code, unless specifically required by the
307+24 management agreement.
308+25 (20) The transition of rights and obligations,
309+26 including any associated equipment or other assets used in
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357-1 make regular purchases on the Internet;
358-2 (2) the offeror's ability to address the State's
359-3 concern with the social effects of gambling on those who
360-4 can least afford to do so;
361-5 (3) the offeror's ability to provide the most
362-6 successful management of the Lottery for the benefit of
363-7 the people of the State based on current and past business
364-8 practices or plans of the offeror; and
365-9 (4) the offeror's poor or inadequate past performance
366-10 in servicing, equipping, operating or managing a lottery
367-11 on behalf of Illinois, another State or foreign government
368-12 and attracting persons who are not currently regular
369-13 players of a lottery.
370-14 (f) The Department may retain the services of an advisor
371-15 or advisors with significant experience in financial services
372-16 or the management, operation, and procurement of goods,
373-17 services, and equipment for a government-run lottery to assist
374-18 in the preparation of the terms of the request for
375-19 qualifications and selection of the private manager. Any
376-20 prospective advisor seeking to provide services under this
377-21 subsection (f) shall disclose any material business or
378-22 financial relationship during the past 3 years with any
379-23 potential offeror, or with a contractor or subcontractor
380-24 presently providing goods, services, or equipment to the
381-25 Department to support the Lottery. The Department shall
382-26 evaluate the material business or financial relationship of
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319+ HB5229 - 9 - LRB103 38855 AWJ 68992 b
320+1 the operation of the Lottery, from the manager to any
321+2 successor manager of the lottery, including the
322+3 Department, following the termination of or foreclosure
323+4 upon the management agreement.
324+5 (21) Right of use of copyrights, trademarks, and
325+6 service marks held by the Department in the name of the
326+7 State. The agreement must provide that any use of them by
327+8 the manager shall only be for the purpose of fulfilling
328+9 its obligations under the management agreement during the
329+10 term of the agreement.
330+11 (22) The disclosure of any information requested by
331+12 the Department to enable it to comply with the reporting
332+13 requirements and information requests provided for under
333+14 subsection (p) of this Section.
334+15 (e) Notwithstanding any other law to the contrary, the
335+16 Department shall select a private manager through a
336+17 competitive request for qualifications process consistent with
337+18 Section 20-35 of the Illinois Procurement Code, which shall
338+19 take into account:
339+20 (1) the offeror's ability to market the Lottery to
340+21 those residents who are new, infrequent, or lapsed players
341+22 of the Lottery, especially those who are most likely to
342+23 make regular purchases on the Internet;
343+24 (2) the offeror's ability to address the State's
344+25 concern with the social effects of gambling on those who
345+26 can least afford to do so;
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393-1 each prospective advisor. The Department shall not select any
394-2 prospective advisor with a substantial business or financial
395-3 relationship that the Department deems to impair the
396-4 objectivity of the services to be provided by the prospective
397-5 advisor. During the course of the advisor's engagement by the
398-6 Department, and for a period of one year thereafter, the
399-7 advisor shall not enter into any business or financial
400-8 relationship with any offeror or any vendor identified to
401-9 assist an offeror in performing its obligations under the
402-10 management agreement. Any advisor retained by the Department
403-11 shall be disqualified from being an offeror. The Department
404-12 shall not include terms in the request for qualifications that
405-13 provide a material advantage whether directly or indirectly to
406-14 any potential offeror, or any contractor or subcontractor
407-15 presently providing goods, services, or equipment to the
408-16 Department to support the Lottery, including terms contained
409-17 in previous responses to requests for proposals or
410-18 qualifications submitted to Illinois, another State or foreign
411-19 government when those terms are uniquely associated with a
412-20 particular potential offeror, contractor, or subcontractor.
413-21 The request for proposals offered by the Department on
414-22 December 22, 2008 as "LOT08GAMESYS" and reference number
415-23 "22016176" is declared void.
416-24 (g) The Department shall select at least 2 offerors as
417-25 finalists to potentially serve as the private manager no later
418-26 than August 9, 2010. Upon making preliminary selections, the
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355+ HB5229 - 10 - LRB103 38855 AWJ 68992 b
356+1 (3) the offeror's ability to provide the most
357+2 successful management of the Lottery for the benefit of
358+3 the people of the State based on current and past business
359+4 practices or plans of the offeror; and
360+5 (4) the offeror's poor or inadequate past performance
361+6 in servicing, equipping, operating or managing a lottery
362+7 on behalf of Illinois, another State or foreign government
363+8 and attracting persons who are not currently regular
364+9 players of a lottery.
365+10 (f) The Department may retain the services of an advisor
366+11 or advisors with significant experience in financial services
367+12 or the management, operation, and procurement of goods,
368+13 services, and equipment for a government-run lottery to assist
369+14 in the preparation of the terms of the request for
370+15 qualifications and selection of the private manager. Any
371+16 prospective advisor seeking to provide services under this
372+17 subsection (f) shall disclose any material business or
373+18 financial relationship during the past 3 years with any
374+19 potential offeror, or with a contractor or subcontractor
375+20 presently providing goods, services, or equipment to the
376+21 Department to support the Lottery. The Department shall
377+22 evaluate the material business or financial relationship of
378+23 each prospective advisor. The Department shall not select any
379+24 prospective advisor with a substantial business or financial
380+25 relationship that the Department deems to impair the
381+26 objectivity of the services to be provided by the prospective
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429-1 Department shall schedule a public hearing on the finalists'
430-2 proposals and provide public notice of the hearing at least 7
431-3 calendar days before the hearing. The notice must include all
432-4 of the following:
433-5 (1) The date, time, and place of the hearing.
434-6 (2) The subject matter of the hearing.
435-7 (3) A brief description of the management agreement to
436-8 be awarded.
437-9 (4) The identity of the offerors that have been
438-10 selected as finalists to serve as the private manager.
439-11 (5) The address and telephone number of the
440-12 Department.
441-13 (h) At the public hearing, the Department shall (i)
442-14 provide sufficient time for each finalist to present and
443-15 explain its proposal to the Department and the Governor or the
444-16 Governor's designee, including an opportunity to respond to
445-17 questions posed by the Department, Governor, or designee and
446-18 (ii) allow the public and non-selected offerors to comment on
447-19 the presentations. The Governor or a designee shall attend the
448-20 public hearing. After the public hearing, the Department shall
449-21 have 14 calendar days to recommend to the Governor whether a
450-22 management agreement should be entered into with a particular
451-23 finalist. After reviewing the Department's recommendation, the
452-24 Governor may accept or reject the Department's recommendation,
453-25 and shall select a final offeror as the private manager by
454-26 publication of a notice in the Illinois Procurement Bulletin
390+HB5229- 11 -LRB103 38855 AWJ 68992 b HB5229 - 11 - LRB103 38855 AWJ 68992 b
391+ HB5229 - 11 - LRB103 38855 AWJ 68992 b
392+1 advisor. During the course of the advisor's engagement by the
393+2 Department, and for a period of one year thereafter, the
394+3 advisor shall not enter into any business or financial
395+4 relationship with any offeror or any vendor identified to
396+5 assist an offeror in performing its obligations under the
397+6 management agreement. Any advisor retained by the Department
398+7 shall be disqualified from being an offeror. The Department
399+8 shall not include terms in the request for qualifications that
400+9 provide a material advantage whether directly or indirectly to
401+10 any potential offeror, or any contractor or subcontractor
402+11 presently providing goods, services, or equipment to the
403+12 Department to support the Lottery, including terms contained
404+13 in previous responses to requests for proposals or
405+14 qualifications submitted to Illinois, another State or foreign
406+15 government when those terms are uniquely associated with a
407+16 particular potential offeror, contractor, or subcontractor.
408+17 The request for proposals offered by the Department on
409+18 December 22, 2008 as "LOT08GAMESYS" and reference number
410+19 "22016176" is declared void.
411+20 (g) The Department shall select at least 2 offerors as
412+21 finalists to potentially serve as the private manager no later
413+22 than August 9, 2010. Upon making preliminary selections, the
414+23 Department shall schedule a public hearing on the finalists'
415+24 proposals and provide public notice of the hearing at least 7
416+25 calendar days before the hearing. The notice must include all
417+26 of the following:
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465-1 on or before September 15, 2010. The Governor shall include in
466-2 the notice a detailed explanation and the reasons why the
467-3 final offeror is superior to other offerors and will provide
468-4 management services in a manner that best achieves the
469-5 objectives of this Section. The Governor shall also sign the
470-6 management agreement with the private manager.
471-7 (i) Any action to contest the private manager selected by
472-8 the Governor under this Section must be brought within 7
473-9 calendar days after the publication of the notice of the
474-10 designation of the private manager as provided in subsection
475-11 (h) of this Section.
476-12 (j) The Lottery shall remain, for so long as a private
477-13 manager manages the Lottery in accordance with provisions of
478-14 this Act, a Lottery conducted by the State, and the State shall
479-15 not be authorized to sell or transfer the Lottery to a third
480-16 party.
481-17 (k) Any tangible personal property used exclusively in
482-18 connection with the lottery that is owned by the Department
483-19 and leased to the private manager shall be owned by the
484-20 Department in the name of the State and shall be considered to
485-21 be public property devoted to an essential public and
486-22 governmental function.
487-23 (l) The Department may exercise any of its powers under
488-24 this Section or any other law as necessary or desirable for the
489-25 execution of the Department's powers under this Section.
490-26 (m) Neither this Section nor any management agreement
426+HB5229- 12 -LRB103 38855 AWJ 68992 b HB5229 - 12 - LRB103 38855 AWJ 68992 b
427+ HB5229 - 12 - LRB103 38855 AWJ 68992 b
428+1 (1) The date, time, and place of the hearing.
429+2 (2) The subject matter of the hearing.
430+3 (3) A brief description of the management agreement to
431+4 be awarded.
432+5 (4) The identity of the offerors that have been
433+6 selected as finalists to serve as the private manager.
434+7 (5) The address and telephone number of the
435+8 Department.
436+9 (h) At the public hearing, the Department shall (i)
437+10 provide sufficient time for each finalist to present and
438+11 explain its proposal to the Department and the Governor or the
439+12 Governor's designee, including an opportunity to respond to
440+13 questions posed by the Department, Governor, or designee and
441+14 (ii) allow the public and non-selected offerors to comment on
442+15 the presentations. The Governor or a designee shall attend the
443+16 public hearing. After the public hearing, the Department shall
444+17 have 14 calendar days to recommend to the Governor whether a
445+18 management agreement should be entered into with a particular
446+19 finalist. After reviewing the Department's recommendation, the
447+20 Governor may accept or reject the Department's recommendation,
448+21 and shall select a final offeror as the private manager by
449+22 publication of a notice in the Illinois Procurement Bulletin
450+23 on or before September 15, 2010. The Governor shall include in
451+24 the notice a detailed explanation and the reasons why the
452+25 final offeror is superior to other offerors and will provide
453+26 management services in a manner that best achieves the
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501-1 entered into under this Section prohibits the General Assembly
502-2 from authorizing forms of gambling that are not in direct
503-3 competition with the Lottery. The forms of gambling authorized
504-4 by Public Act 101-31 constitute authorized forms of gambling
505-5 that are not in direct competition with the Lottery.
506-6 (n) The private manager shall be subject to a complete
507-7 investigation in the third, seventh, and tenth years of the
508-8 agreement (if the agreement is for a 10-year term) by the
509-9 Department in cooperation with the Auditor General to
510-10 determine whether the private manager has complied with this
511-11 Section and the management agreement. The private manager
512-12 shall bear the cost of an investigation or reinvestigation of
513-13 the private manager under this subsection.
514-14 (o) The powers conferred by this Section are in addition
515-15 and supplemental to the powers conferred by any other law. If
516-16 any other law or rule is inconsistent with this Section,
517-17 including, but not limited to, provisions of the Illinois
518-18 Procurement Code, then this Section controls as to any
519-19 management agreement entered into under this Section. This
520-20 Section and any rules adopted under this Section contain full
521-21 and complete authority for a management agreement between the
522-22 Department and a private manager. No law, procedure,
523-23 proceeding, publication, notice, consent, approval, order, or
524-24 act by the Department or any other officer, Department,
525-25 agency, or instrumentality of the State or any political
526-26 subdivision is required for the Department to enter into a
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463+ HB5229 - 13 - LRB103 38855 AWJ 68992 b
464+1 objectives of this Section. The Governor shall also sign the
465+2 management agreement with the private manager.
466+3 (i) Any action to contest the private manager selected by
467+4 the Governor under this Section must be brought within 7
468+5 calendar days after the publication of the notice of the
469+6 designation of the private manager as provided in subsection
470+7 (h) of this Section.
471+8 (j) The Lottery shall remain, for so long as a private
472+9 manager manages the Lottery in accordance with provisions of
473+10 this Act, a Lottery conducted by the State, and the State shall
474+11 not be authorized to sell or transfer the Lottery to a third
475+12 party.
476+13 (k) Any tangible personal property used exclusively in
477+14 connection with the lottery that is owned by the Department
478+15 and leased to the private manager shall be owned by the
479+16 Department in the name of the State and shall be considered to
480+17 be public property devoted to an essential public and
481+18 governmental function.
482+19 (l) The Department may exercise any of its powers under
483+20 this Section or any other law as necessary or desirable for the
484+21 execution of the Department's powers under this Section.
485+22 (m) Neither this Section nor any management agreement
486+23 entered into under this Section prohibits the General Assembly
487+24 from authorizing forms of gambling that are not in direct
488+25 competition with the Lottery. The forms of gambling authorized
489+26 by Public Act 101-31 constitute authorized forms of gambling
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537-1 management agreement under this Section. This Section contains
538-2 full and complete authority for the Department to approve any
539-3 contracts entered into by a private manager with a vendor
540-4 providing goods, services, or both goods and services to the
541-5 private manager under the terms of the management agreement,
542-6 including subcontractors of such vendors.
543-7 Upon receipt of a written request from the Chief
544-8 Procurement Officer, the Department shall provide to the Chief
545-9 Procurement Officer a complete and un-redacted copy of the
546-10 management agreement or any contract that is subject to the
547-11 Department's approval authority under this subsection (o). The
548-12 Department shall provide a copy of the agreement or contract
549-13 to the Chief Procurement Officer in the time specified by the
550-14 Chief Procurement Officer in his or her written request, but
551-15 no later than 5 business days after the request is received by
552-16 the Department. The Chief Procurement Officer must retain any
553-17 portions of the management agreement or of any contract
554-18 designated by the Department as confidential, proprietary, or
555-19 trade secret information in complete confidence pursuant to
556-20 subsection (g) of Section 7 of the Freedom of Information Act.
557-21 The Department shall also provide the Chief Procurement
558-22 Officer with reasonable advance written notice of any contract
559-23 that is pending Department approval.
560-24 Notwithstanding any other provision of this Section to the
561-25 contrary, the Chief Procurement Officer shall adopt
562-26 administrative rules, including emergency rules, to establish
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499+ HB5229 - 14 - LRB103 38855 AWJ 68992 b
500+1 that are not in direct competition with the Lottery.
501+2 (n) The private manager shall be subject to a complete
502+3 investigation in the third, seventh, and tenth years of the
503+4 agreement (if the agreement is for a 10-year term) by the
504+5 Department in cooperation with the Auditor General to
505+6 determine whether the private manager has complied with this
506+7 Section and the management agreement. The private manager
507+8 shall bear the cost of an investigation or reinvestigation of
508+9 the private manager under this subsection.
509+10 (o) The powers conferred by this Section are in addition
510+11 and supplemental to the powers conferred by any other law. If
511+12 any other law or rule is inconsistent with this Section,
512+13 including, but not limited to, provisions of the Illinois
513+14 Procurement Code, then this Section controls as to any
514+15 management agreement entered into under this Section. This
515+16 Section and any rules adopted under this Section contain full
516+17 and complete authority for a management agreement between the
517+18 Department and a private manager. No law, procedure,
518+19 proceeding, publication, notice, consent, approval, order, or
519+20 act by the Department or any other officer, Department,
520+21 agency, or instrumentality of the State or any political
521+22 subdivision is required for the Department to enter into a
522+23 management agreement under this Section. This Section contains
523+24 full and complete authority for the Department to approve any
524+25 contracts entered into by a private manager with a vendor
525+26 providing goods, services, or both goods and services to the
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573-1 a procurement process to select a successor private manager if
574-2 a private management agreement has been terminated. The
575-3 selection process shall at a minimum take into account the
576-4 criteria set forth in items (1) through (4) of subsection (e)
577-5 of this Section and may include provisions consistent with
578-6 subsections (f), (g), (h), and (i) of this Section. The Chief
579-7 Procurement Officer shall also implement and administer the
580-8 adopted selection process upon the termination of a private
581-9 management agreement. The Department, after the Chief
582-10 Procurement Officer certifies that the procurement process has
583-11 been followed in accordance with the rules adopted under this
584-12 subsection (o), shall select a final offeror as the private
585-13 manager and sign the management agreement with the private
586-14 manager.
587-15 Through June 30, 2022, except as provided in Sections
588-16 21.5, 21.6, 21.7, 21.8, 21.9, 21.10, 21.11, 21.12, and 21.13
589-17 of this Act and Section 25-70 of the Sports Wagering Act, the
590-18 Department shall distribute all proceeds of lottery tickets
591-19 and shares sold in the following priority and manner:
592-20 (1) The payment of prizes and retailer bonuses.
593-21 (2) The payment of costs incurred in the operation and
594-22 administration of the Lottery, including the payment of
595-23 sums due to the private manager under the management
596-24 agreement with the Department.
597-25 (3) On the last day of each month or as soon thereafter
598-26 as possible, the State Comptroller shall direct and the
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535+ HB5229 - 15 - LRB103 38855 AWJ 68992 b
536+1 private manager under the terms of the management agreement,
537+2 including subcontractors of such vendors.
538+3 Upon receipt of a written request from the Chief
539+4 Procurement Officer, the Department shall provide to the Chief
540+5 Procurement Officer a complete and un-redacted copy of the
541+6 management agreement or any contract that is subject to the
542+7 Department's approval authority under this subsection (o). The
543+8 Department shall provide a copy of the agreement or contract
544+9 to the Chief Procurement Officer in the time specified by the
545+10 Chief Procurement Officer in his or her written request, but
546+11 no later than 5 business days after the request is received by
547+12 the Department. The Chief Procurement Officer must retain any
548+13 portions of the management agreement or of any contract
549+14 designated by the Department as confidential, proprietary, or
550+15 trade secret information in complete confidence pursuant to
551+16 subsection (g) of Section 7 of the Freedom of Information Act.
552+17 The Department shall also provide the Chief Procurement
553+18 Officer with reasonable advance written notice of any contract
554+19 that is pending Department approval.
555+20 Notwithstanding any other provision of this Section to the
556+21 contrary, the Chief Procurement Officer shall adopt
557+22 administrative rules, including emergency rules, to establish
558+23 a procurement process to select a successor private manager if
559+24 a private management agreement has been terminated. The
560+25 selection process shall at a minimum take into account the
561+26 criteria set forth in items (1) through (4) of subsection (e)
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609-1 State Treasurer shall transfer from the State Lottery Fund
610-2 to the Common School Fund an amount that is equal to the
611-3 proceeds transferred in the corresponding month of fiscal
612-4 year 2009, as adjusted for inflation, to the Common School
613-5 Fund.
614-6 (4) On or before September 30 of each fiscal year,
615-7 deposit any estimated remaining proceeds from the prior
616-8 fiscal year, subject to payments under items (1), (2), and
617-9 (3), into the Capital Projects Fund. Beginning in fiscal
618-10 year 2019, the amount deposited shall be increased or
619-11 decreased each year by the amount the estimated payment
620-12 differs from the amount determined from each year-end
621-13 financial audit. Only remaining net deficits from prior
622-14 fiscal years may reduce the requirement to deposit these
623-15 funds, as determined by the annual financial audit.
624-16 Beginning July 1, 2022, the Department shall distribute
625-17 all proceeds of lottery tickets and shares sold in the manner
626-18 and priority described in Section 9.3 of this Act, except that
627-19 the Department shall make the deposit into the Capital
628-20 Projects Fund that would have occurred under item (4) of this
629-21 subsection (o) on or before September 30, 2022, but for the
630-22 changes made to this subsection by Public Act 102-699.
631-23 (p) The Department shall be subject to the following
632-24 reporting and information request requirements:
633-25 (1) the Department shall submit written quarterly
634-26 reports to the Governor and the General Assembly on the
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572+1 of this Section and may include provisions consistent with
573+2 subsections (f), (g), (h), and (i) of this Section. The Chief
574+3 Procurement Officer shall also implement and administer the
575+4 adopted selection process upon the termination of a private
576+5 management agreement. The Department, after the Chief
577+6 Procurement Officer certifies that the procurement process has
578+7 been followed in accordance with the rules adopted under this
579+8 subsection (o), shall select a final offeror as the private
580+9 manager and sign the management agreement with the private
581+10 manager.
582+11 Through June 30, 2022, except as provided in Sections
583+12 21.5, 21.6, 21.7, 21.8, 21.9, 21.10, 21.11, 21.12, and 21.13
584+13 of this Act and Section 25-70 of the Sports Wagering Act, the
585+14 Department shall distribute all proceeds of lottery tickets
586+15 and shares sold in the following priority and manner:
587+16 (1) The payment of prizes and retailer bonuses.
588+17 (2) The payment of costs incurred in the operation and
589+18 administration of the Lottery, including the payment of
590+19 sums due to the private manager under the management
591+20 agreement with the Department.
592+21 (3) On the last day of each month or as soon thereafter
593+22 as possible, the State Comptroller shall direct and the
594+23 State Treasurer shall transfer from the State Lottery Fund
595+24 to the Common School Fund an amount that is equal to the
596+25 proceeds transferred in the corresponding month of fiscal
597+26 year 2009, as adjusted for inflation, to the Common School
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645-1 activities and actions of the private manager selected
646-2 under this Section;
647-3 (2) upon request of the Chief Procurement Officer, the
648-4 Department shall promptly produce information related to
649-5 the procurement activities of the Department and the
650-6 private manager requested by the Chief Procurement
651-7 Officer; the Chief Procurement Officer must retain
652-8 confidential, proprietary, or trade secret information
653-9 designated by the Department in complete confidence
654-10 pursuant to subsection (g) of Section 7 of the Freedom of
655-11 Information Act; and
656-12 (3) at least 30 days prior to the beginning of the
657-13 Department's fiscal year, the Department shall prepare an
658-14 annual written report on the activities of the private
659-15 manager selected under this Section and deliver that
660-16 report to the Governor and General Assembly.
661-17 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
662-18 101-561, eff. 8-23-19; 102-558, eff. 8-20-21; 102-699, eff.
663-19 4-19-22; 102-1115, eff. 1-9-23.)
664-20 (20 ILCS 1605/10.1) (from Ch. 120, par. 1160.1)
665-21 Sec. 10.1. The following are ineligible for any license
666-22 under this Act:
667-23 (a) any person who has been convicted of a felony;
668-24 (b) any person who is or has been a professional
669-25 gambler or gambling promoter;
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608+1 Fund.
609+2 (4) On or before September 30 of each fiscal year,
610+3 deposit any estimated remaining proceeds from the prior
611+4 fiscal year, subject to payments under items (1), (2), and
612+5 (3), into the Capital Projects Fund. Beginning in fiscal
613+6 year 2019, the amount deposited shall be increased or
614+7 decreased each year by the amount the estimated payment
615+8 differs from the amount determined from each year-end
616+9 financial audit. Only remaining net deficits from prior
617+10 fiscal years may reduce the requirement to deposit these
618+11 funds, as determined by the annual financial audit.
619+12 Beginning July 1, 2022, the Department shall distribute
620+13 all proceeds of lottery tickets and shares sold in the manner
621+14 and priority described in Section 9.3 of this Act, except that
622+15 the Department shall make the deposit into the Capital
623+16 Projects Fund that would have occurred under item (4) of this
624+17 subsection (o) on or before September 30, 2022, but for the
625+18 changes made to this subsection by Public Act 102-699.
626+19 (p) The Department shall be subject to the following
627+20 reporting and information request requirements:
628+21 (1) the Department shall submit written quarterly
629+22 reports to the Governor and the General Assembly on the
630+23 activities and actions of the private manager selected
631+24 under this Section;
632+25 (2) upon request of the Chief Procurement Officer, the
633+26 Department shall promptly produce information related to
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680-1 (c) any person who has engaged in bookmaking or other
681-2 forms of illegal gambling;
682-3 (d) any person who is not of good character and
683-4 reputation in the community in which he resides;
684-5 (e) any person who has been found guilty of any fraud
685-6 or misrepresentation in any connection;
686-7 (f) any firm or corporation in which a person defined
687-8 in item (a), (b), (c), (d), or (e) has a proprietary,
688-9 equitable or credit interest of 5% or more; .
689-10 (g) any organization in which a person defined in item
690-11 (a), (b), (c), (d), or (e) is an officer, director, or
691-12 managing agent, whether compensated or not; and
692-13 (h) any organization in which a person defined in item
693-14 (a), (b), (c), (d), or (e) is to participate in the
694-15 management or sales of lottery tickets or shares.
695-16 However, with respect to persons defined in (a), the
696-17 Department may grant any such person a license under this Act
697-18 when:
698-19 1) at least 10 years have elapsed since the date when
699-20 the sentence for the most recent such conviction was
700-21 satisfactorily completed;
701-22 2) the applicant has no history of criminal activity
702-23 subsequent to such conviction;
703-24 3) the applicant has complied with all conditions of
704-25 probation, conditional discharge, supervision, parole or
705-26 mandatory supervised release; and
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716-1 4) the applicant presents at least 3 letters of
717-2 recommendation from responsible citizens in his community
718-3 who personally can attest that the character and attitude
719-4 of the applicant indicate that he is unlikely to commit
720-5 another crime.
721-6 The Department may revoke, without notice or a hearing,
722-7 the license of any agent who violates this Act or any rule or
723-8 regulation promulgated pursuant to this Act. However, if the
724-9 Department does revoke a license without notice and an
725-10 opportunity for a hearing, the Department shall, by
726-11 appropriate notice, afford the person whose license has been
727-12 revoked an opportunity for a hearing within 30 days after the
728-13 revocation order has been issued. As a result of any such
729-14 hearing, the Department may confirm its action in revoking the
730-15 license, or it may order the restoration of such license.
731-16 (Source: P.A. 97-464, eff. 10-15-11.)
732-17 (20 ILCS 1605/10.6) (from Ch. 120, par. 1160.6)
733-18 Sec. 10.6. The Department shall make an effort to more
734-19 directly inform players of the odds of winning prizes by
735-20 publishing the information for all games on the Department's
736-21 public website. This effort shall include, at a minimum, that
737-22 the Department require all ticket agents to display a placard
738-23 stating the odds of winning for each game offered by that
739-24 agent.
740-25 (Source: P.A. 97-464, eff. 10-15-11.)
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751-1 (20 ILCS 1605/19) (from Ch. 120, par. 1169)
752-2 Sec. 19. The Department shall establish an appropriate
753-3 period for the claiming of prizes for each lottery game
754-4 offered. Each claim period shall be stated in game rules and
755-5 written play instructions issued by the Director in accordance
756-6 with Section 7.1 of this Act. Written play instructions shall
757-7 be made available on the Department's public website or by the
758-8 Department by request to all players through sales agents
759-9 licensed to sell game tickets or shares. Prizes for lottery
760-10 games which involve the purchase of a physical lottery ticket
761-11 may be claimed only by presentation of a valid winning lottery
762-12 ticket that matches validation records on file with the
763-13 Lottery; no claim may be honored which is based on the
764-14 assertion that the ticket was lost or stolen. No lottery
765-15 ticket which has been altered, mutilated, or fails to pass
766-16 validation tests shall be deemed to be a winning ticket.
767-17 If no claim is made for the money within the established
768-18 claim period, the prize may be included in the prize pool of
769-19 such special drawing or drawings as the Department may, from
770-20 time to time, designate. Unclaimed multi-state game prize
771-21 money may be included in the multi-state prize pool for such
772-22 special drawing or drawings as the multi-state game directors
773-23 may, from time to time, designate. Any bonuses offered by the
774-24 Department to sales agents who sell winning tickets or shares
775-25 shall be payable to such agents regardless of whether or not
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786-1 the prize money on the ticket or share is claimed, provided
787-2 that the agent can be identified as the vendor of the winning
788-3 ticket or share, and that the winning ticket or share was sold
789-4 on or after January 1, 1984. All unclaimed prize money not
790-5 included in the prize pool of a special drawing shall be
791-6 transferred to the Common School Fund.
792-7 (Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
793-8 (20 ILCS 1605/20) (from Ch. 120, par. 1170)
794-9 Sec. 20. State Lottery Fund.
795-10 (a) There is created in the State Treasury a special fund
796-11 to be known as the State Lottery Fund. Such fund shall consist
797-12 of all revenues received from (1) the sale of lottery tickets
798-13 or shares, (net of commissions, fees representing those
799-14 expenses that are directly proportionate to the sale of
800-15 tickets or shares at the agent location, and prizes of less
801-16 than $600 or less which have been validly paid at the agent
802-17 level), (2) application fees, and (3) all other sources
803-18 including moneys credited or transferred thereto from any
804-19 other fund or source pursuant to law. Interest earnings of the
805-20 State Lottery Fund shall be credited to the Common School
806-21 Fund.
807-22 (a-5) The receipt and distribution of moneys under Section
808-23 21.4 of this Act shall be in accordance with Section 21.4.
809-24 (b) The receipt and distribution of moneys under Section
810-25 21.5 of this Law shall be in accordance with Section 21.5.
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821-1 (c) The receipt and distribution of moneys under Section
822-2 21.6 of this Law shall be in accordance with Section 21.6.
823-3 (d) The receipt and distribution of moneys under Section
824-4 21.7 of this Law shall be in accordance with Section 21.7.
825-5 (e) The receipt and distribution of moneys under Section
826-6 21.8 of this Law shall be in accordance with Section 21.8.
827-7 (f) The receipt and distribution of moneys under Section
828-8 21.9 of this Law shall be in accordance with Section 21.9.
829-9 (g) The receipt and distribution of moneys under Section
830-10 21.10 of this Law shall be in accordance with Section 21.10.
831-11 (h) The receipt and distribution of moneys under Section
832-12 21.11 of this Law shall be in accordance with Section 21.11.
833-13 (i) (Blank).
834-14 (j) The receipt and distribution of moneys under Section
835-15 21.13 of this Law shall be in accordance with Section 21.13.
836-16 (k) The receipt and distribution of moneys under Section
837-17 25-70 of the Sports Wagering Act shall be in accordance with
838-18 Section 25-70 of the Sports Wagering Act.
839-19 (l) The receipt and distribution of moneys under Section
840-20 21.15 of this Law shall be in accordance with Section 21.15.
841-21 (m) The receipt and distribution of moneys under Section
842-22 21.16 of this Law shall be in accordance with Section 21.16.
843-23 (Source: P.A. 102-16, eff. 6-17-21; 103-381, eff. 7-28-23.)
844-24 (20 ILCS 1605/20.1) (from Ch. 120, par. 1170.1)
845-25 Sec. 20.1. Department account.
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856-1 (a) The Department is authorized to pay validated prizes
857-2 up to $25,000 from funds held by the Department in an account
858-3 separate and apart from all public moneys of the State. Moneys
859-4 in this account shall be administered by the Director
860-5 exclusively for the purposes of issuing payments to prize
861-6 winners authorized by this Section. Moneys in this account
862-7 shall be deposited by the Department into the Public
863-8 Treasurers' Investment Pool established under Section 17 of
864-9 the State Treasurer Act. The Department shall submit vouchers
865-10 from time to time as needed for reimbursement of this account
866-11 from moneys appropriated for prizes from the State Lottery
867-12 Fund. Investment income earned from this account shall be
868-13 deposited monthly by the Department into the Common School
869-14 Fund. The Department shall file quarterly fiscal reports
870-15 specifying the activity of this account as required under
871-16 Section 16 of the State Comptroller Act, and shall file
872-17 quarterly with the General Assembly, the Auditor General, the
873-18 Comptroller, and the State Treasurer a report indicating the
874-19 costs associated with this activity.
875-20 (b) The Department is authorized to enter into an
876-21 interagency agreement with the Office of the Comptroller or
877-22 any other State agency to establish responsibilities, duties,
878-23 and procedures for complying with the Comptroller's Offset
879-24 System under Section 10.05 of the State Comptroller Act. All
880-25 federal and State tax reporting and withholding requirements
881-26 relating to prize winners under this Section shall be the
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892-1 responsibility of the Department. Moneys from this account may
893-2 not be used to pay amounts to deferred prize winners. Moneys
894-3 may not be transferred from the State Lottery Fund to this
895-4 account for payment of prizes under this Section until
896-5 procedures are implemented to comply with the Comptroller's
897-6 Offset System and sufficient internal controls are in place to
898-7 validate prizes.
899-8 (Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
900-9 (20 ILCS 1605/24) (from Ch. 120, par. 1174)
901-10 Sec. 24. The State Comptroller shall conduct a preaudit of
902-11 all accounts and transactions of the Department in connection
903-12 with the operation of the State Lottery under the State
904-13 Comptroller Act, excluding payments issued by the Department
905-14 for prizes of $25,000 or less.
906-15 The Auditor General or a certified public accountant firm
907-16 appointed by him shall conduct an annual post-audit of all
908-17 accounts and transactions of the Department in connection with
909-18 the operation of the State Lottery and other special post
910-19 audits as the Auditor General, the Legislative Audit
911-20 Commission, or the General Assembly deems necessary. The
912-21 annual post-audits shall include payments made by lottery
913-22 sales agents of prizes of less than $600 or less authorized
914-23 under Section 20, and payments made by the Department of
915-24 prizes up to $25,000 authorized under Section 20.1. The
916-25 Auditor General or his agent conducting an audit under this
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927-1 Act shall have access and authority to examine any and all
928-2 records of the Department or the Board, its distributing
929-3 agents and its licensees.
930-4 (Source: P.A. 94-776, eff. 5-19-06.)
931-5 (20 ILCS 1605/27) (from Ch. 120, par. 1177)
932-6 Sec. 27. (a) The Department may State Treasurer may, with
933-7 the consent of the Director, contract with any person or
934-8 corporation, including, without limitation, a bank, banking
935-9 house, trust company or investment banking firm, to perform
936-10 such financial functions, activities or services in connection
937-11 with operation of the lottery. The State Treasurer may, with
938-12 the consent of the Director, act as an agent of the Department
939-13 to perform the financial functions as the Director may
940-14 prescribe as the State Treasurer and the Director may
941-15 prescribe.
942-16 (b) All proceeds from investments made pursuant to
943-17 contracts executed by the Department or the State Treasurer,
944-18 with the consent of the Director, to perform financial
945-19 functions, activities or services in connection with operation
946-20 of the lottery, shall be deposited and held by the State
947-21 Treasurer as ex-officio custodian thereof, separate and apart
948-22 from all public money or funds of this State in a special trust
949-23 fund outside the State treasury. Such trust fund shall be
950-24 known as the "Deferred Lottery Prize Winners Trust Fund", and
951-25 shall be administered by the Director.
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962-1 The Director shall, at such times and in such amounts as
963-2 shall be necessary, prepare and send to the State Comptroller
964-3 vouchers requesting payment from the Deferred Lottery Prize
965-4 Winners Trust Fund to deferred prize winners, in a manner that
966-5 will insure the timely payment of such amounts owed.
967-6 This Act shall constitute an irrevocable appropriation of
968-7 all amounts necessary for that purpose, and the irrevocable
969-8 and continuing authority for and direction to the Director and
970-9 the State Treasurer to make the necessary payments out of such
971-10 trust fund for that purpose.
972-11 (c) Moneys invested pursuant to subsection (a) of this
973-12 Section may be invested only in bonds, notes, certificates of
974-13 indebtedness, treasury bills, or other securities constituting
975-14 direct obligations of the United States of America and all
976-15 securities or obligations the prompt payment of principal and
977-16 interest of which is guaranteed by a pledge of the full faith
978-17 and credit of the United States of America. Interest earnings
979-18 on moneys in the Deferred Lottery Prize Winners Trust Fund
980-19 shall remain in such fund and be used to pay the winners of
981-20 lottery prizes deferred as to payment until such obligations
982-21 are discharged. Proceeds from bonds purchased and interest
983-22 accumulated as a result of a grand prize multi-state game
984-23 ticket that goes unclaimed will be transferred after the
985-24 termination of the relevant claim period directly from the
986-25 lottery's Deferred Lottery Prize Winners Trust Fund to each
987-26 respective multi-state partner state according to its
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