Illinois 2025-2026 Regular Session

Illinois House Bill HB2674 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2674 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED: See Index Amends the Illinois Lottery Law. Removes a provision that requires the Department of the Lottery to publish each January in the Illinois Register a list of all game-specific rules, play instructions, directives, operations manuals, brochures, or other game-specific publications issued by the Department during the previous year and instructions concerning how the public may obtain copies of these materials from the Department. Provides that written play instructions shall be made available on the Department's public website or by the Department by request (rather than made available through sales agents licensed to sell game tickets or shares). Makes a change in a provision that makes any organization in which specified individuals are to participate in the management or sales of lottery tickets or shares ineligible for any license under the Act. Provides that the State Lottery Fund shall receive from the sale of lottery tickets or shares consisting of the net of commissions and fees representing those expenses that are directly proportionate to the sale of tickets or shares at the agent location and prizes of $600 or less (rather than less than $600) which have been validly paid at the agent level. Provides that the Department may pay any prize (rather than prizes up to $25,000) from funds held by the Department in an account separate and apart from all public moneys of the State. Removes provisions allowing moneys in the account to be deposited by the Department into the Public Treasurers' Investment Pool or used to pay amounts to deferred prize winners. Allows the Department (rather than the State Treasurer with the consent of the Director of the Lottery) to contract with any person or corporation to perform such financial functions, activities, or services in connection with operation of the lottery. Allows, with the consent of the Director, the State Treasurer to act as an agent of the Department to perform the financial functions as the Director may prescribe. Removes language requiring the Director to prepare and send to the State Comptroller vouchers requesting payment from the Deferred Lottery Prize Winners Trust Fund to deferred prize winners. Removes certain deadlines related to private managers. In provisions concerning preaudits by the State Comptroller, removes a limitation that the provisions apply to payments for prizes of $25,000 or less. Makes other changes. LRB104 08891 LNS 18946 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2674 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED: See Index See Index Amends the Illinois Lottery Law. Removes a provision that requires the Department of the Lottery to publish each January in the Illinois Register a list of all game-specific rules, play instructions, directives, operations manuals, brochures, or other game-specific publications issued by the Department during the previous year and instructions concerning how the public may obtain copies of these materials from the Department. Provides that written play instructions shall be made available on the Department's public website or by the Department by request (rather than made available through sales agents licensed to sell game tickets or shares). Makes a change in a provision that makes any organization in which specified individuals are to participate in the management or sales of lottery tickets or shares ineligible for any license under the Act. Provides that the State Lottery Fund shall receive from the sale of lottery tickets or shares consisting of the net of commissions and fees representing those expenses that are directly proportionate to the sale of tickets or shares at the agent location and prizes of $600 or less (rather than less than $600) which have been validly paid at the agent level. Provides that the Department may pay any prize (rather than prizes up to $25,000) from funds held by the Department in an account separate and apart from all public moneys of the State. Removes provisions allowing moneys in the account to be deposited by the Department into the Public Treasurers' Investment Pool or used to pay amounts to deferred prize winners. Allows the Department (rather than the State Treasurer with the consent of the Director of the Lottery) to contract with any person or corporation to perform such financial functions, activities, or services in connection with operation of the lottery. Allows, with the consent of the Director, the State Treasurer to act as an agent of the Department to perform the financial functions as the Director may prescribe. Removes language requiring the Director to prepare and send to the State Comptroller vouchers requesting payment from the Deferred Lottery Prize Winners Trust Fund to deferred prize winners. Removes certain deadlines related to private managers. In provisions concerning preaudits by the State Comptroller, removes a limitation that the provisions apply to payments for prizes of $25,000 or less. Makes other changes. LRB104 08891 LNS 18946 b LRB104 08891 LNS 18946 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2674 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED:
33 See Index See Index
44 See Index
55 Amends the Illinois Lottery Law. Removes a provision that requires the Department of the Lottery to publish each January in the Illinois Register a list of all game-specific rules, play instructions, directives, operations manuals, brochures, or other game-specific publications issued by the Department during the previous year and instructions concerning how the public may obtain copies of these materials from the Department. Provides that written play instructions shall be made available on the Department's public website or by the Department by request (rather than made available through sales agents licensed to sell game tickets or shares). Makes a change in a provision that makes any organization in which specified individuals are to participate in the management or sales of lottery tickets or shares ineligible for any license under the Act. Provides that the State Lottery Fund shall receive from the sale of lottery tickets or shares consisting of the net of commissions and fees representing those expenses that are directly proportionate to the sale of tickets or shares at the agent location and prizes of $600 or less (rather than less than $600) which have been validly paid at the agent level. Provides that the Department may pay any prize (rather than prizes up to $25,000) from funds held by the Department in an account separate and apart from all public moneys of the State. Removes provisions allowing moneys in the account to be deposited by the Department into the Public Treasurers' Investment Pool or used to pay amounts to deferred prize winners. Allows the Department (rather than the State Treasurer with the consent of the Director of the Lottery) to contract with any person or corporation to perform such financial functions, activities, or services in connection with operation of the lottery. Allows, with the consent of the Director, the State Treasurer to act as an agent of the Department to perform the financial functions as the Director may prescribe. Removes language requiring the Director to prepare and send to the State Comptroller vouchers requesting payment from the Deferred Lottery Prize Winners Trust Fund to deferred prize winners. Removes certain deadlines related to private managers. In provisions concerning preaudits by the State Comptroller, removes a limitation that the provisions apply to payments for prizes of $25,000 or less. Makes other changes.
66 LRB104 08891 LNS 18946 b LRB104 08891 LNS 18946 b
77 LRB104 08891 LNS 18946 b
88 A BILL FOR
99 HB2674LRB104 08891 LNS 18946 b HB2674 LRB104 08891 LNS 18946 b
1010 HB2674 LRB104 08891 LNS 18946 b
1111 1 AN ACT concerning State government.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 5. The Illinois Lottery Law is amended by changing
1515 5 Sections 7.1, 9.1, 10.1, 10.6, 19, 20, 20.1, 24, and 27 as
1616 6 follows:
1717 7 (20 ILCS 1605/7.1) (from Ch. 120, par. 1157.1)
1818 8 Sec. 7.1. The Department shall promulgate such rules and
1919 9 regulations governing the establishment and operation of a
2020 10 State lottery as it deems necessary to carry out the purposes
2121 11 of this Act. Such rules and regulations shall be subject to the
2222 12 provisions of The Illinois Administrative Procedure Act. The
2323 13 Department shall issue written game rules, play instructions,
2424 14 directives, operations manuals, brochures, or any other
2525 15 publications necessary to conduct specific games, as
2626 16 authorized by rule by the Department. Any written game rules,
2727 17 play instructions, directives, operations manuals, brochures,
2828 18 or other game publications issued by the Department that
2929 19 relate to a specific lottery game shall be maintained as a
3030 20 public record in the Department's principal office, and made
3131 21 available for public inspection and copying but shall be
3232 22 exempt from the rulemaking procedures of the Illinois
3333 23 Administrative Procedure Act. However, when such written
3434
3535
3636
3737 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2674 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED:
3838 See Index See Index
3939 See Index
4040 Amends the Illinois Lottery Law. Removes a provision that requires the Department of the Lottery to publish each January in the Illinois Register a list of all game-specific rules, play instructions, directives, operations manuals, brochures, or other game-specific publications issued by the Department during the previous year and instructions concerning how the public may obtain copies of these materials from the Department. Provides that written play instructions shall be made available on the Department's public website or by the Department by request (rather than made available through sales agents licensed to sell game tickets or shares). Makes a change in a provision that makes any organization in which specified individuals are to participate in the management or sales of lottery tickets or shares ineligible for any license under the Act. Provides that the State Lottery Fund shall receive from the sale of lottery tickets or shares consisting of the net of commissions and fees representing those expenses that are directly proportionate to the sale of tickets or shares at the agent location and prizes of $600 or less (rather than less than $600) which have been validly paid at the agent level. Provides that the Department may pay any prize (rather than prizes up to $25,000) from funds held by the Department in an account separate and apart from all public moneys of the State. Removes provisions allowing moneys in the account to be deposited by the Department into the Public Treasurers' Investment Pool or used to pay amounts to deferred prize winners. Allows the Department (rather than the State Treasurer with the consent of the Director of the Lottery) to contract with any person or corporation to perform such financial functions, activities, or services in connection with operation of the lottery. Allows, with the consent of the Director, the State Treasurer to act as an agent of the Department to perform the financial functions as the Director may prescribe. Removes language requiring the Director to prepare and send to the State Comptroller vouchers requesting payment from the Deferred Lottery Prize Winners Trust Fund to deferred prize winners. Removes certain deadlines related to private managers. In provisions concerning preaudits by the State Comptroller, removes a limitation that the provisions apply to payments for prizes of $25,000 or less. Makes other changes.
4141 LRB104 08891 LNS 18946 b LRB104 08891 LNS 18946 b
4242 LRB104 08891 LNS 18946 b
4343 A BILL FOR
4444
4545
4646
4747
4848
4949 See Index
5050
5151
5252
5353 LRB104 08891 LNS 18946 b
5454
5555
5656
5757
5858
5959
6060
6161
6262
6363 HB2674 LRB104 08891 LNS 18946 b
6464
6565
6666 HB2674- 2 -LRB104 08891 LNS 18946 b HB2674 - 2 - LRB104 08891 LNS 18946 b
6767 HB2674 - 2 - LRB104 08891 LNS 18946 b
6868 1 materials contain any policy of general applicability, the
6969 2 Department shall formulate and adopt such policy as a rule in
7070 3 accordance with the provisions of the Illinois Administrative
7171 4 Procedure Act. In addition, the Department shall publish each
7272 5 January in the Illinois Register a list of all game-specific
7373 6 rules, play instructions, directives, operations manuals,
7474 7 brochures, or other game-specific publications issued by the
7575 8 Department during the previous year and instructions
7676 9 concerning how the public may obtain copies of these materials
7777 10 from the Department.
7878 11 (Source: P.A. 97-464, eff. 10-15-11.)
7979 12 (20 ILCS 1605/9.1)
8080 13 Sec. 9.1. Private manager and management agreement.
8181 14 (a) As used in this Section:
8282 15 "Offeror" means a person or group of persons that responds
8383 16 to a request for qualifications under this Section.
8484 17 "Request for qualifications" means all materials and
8585 18 documents prepared by the Department to solicit the following
8686 19 from offerors:
8787 20 (1) Statements of qualifications.
8888 21 (2) Proposals to enter into a management agreement,
8989 22 including the identity of any prospective vendor or
9090 23 vendors that the offeror intends to initially engage to
9191 24 assist the offeror in performing its obligations under the
9292 25 management agreement.
9393
9494
9595
9696
9797
9898 HB2674 - 2 - LRB104 08891 LNS 18946 b
9999
100100
101101 HB2674- 3 -LRB104 08891 LNS 18946 b HB2674 - 3 - LRB104 08891 LNS 18946 b
102102 HB2674 - 3 - LRB104 08891 LNS 18946 b
103103 1 "Final offer" means the last proposal submitted by an
104104 2 offeror in response to the request for qualifications,
105105 3 including the identity of any prospective vendor or vendors
106106 4 that the offeror intends to initially engage to assist the
107107 5 offeror in performing its obligations under the management
108108 6 agreement.
109109 7 "Final offeror" means the offeror ultimately selected by
110110 8 the Governor to be the private manager for the Lottery under
111111 9 subsection (h) of this Section.
112112 10 (b) (Blank). By September 15, 2010, the Governor shall
113113 11 select a private manager for the total management of the
114114 12 Lottery with integrated functions, such as lottery game
115115 13 design, supply of goods and services, and advertising and as
116116 14 specified in this Section.
117117 15 (c) (Blank). Pursuant to the terms of this subsection, the
118118 16 Department shall endeavor to expeditiously terminate the
119119 17 existing contracts in support of the Lottery in effect on July
120120 18 13, 2009 (the effective date of Public Act 96-37) in
121121 19 connection with the selection of the private manager. As part
122122 20 of its obligation to terminate these contracts and select the
123123 21 private manager, the Department shall establish a mutually
124124 22 agreeable timetable to transfer the functions of existing
125125 23 contractors to the private manager so that existing Lottery
126126 24 operations are not materially diminished or impaired during
127127 25 the transition. To that end, the Department shall do the
128128 26 following:
129129
130130
131131
132132
133133
134134 HB2674 - 3 - LRB104 08891 LNS 18946 b
135135
136136
137137 HB2674- 4 -LRB104 08891 LNS 18946 b HB2674 - 4 - LRB104 08891 LNS 18946 b
138138 HB2674 - 4 - LRB104 08891 LNS 18946 b
139139 1 (1) where such contracts contain a provision
140140 2 authorizing termination upon notice, the Department shall
141141 3 provide notice of termination to occur upon the mutually
142142 4 agreed timetable for transfer of functions;
143143 5 (2) upon the expiration of any initial term or renewal
144144 6 term of the current Lottery contracts, the Department
145145 7 shall not renew such contract for a term extending beyond
146146 8 the mutually agreed timetable for transfer of functions;
147147 9 or
148148 10 (3) in the event any current contract provides for
149149 11 termination of that contract upon the implementation of a
150150 12 contract with the private manager, the Department shall
151151 13 perform all necessary actions to terminate the contract on
152152 14 the date that coincides with the mutually agreed timetable
153153 15 for transfer of functions.
154154 16 If the contracts to support the current operation of the
155155 17 Lottery in effect on July 13, 2009 (the effective date of
156156 18 Public Act 96-34) are not subject to termination as provided
157157 19 for in this subsection (c), then the Department may include a
158158 20 provision in the contract with the private manager specifying
159159 21 a mutually agreeable methodology for incorporation.
160160 22 (c-5) The Department shall include provisions in the
161161 23 management agreement whereby the private manager shall, for a
162162 24 fee, and pursuant to a contract negotiated with the Department
163163 25 (the "Employee Use Contract"), utilize the services of current
164164 26 Department employees to assist in the administration and
165165
166166
167167
168168
169169
170170 HB2674 - 4 - LRB104 08891 LNS 18946 b
171171
172172
173173 HB2674- 5 -LRB104 08891 LNS 18946 b HB2674 - 5 - LRB104 08891 LNS 18946 b
174174 HB2674 - 5 - LRB104 08891 LNS 18946 b
175175 1 operation of the Lottery. The Department shall be the employer
176176 2 of all such bargaining unit employees assigned to perform such
177177 3 work for the private manager, and such employees shall be
178178 4 State employees, as defined by the Personnel Code. Department
179179 5 employees shall operate under the same employment policies,
180180 6 rules, regulations, and procedures, as other employees of the
181181 7 Department. In addition, neither historical representation
182182 8 rights under the Illinois Public Labor Relations Act, nor
183183 9 existing collective bargaining agreements, shall be disturbed
184184 10 by the management agreement with the private manager for the
185185 11 management of the Lottery.
186186 12 (d) The management agreement with the private manager
187187 13 shall include all of the following:
188188 14 (1) A term not to exceed 10 years, including any
189189 15 renewals.
190190 16 (2) A provision specifying that the Department:
191191 17 (A) shall exercise actual control over all
192192 18 significant business decisions;
193193 19 (A-5) has the authority to direct or countermand
194194 20 operating decisions by the private manager at any
195195 21 time;
196196 22 (B) has ready access at any time to information
197197 23 regarding Lottery operations;
198198 24 (C) has the right to demand and receive
199199 25 information from the private manager concerning any
200200 26 aspect of the Lottery operations at any time; and
201201
202202
203203
204204
205205
206206 HB2674 - 5 - LRB104 08891 LNS 18946 b
207207
208208
209209 HB2674- 6 -LRB104 08891 LNS 18946 b HB2674 - 6 - LRB104 08891 LNS 18946 b
210210 HB2674 - 6 - LRB104 08891 LNS 18946 b
211211 1 (D) retains ownership of all trade names,
212212 2 trademarks, and intellectual property associated with
213213 3 the Lottery.
214214 4 (3) A provision imposing an affirmative duty on the
215215 5 private manager to provide the Department with material
216216 6 information and with any information the private manager
217217 7 reasonably believes the Department would want to know to
218218 8 enable the Department to conduct the Lottery.
219219 9 (4) A provision requiring the private manager to
220220 10 provide the Department with advance notice of any
221221 11 operating decision that bears significantly on the public
222222 12 interest, including, but not limited to, decisions on the
223223 13 kinds of games to be offered to the public and decisions
224224 14 affecting the relative risk and reward of the games being
225225 15 offered, so the Department has a reasonable opportunity to
226226 16 evaluate and countermand that decision.
227227 17 (5) A provision providing for compensation of the
228228 18 private manager that may consist of, among other things, a
229229 19 fee for services and a performance based bonus as
230230 20 consideration for managing the Lottery, including terms
231231 21 that may provide the private manager with an increase in
232232 22 compensation if Lottery revenues grow by a specified
233233 23 percentage in a given year.
234234 24 (6) (Blank).
235235 25 (7) A provision requiring the deposit of all Lottery
236236 26 proceeds to be deposited into the State Lottery Fund
237237
238238
239239
240240
241241
242242 HB2674 - 6 - LRB104 08891 LNS 18946 b
243243
244244
245245 HB2674- 7 -LRB104 08891 LNS 18946 b HB2674 - 7 - LRB104 08891 LNS 18946 b
246246 HB2674 - 7 - LRB104 08891 LNS 18946 b
247247 1 except as otherwise provided in Section 20 of this Act.
248248 2 (8) A provision requiring the private manager to
249249 3 locate its principal office within the State.
250250 4 (8-5) A provision encouraging that, pursuant to
251251 5 Section 4 of the Business Enterprise for Minorities,
252252 6 Women, and Persons with Disabilities Act, at least 20% of
253253 7 the cost of contracts entered into for goods and services
254254 8 by the private manager in connection with its management
255255 9 of the Lottery, other than contracts with sales agents or
256256 10 technical advisors, be awarded to businesses that are a
257257 11 minority-owned business, a women-owned business, or a
258258 12 business owned by a person with disability, as those terms
259259 13 are defined in the Business Enterprise for Minorities,
260260 14 Women, and Persons with Disabilities Act.
261261 15 (9) A requirement that so long as the private manager
262262 16 complies with all the conditions of the agreement under
263263 17 the oversight of the Department, the private manager shall
264264 18 have the following duties and obligations with respect to
265265 19 the management of the Lottery:
266266 20 (A) The right to use equipment and other assets
267267 21 used in the operation of the Lottery.
268268 22 (B) The rights and obligations under contracts
269269 23 with retailers and vendors.
270270 24 (C) The implementation of a comprehensive security
271271 25 program by the private manager.
272272 26 (D) The implementation of a comprehensive system
273273
274274
275275
276276
277277
278278 HB2674 - 7 - LRB104 08891 LNS 18946 b
279279
280280
281281 HB2674- 8 -LRB104 08891 LNS 18946 b HB2674 - 8 - LRB104 08891 LNS 18946 b
282282 HB2674 - 8 - LRB104 08891 LNS 18946 b
283283 1 of internal audits.
284284 2 (E) The implementation of a program by the private
285285 3 manager to curb compulsive gambling by persons playing
286286 4 the Lottery.
287287 5 (F) A system for determining (i) the type of
288288 6 Lottery games, (ii) the method of selecting winning
289289 7 tickets, (iii) the manner of payment of prizes to
290290 8 holders of winning tickets, (iv) the frequency of
291291 9 drawings of winning tickets, (v) the method to be used
292292 10 in selling tickets, (vi) a system for verifying the
293293 11 validity of tickets claimed to be winning tickets,
294294 12 (vii) the basis upon which retailer commissions are
295295 13 established by the manager, and (viii) minimum
296296 14 payouts.
297297 15 (10) A requirement that advertising and promotion must
298298 16 be consistent with Section 7.8a of this Act.
299299 17 (11) A requirement that the private manager market the
300300 18 Lottery to those residents who are new, infrequent, or
301301 19 lapsed players of the Lottery, especially those who are
302302 20 most likely to make regular purchases on the Internet as
303303 21 permitted by law.
304304 22 (12) A code of ethics for the private manager's
305305 23 officers and employees.
306306 24 (13) A requirement that the Department monitor and
307307 25 oversee the private manager's practices and take action
308308 26 that the Department considers appropriate to ensure that
309309
310310
311311
312312
313313
314314 HB2674 - 8 - LRB104 08891 LNS 18946 b
315315
316316
317317 HB2674- 9 -LRB104 08891 LNS 18946 b HB2674 - 9 - LRB104 08891 LNS 18946 b
318318 HB2674 - 9 - LRB104 08891 LNS 18946 b
319319 1 the private manager is in compliance with the terms of the
320320 2 management agreement, while allowing the manager, unless
321321 3 specifically prohibited by law or the management
322322 4 agreement, to negotiate and sign its own contracts with
323323 5 vendors.
324324 6 (14) A provision requiring the private manager to
325325 7 periodically file, at least on an annual basis,
326326 8 appropriate financial statements in a form and manner
327327 9 acceptable to the Department.
328328 10 (15) Cash reserves requirements.
329329 11 (16) Procedural requirements for obtaining the prior
330330 12 approval of the Department when a management agreement or
331331 13 an interest in a management agreement is sold, assigned,
332332 14 transferred, or pledged as collateral to secure financing.
333333 15 (17) Grounds for the termination of the management
334334 16 agreement by the Department or the private manager.
335335 17 (18) Procedures for amendment of the agreement.
336336 18 (19) A provision requiring the private manager to
337337 19 engage in an open and competitive bidding process for any
338338 20 procurement having a cost in excess of the small purchase
339339 21 limits under Section 20-20 of the Illinois Procurement
340340 22 Code $50,000 that is not a part of the private manager's
341341 23 final offer. The process shall favor the selection of a
342342 24 vendor deemed to have submitted a proposal that provides
343343 25 the Lottery with the best overall value. The process shall
344344 26 not be subject to the provisions of the Illinois
345345
346346
347347
348348
349349
350350 HB2674 - 9 - LRB104 08891 LNS 18946 b
351351
352352
353353 HB2674- 10 -LRB104 08891 LNS 18946 b HB2674 - 10 - LRB104 08891 LNS 18946 b
354354 HB2674 - 10 - LRB104 08891 LNS 18946 b
355355 1 Procurement Code, unless specifically required by the
356356 2 management agreement.
357357 3 (20) The transition of rights and obligations,
358358 4 including any associated equipment or other assets used in
359359 5 the operation of the Lottery, from the manager to any
360360 6 successor manager of the lottery, including the
361361 7 Department, following the termination of or foreclosure
362362 8 upon the management agreement.
363363 9 (21) Right of use of copyrights, trademarks, and
364364 10 service marks held by the Department in the name of the
365365 11 State. The agreement must provide that any use of them by
366366 12 the manager shall only be for the purpose of fulfilling
367367 13 its obligations under the management agreement during the
368368 14 term of the agreement.
369369 15 (22) The disclosure of any information requested by
370370 16 the Department to enable it to comply with the reporting
371371 17 requirements and information requests provided for under
372372 18 subsection (p) of this Section.
373373 19 (e) Notwithstanding any other law to the contrary, the
374374 20 Department shall select a private manager through a
375375 21 competitive request for qualifications process consistent with
376376 22 Section 20-35 of the Illinois Procurement Code, which shall
377377 23 take into account:
378378 24 (1) the offeror's ability to market the Lottery to
379379 25 those residents who are new, infrequent, or lapsed players
380380 26 of the Lottery, especially those who are most likely to
381381
382382
383383
384384
385385
386386 HB2674 - 10 - LRB104 08891 LNS 18946 b
387387
388388
389389 HB2674- 11 -LRB104 08891 LNS 18946 b HB2674 - 11 - LRB104 08891 LNS 18946 b
390390 HB2674 - 11 - LRB104 08891 LNS 18946 b
391391 1 make regular purchases on the Internet;
392392 2 (2) the offeror's ability to address the State's
393393 3 concern with the social effects of gambling on those who
394394 4 can least afford to do so;
395395 5 (3) the offeror's ability to provide the most
396396 6 successful management of the Lottery for the benefit of
397397 7 the people of the State based on current and past business
398398 8 practices or plans of the offeror; and
399399 9 (4) the offeror's poor or inadequate past performance
400400 10 in servicing, equipping, operating or managing a lottery
401401 11 on behalf of Illinois, another State or foreign government
402402 12 and attracting persons who are not currently regular
403403 13 players of a lottery.
404404 14 (f) The Department may retain the services of an advisor
405405 15 or advisors with significant experience in financial services
406406 16 or the management, operation, and procurement of goods,
407407 17 services, and equipment for a government-run lottery to assist
408408 18 in the preparation of the terms of the request for
409409 19 qualifications and selection of the private manager. Any
410410 20 prospective advisor seeking to provide services under this
411411 21 subsection (f) shall disclose any material business or
412412 22 financial relationship during the past 3 years with any
413413 23 potential offeror, or with a contractor or subcontractor
414414 24 presently providing goods, services, or equipment to the
415415 25 Department to support the Lottery. The Department shall
416416 26 evaluate the material business or financial relationship of
417417
418418
419419
420420
421421
422422 HB2674 - 11 - LRB104 08891 LNS 18946 b
423423
424424
425425 HB2674- 12 -LRB104 08891 LNS 18946 b HB2674 - 12 - LRB104 08891 LNS 18946 b
426426 HB2674 - 12 - LRB104 08891 LNS 18946 b
427427 1 each prospective advisor. The Department shall not select any
428428 2 prospective advisor with a substantial business or financial
429429 3 relationship that the Department deems to impair the
430430 4 objectivity of the services to be provided by the prospective
431431 5 advisor. During the course of the advisor's engagement by the
432432 6 Department, and for a period of one year thereafter, the
433433 7 advisor shall not enter into any business or financial
434434 8 relationship with any offeror or any vendor identified to
435435 9 assist an offeror in performing its obligations under the
436436 10 management agreement. Any advisor retained by the Department
437437 11 shall be disqualified from being an offeror. The Department
438438 12 shall not include terms in the request for qualifications that
439439 13 provide a material advantage whether directly or indirectly to
440440 14 any potential offeror, or any contractor or subcontractor
441441 15 presently providing goods, services, or equipment to the
442442 16 Department to support the Lottery, including terms contained
443443 17 in previous responses to requests for proposals or
444444 18 qualifications submitted to Illinois, another State or foreign
445445 19 government when those terms are uniquely associated with a
446446 20 particular potential offeror, contractor, or subcontractor.
447447 21 The request for proposals offered by the Department on
448448 22 December 22, 2008 as "LOT08GAMESYS" and reference number
449449 23 "22016176" is declared void.
450450 24 (g) The Department shall select at least 2 offerors as
451451 25 finalists to potentially serve as the private manager no later
452452 26 than August 9, 2010. Upon making preliminary selections, the
453453
454454
455455
456456
457457
458458 HB2674 - 12 - LRB104 08891 LNS 18946 b
459459
460460
461461 HB2674- 13 -LRB104 08891 LNS 18946 b HB2674 - 13 - LRB104 08891 LNS 18946 b
462462 HB2674 - 13 - LRB104 08891 LNS 18946 b
463463 1 Department shall schedule a public hearing on the finalists'
464464 2 proposals and provide public notice of the hearing at least 7
465465 3 calendar days before the hearing. The notice must include all
466466 4 of the following:
467467 5 (1) The date, time, and place of the hearing.
468468 6 (2) The subject matter of the hearing.
469469 7 (3) A brief description of the management agreement to
470470 8 be awarded.
471471 9 (4) The identity of the offerors that have been
472472 10 selected as finalists to serve as the private manager.
473473 11 (5) The address and telephone number of the
474474 12 Department.
475475 13 (h) At the public hearing, the Department shall (i)
476476 14 provide sufficient time for each finalist to present and
477477 15 explain its proposal to the Department and the Governor or the
478478 16 Governor's designee, including an opportunity to respond to
479479 17 questions posed by the Department, Governor, or designee and
480480 18 (ii) allow the public and non-selected offerors to comment on
481481 19 the presentations. The Governor or a designee shall attend the
482482 20 public hearing. After the public hearing, the Department shall
483483 21 have 14 calendar days to recommend to the Governor whether a
484484 22 management agreement should be entered into with a particular
485485 23 finalist. After reviewing the Department's recommendation, the
486486 24 Governor may accept or reject the Department's recommendation,
487487 25 and shall select a final offeror as the private manager by
488488 26 publication of a notice in the Illinois Procurement Bulletin
489489
490490
491491
492492
493493
494494 HB2674 - 13 - LRB104 08891 LNS 18946 b
495495
496496
497497 HB2674- 14 -LRB104 08891 LNS 18946 b HB2674 - 14 - LRB104 08891 LNS 18946 b
498498 HB2674 - 14 - LRB104 08891 LNS 18946 b
499499 1 on or before September 15, 2010. The Governor shall include in
500500 2 the notice a detailed explanation and the reasons why the
501501 3 final offeror is superior to other offerors and will provide
502502 4 management services in a manner that best achieves the
503503 5 objectives of this Section. The Governor shall also sign the
504504 6 management agreement with the private manager.
505505 7 (i) Any action to contest the private manager selected by
506506 8 the Governor under this Section must be brought within 7
507507 9 calendar days after the publication of the notice of the
508508 10 designation of the private manager as provided in subsection
509509 11 (h) of this Section.
510510 12 (j) The Lottery shall remain, for so long as a private
511511 13 manager manages the Lottery in accordance with provisions of
512512 14 this Act, a Lottery conducted by the State, and the State shall
513513 15 not be authorized to sell or transfer the Lottery to a third
514514 16 party.
515515 17 (k) Any tangible personal property used exclusively in
516516 18 connection with the lottery that is owned by the Department
517517 19 and leased to the private manager shall be owned by the
518518 20 Department in the name of the State and shall be considered to
519519 21 be public property devoted to an essential public and
520520 22 governmental function.
521521 23 (l) The Department may exercise any of its powers under
522522 24 this Section or any other law as necessary or desirable for the
523523 25 execution of the Department's powers under this Section.
524524 26 (m) Neither this Section nor any management agreement
525525
526526
527527
528528
529529
530530 HB2674 - 14 - LRB104 08891 LNS 18946 b
531531
532532
533533 HB2674- 15 -LRB104 08891 LNS 18946 b HB2674 - 15 - LRB104 08891 LNS 18946 b
534534 HB2674 - 15 - LRB104 08891 LNS 18946 b
535535 1 entered into under this Section prohibits the General Assembly
536536 2 from authorizing forms of gambling that are not in direct
537537 3 competition with the Lottery. The forms of gambling authorized
538538 4 by Public Act 101-31 constitute authorized forms of gambling
539539 5 that are not in direct competition with the Lottery.
540540 6 (n) The private manager shall be subject to a complete
541541 7 investigation in the third, seventh, and tenth years of the
542542 8 agreement (if the agreement is for a 10-year term) by the
543543 9 Department in cooperation with the Auditor General to
544544 10 determine whether the private manager has complied with this
545545 11 Section and the management agreement. The private manager
546546 12 shall bear the cost of an investigation or reinvestigation of
547547 13 the private manager under this subsection.
548548 14 (o) The powers conferred by this Section are in addition
549549 15 and supplemental to the powers conferred by any other law. If
550550 16 any other law or rule is inconsistent with this Section,
551551 17 including, but not limited to, provisions of the Illinois
552552 18 Procurement Code, then this Section controls as to any
553553 19 management agreement entered into under this Section. This
554554 20 Section and any rules adopted under this Section contain full
555555 21 and complete authority for a management agreement between the
556556 22 Department and a private manager. No law, procedure,
557557 23 proceeding, publication, notice, consent, approval, order, or
558558 24 act by the Department or any other officer, Department,
559559 25 agency, or instrumentality of the State or any political
560560 26 subdivision is required for the Department to enter into a
561561
562562
563563
564564
565565
566566 HB2674 - 15 - LRB104 08891 LNS 18946 b
567567
568568
569569 HB2674- 16 -LRB104 08891 LNS 18946 b HB2674 - 16 - LRB104 08891 LNS 18946 b
570570 HB2674 - 16 - LRB104 08891 LNS 18946 b
571571 1 management agreement under this Section. This Section contains
572572 2 full and complete authority for the Department to approve any
573573 3 contracts entered into by a private manager with a vendor
574574 4 providing goods, services, or both goods and services to the
575575 5 private manager under the terms of the management agreement,
576576 6 including subcontractors of such vendors.
577577 7 Upon receipt of a written request from the Chief
578578 8 Procurement Officer, the Department shall provide to the Chief
579579 9 Procurement Officer a complete and un-redacted copy of the
580580 10 management agreement or any contract that is subject to the
581581 11 Department's approval authority under this subsection (o). The
582582 12 Department shall provide a copy of the agreement or contract
583583 13 to the Chief Procurement Officer in the time specified by the
584584 14 Chief Procurement Officer in his or her written request, but
585585 15 no later than 5 business days after the request is received by
586586 16 the Department. The Chief Procurement Officer must retain any
587587 17 portions of the management agreement or of any contract
588588 18 designated by the Department as confidential, proprietary, or
589589 19 trade secret information in complete confidence pursuant to
590590 20 subsection (g) of Section 7 of the Freedom of Information Act.
591591 21 The Department shall also provide the Chief Procurement
592592 22 Officer with reasonable advance written notice of any contract
593593 23 that is pending Department approval.
594594 24 Notwithstanding any other provision of this Section to the
595595 25 contrary, the Chief Procurement Officer shall adopt
596596 26 administrative rules, including emergency rules, to establish
597597
598598
599599
600600
601601
602602 HB2674 - 16 - LRB104 08891 LNS 18946 b
603603
604604
605605 HB2674- 17 -LRB104 08891 LNS 18946 b HB2674 - 17 - LRB104 08891 LNS 18946 b
606606 HB2674 - 17 - LRB104 08891 LNS 18946 b
607607 1 a procurement process to select a successor private manager if
608608 2 a private management agreement has been terminated. The
609609 3 selection process shall at a minimum take into account the
610610 4 criteria set forth in items (1) through (4) of subsection (e)
611611 5 of this Section and may include provisions consistent with
612612 6 subsections (f), (g), (h), and (i) of this Section. The Chief
613613 7 Procurement Officer shall also implement and administer the
614614 8 adopted selection process upon the termination of a private
615615 9 management agreement. The Department, after the Chief
616616 10 Procurement Officer certifies that the procurement process has
617617 11 been followed in accordance with the rules adopted under this
618618 12 subsection (o), shall select a final offeror as the private
619619 13 manager and sign the management agreement with the private
620620 14 manager.
621621 15 Through June 30, 2022, except as provided in Sections
622622 16 21.5, 21.6, 21.7, 21.8, 21.9, 21.10, 21.11, 21.12, and 21.13
623623 17 of this Act and Section 25-70 of the Sports Wagering Act, the
624624 18 Department shall distribute all proceeds of lottery tickets
625625 19 and shares sold in the following priority and manner:
626626 20 (1) The payment of prizes and retailer bonuses.
627627 21 (2) The payment of costs incurred in the operation and
628628 22 administration of the Lottery, including the payment of
629629 23 sums due to the private manager under the management
630630 24 agreement with the Department.
631631 25 (3) On the last day of each month or as soon thereafter
632632 26 as possible, the State Comptroller shall direct and the
633633
634634
635635
636636
637637
638638 HB2674 - 17 - LRB104 08891 LNS 18946 b
639639
640640
641641 HB2674- 18 -LRB104 08891 LNS 18946 b HB2674 - 18 - LRB104 08891 LNS 18946 b
642642 HB2674 - 18 - LRB104 08891 LNS 18946 b
643643 1 State Treasurer shall transfer from the State Lottery Fund
644644 2 to the Common School Fund an amount that is equal to the
645645 3 proceeds transferred in the corresponding month of fiscal
646646 4 year 2009, as adjusted for inflation, to the Common School
647647 5 Fund.
648648 6 (4) On or before September 30 of each fiscal year,
649649 7 deposit any estimated remaining proceeds from the prior
650650 8 fiscal year, subject to payments under items (1), (2), and
651651 9 (3), into the Capital Projects Fund. Beginning in fiscal
652652 10 year 2019, the amount deposited shall be increased or
653653 11 decreased each year by the amount the estimated payment
654654 12 differs from the amount determined from each year-end
655655 13 financial audit. Only remaining net deficits from prior
656656 14 fiscal years may reduce the requirement to deposit these
657657 15 funds, as determined by the annual financial audit.
658658 16 Beginning July 1, 2022, the Department shall distribute
659659 17 all proceeds of lottery tickets and shares sold in the manner
660660 18 and priority described in Section 9.3 of this Act, except that
661661 19 the Department shall make the deposit into the Capital
662662 20 Projects Fund that would have occurred under item (4) of this
663663 21 subsection (o) on or before September 30, 2022, but for the
664664 22 changes made to this subsection by Public Act 102-699.
665665 23 (p) The Department shall be subject to the following
666666 24 reporting and information request requirements:
667667 25 (1) the Department shall submit written quarterly
668668 26 reports to the Governor and the General Assembly on the
669669
670670
671671
672672
673673
674674 HB2674 - 18 - LRB104 08891 LNS 18946 b
675675
676676
677677 HB2674- 19 -LRB104 08891 LNS 18946 b HB2674 - 19 - LRB104 08891 LNS 18946 b
678678 HB2674 - 19 - LRB104 08891 LNS 18946 b
679679 1 activities and actions of the private manager selected
680680 2 under this Section;
681681 3 (2) upon request of the Chief Procurement Officer, the
682682 4 Department shall promptly produce information related to
683683 5 the procurement activities of the Department and the
684684 6 private manager requested by the Chief Procurement
685685 7 Officer; the Chief Procurement Officer must retain
686686 8 confidential, proprietary, or trade secret information
687687 9 designated by the Department in complete confidence
688688 10 pursuant to subsection (g) of Section 7 of the Freedom of
689689 11 Information Act; and
690690 12 (3) at least 30 days prior to the beginning of the
691691 13 Department's fiscal year, the Department shall prepare an
692692 14 annual written report on the activities of the private
693693 15 manager selected under this Section and deliver that
694694 16 report to the Governor and General Assembly.
695695 17 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
696696 18 101-561, eff. 8-23-19; 102-558, eff. 8-20-21; 102-699, eff.
697697 19 4-19-22; 102-1115, eff. 1-9-23.)
698698 20 (20 ILCS 1605/10.1) (from Ch. 120, par. 1160.1)
699699 21 Sec. 10.1. The following are ineligible for any license
700700 22 under this Act:
701701 23 (a) any person who has been convicted of a felony;
702702 24 (b) any person who is or has been a professional
703703 25 gambler or gambling promoter;
704704
705705
706706
707707
708708
709709 HB2674 - 19 - LRB104 08891 LNS 18946 b
710710
711711
712712 HB2674- 20 -LRB104 08891 LNS 18946 b HB2674 - 20 - LRB104 08891 LNS 18946 b
713713 HB2674 - 20 - LRB104 08891 LNS 18946 b
714714 1 (c) any person who has engaged in bookmaking or other
715715 2 forms of illegal gambling;
716716 3 (d) any person who is not of good character and
717717 4 reputation in the community in which he resides;
718718 5 (e) any person who has been found guilty of any fraud
719719 6 or misrepresentation in any connection;
720720 7 (f) any firm or corporation in which a person defined
721721 8 in item (a), (b), (c), (d), or (e) has a proprietary,
722722 9 equitable or credit interest of 5% or more; .
723723 10 (g) any organization in which a person defined in item
724724 11 (a), (b), (c), (d), or (e) is an officer, director, or
725725 12 managing agent, whether compensated or not; and
726726 13 (h) any organization in which a person defined in item
727727 14 (a), (b), (c), (d), or (e) is to participate in the
728728 15 management or sales of lottery tickets or shares.
729729 16 However, with respect to persons defined in (a), the
730730 17 Department may grant any such person a license under this Act
731731 18 when:
732732 19 1) at least 10 years have elapsed since the date when
733733 20 the sentence for the most recent such conviction was
734734 21 satisfactorily completed;
735735 22 2) the applicant has no history of criminal activity
736736 23 subsequent to such conviction;
737737 24 3) the applicant has complied with all conditions of
738738 25 probation, conditional discharge, supervision, parole or
739739 26 mandatory supervised release; and
740740
741741
742742
743743
744744
745745 HB2674 - 20 - LRB104 08891 LNS 18946 b
746746
747747
748748 HB2674- 21 -LRB104 08891 LNS 18946 b HB2674 - 21 - LRB104 08891 LNS 18946 b
749749 HB2674 - 21 - LRB104 08891 LNS 18946 b
750750 1 4) the applicant presents at least 3 letters of
751751 2 recommendation from responsible citizens in his community
752752 3 who personally can attest that the character and attitude
753753 4 of the applicant indicate that he is unlikely to commit
754754 5 another crime.
755755 6 The Department may revoke, without notice or a hearing,
756756 7 the license of any agent who violates this Act or any rule or
757757 8 regulation promulgated pursuant to this Act. However, if the
758758 9 Department does revoke a license without notice and an
759759 10 opportunity for a hearing, the Department shall, by
760760 11 appropriate notice, afford the person whose license has been
761761 12 revoked an opportunity for a hearing within 30 days after the
762762 13 revocation order has been issued. As a result of any such
763763 14 hearing, the Department may confirm its action in revoking the
764764 15 license, or it may order the restoration of such license.
765765 16 (Source: P.A. 97-464, eff. 10-15-11.)
766766 17 (20 ILCS 1605/10.6) (from Ch. 120, par. 1160.6)
767767 18 Sec. 10.6. The Department shall make an effort to more
768768 19 directly inform players of the odds of winning prizes by
769769 20 publishing the information for all games on the Department's
770770 21 public website. This effort shall include, at a minimum, that
771771 22 the Department require all ticket agents to display a placard
772772 23 stating the odds of winning for each game offered by that
773773 24 agent.
774774 25 (Source: P.A. 97-464, eff. 10-15-11.)
775775
776776
777777
778778
779779
780780 HB2674 - 21 - LRB104 08891 LNS 18946 b
781781
782782
783783 HB2674- 22 -LRB104 08891 LNS 18946 b HB2674 - 22 - LRB104 08891 LNS 18946 b
784784 HB2674 - 22 - LRB104 08891 LNS 18946 b
785785 1 (20 ILCS 1605/19) (from Ch. 120, par. 1169)
786786 2 Sec. 19. The Department shall establish an appropriate
787787 3 period for the claiming of prizes for each lottery game
788788 4 offered. Each claim period shall be stated in game rules and
789789 5 written play instructions issued by the Director in accordance
790790 6 with Section 7.1 of this Act. Written play instructions shall
791791 7 be made available on the Department's public website or by the
792792 8 Department by request to all players through sales agents
793793 9 licensed to sell game tickets or shares. Prizes for lottery
794794 10 games which involve the purchase of a physical lottery ticket
795795 11 may be claimed only by presentation of a valid winning lottery
796796 12 ticket that matches validation records on file with the
797797 13 Lottery; no claim may be honored which is based on the
798798 14 assertion that the ticket was lost or stolen. No lottery
799799 15 ticket which has been altered, mutilated, or fails to pass
800800 16 validation tests shall be deemed to be a winning ticket.
801801 17 If no claim is made for the money within the established
802802 18 claim period, the prize may be included in the prize pool of
803803 19 such special drawing or drawings as the Department may, from
804804 20 time to time, designate. Unclaimed multi-state game prize
805805 21 money may be included in the multi-state prize pool for such
806806 22 special drawing or drawings as the multi-state game directors
807807 23 may, from time to time, designate. Any bonuses offered by the
808808 24 Department to sales agents who sell winning tickets or shares
809809 25 shall be payable to such agents regardless of whether or not
810810
811811
812812
813813
814814
815815 HB2674 - 22 - LRB104 08891 LNS 18946 b
816816
817817
818818 HB2674- 23 -LRB104 08891 LNS 18946 b HB2674 - 23 - LRB104 08891 LNS 18946 b
819819 HB2674 - 23 - LRB104 08891 LNS 18946 b
820820 1 the prize money on the ticket or share is claimed, provided
821821 2 that the agent can be identified as the vendor of the winning
822822 3 ticket or share, and that the winning ticket or share was sold
823823 4 on or after January 1, 1984. All unclaimed prize money not
824824 5 included in the prize pool of a special drawing shall be
825825 6 transferred to the Common School Fund.
826826 7 (Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
827827 8 (20 ILCS 1605/20) (from Ch. 120, par. 1170)
828828 9 Sec. 20. State Lottery Fund.
829829 10 (a) There is created in the State Treasury a special fund
830830 11 to be known as the State Lottery Fund. Such fund shall consist
831831 12 of all revenues received from (1) the sale of lottery tickets
832832 13 or shares, (net of commissions, fees representing those
833833 14 expenses that are directly proportionate to the sale of
834834 15 tickets or shares at the agent location, and prizes of less
835835 16 than $600 or less which have been validly paid at the agent
836836 17 level), (2) application fees, and (3) all other sources
837837 18 including moneys credited or transferred thereto from any
838838 19 other fund or source pursuant to law. Interest earnings of the
839839 20 State Lottery Fund shall be credited to the Common School
840840 21 Fund.
841841 22 (a-5) The receipt and distribution of moneys under Section
842842 23 21.4 of this Act shall be in accordance with Section 21.4.
843843 24 (b) The receipt and distribution of moneys under Section
844844 25 21.5 of this Law shall be in accordance with Section 21.5.
845845
846846
847847
848848
849849
850850 HB2674 - 23 - LRB104 08891 LNS 18946 b
851851
852852
853853 HB2674- 24 -LRB104 08891 LNS 18946 b HB2674 - 24 - LRB104 08891 LNS 18946 b
854854 HB2674 - 24 - LRB104 08891 LNS 18946 b
855855 1 (c) The receipt and distribution of moneys under Section
856856 2 21.6 of this Law shall be in accordance with Section 21.6.
857857 3 (d) The receipt and distribution of moneys under Section
858858 4 21.7 of this Law shall be in accordance with Section 21.7.
859859 5 (e) The receipt and distribution of moneys under Section
860860 6 21.8 of this Law shall be in accordance with Section 21.8.
861861 7 (f) The receipt and distribution of moneys under Section
862862 8 21.9 of this Law shall be in accordance with Section 21.9.
863863 9 (g) The receipt and distribution of moneys under Section
864864 10 21.10 of this Law shall be in accordance with Section 21.10.
865865 11 (h) The receipt and distribution of moneys under Section
866866 12 21.11 of this Law shall be in accordance with Section 21.11.
867867 13 (i) (Blank).
868868 14 (j) The receipt and distribution of moneys under Section
869869 15 21.13 of this Law shall be in accordance with Section 21.13.
870870 16 (k) The receipt and distribution of moneys under Section
871871 17 25-70 of the Sports Wagering Act shall be in accordance with
872872 18 Section 25-70 of the Sports Wagering Act.
873873 19 (l) The receipt and distribution of moneys under Section
874874 20 21.15 of this Law shall be in accordance with Section 21.15.
875875 21 (m) The receipt and distribution of moneys under Section
876876 22 21.16 of this Law shall be in accordance with Section 21.16.
877877 23 (Source: P.A. 102-16, eff. 6-17-21; 103-381, eff. 7-28-23.)
878878 24 (20 ILCS 1605/20.1) (from Ch. 120, par. 1170.1)
879879 25 Sec. 20.1. Department account.
880880
881881
882882
883883
884884
885885 HB2674 - 24 - LRB104 08891 LNS 18946 b
886886
887887
888888 HB2674- 25 -LRB104 08891 LNS 18946 b HB2674 - 25 - LRB104 08891 LNS 18946 b
889889 HB2674 - 25 - LRB104 08891 LNS 18946 b
890890 1 (a) The Department is authorized to pay validated prizes
891891 2 up to $25,000 from funds held by the Department in an account
892892 3 separate and apart from all public moneys of the State. Moneys
893893 4 in this account shall be administered by the Director
894894 5 exclusively for the purposes of issuing payments to prize
895895 6 winners authorized by this Section. Moneys in this account
896896 7 shall be deposited by the Department into the Public
897897 8 Treasurers' Investment Pool established under Section 17 of
898898 9 the State Treasurer Act. The Department shall submit vouchers
899899 10 from time to time as needed for reimbursement of this account
900900 11 from moneys appropriated for prizes from the State Lottery
901901 12 Fund. Investment income earned from this account shall be
902902 13 deposited monthly by the Department into the Common School
903903 14 Fund. The Department shall file quarterly fiscal reports
904904 15 specifying the activity of this account as required under
905905 16 Section 16 of the State Comptroller Act, and shall file
906906 17 quarterly with the General Assembly, the Auditor General, the
907907 18 Comptroller, and the State Treasurer a report indicating the
908908 19 costs associated with this activity.
909909 20 (b) The Department is authorized to enter into an
910910 21 interagency agreement with the Office of the Comptroller or
911911 22 any other State agency to establish responsibilities, duties,
912912 23 and procedures for complying with the Comptroller's Offset
913913 24 System under Section 10.05 of the State Comptroller Act. All
914914 25 federal and State tax reporting and withholding requirements
915915 26 relating to prize winners under this Section shall be the
916916
917917
918918
919919
920920
921921 HB2674 - 25 - LRB104 08891 LNS 18946 b
922922
923923
924924 HB2674- 26 -LRB104 08891 LNS 18946 b HB2674 - 26 - LRB104 08891 LNS 18946 b
925925 HB2674 - 26 - LRB104 08891 LNS 18946 b
926926 1 responsibility of the Department. Moneys from this account may
927927 2 not be used to pay amounts to deferred prize winners. Moneys
928928 3 may not be transferred from the State Lottery Fund to this
929929 4 account for payment of prizes under this Section until
930930 5 procedures are implemented to comply with the Comptroller's
931931 6 Offset System and sufficient internal controls are in place to
932932 7 validate prizes.
933933 8 (Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
934934 9 (20 ILCS 1605/24) (from Ch. 120, par. 1174)
935935 10 Sec. 24. The State Comptroller shall conduct a preaudit of
936936 11 all accounts and transactions of the Department in connection
937937 12 with the operation of the State Lottery under the State
938938 13 Comptroller Act, excluding payments issued by the Department
939939 14 for prizes of $25,000 or less.
940940 15 The Auditor General or a certified public accountant firm
941941 16 appointed by him shall conduct an annual post-audit of all
942942 17 accounts and transactions of the Department in connection with
943943 18 the operation of the State Lottery and other special post
944944 19 audits as the Auditor General, the Legislative Audit
945945 20 Commission, or the General Assembly deems necessary. The
946946 21 annual post-audits shall include payments made by lottery
947947 22 sales agents of prizes of less than $600 or less authorized
948948 23 under Section 20, and payments made by the Department of
949949 24 prizes up to $25,000 authorized under Section 20.1. The
950950 25 Auditor General or his agent conducting an audit under this
951951
952952
953953
954954
955955
956956 HB2674 - 26 - LRB104 08891 LNS 18946 b
957957
958958
959959 HB2674- 27 -LRB104 08891 LNS 18946 b HB2674 - 27 - LRB104 08891 LNS 18946 b
960960 HB2674 - 27 - LRB104 08891 LNS 18946 b
961961 1 Act shall have access and authority to examine any and all
962962 2 records of the Department or the Board, its distributing
963963 3 agents and its licensees.
964964 4 (Source: P.A. 94-776, eff. 5-19-06.)
965965 5 (20 ILCS 1605/27) (from Ch. 120, par. 1177)
966966 6 Sec. 27. (a) The Department may State Treasurer may, with
967967 7 the consent of the Director, contract with any person or
968968 8 corporation, including, without limitation, a bank, banking
969969 9 house, trust company or investment banking firm, to perform
970970 10 such financial functions, activities or services in connection
971971 11 with operation of the lottery. The State Treasurer may, with
972972 12 the consent of the Director, act as an agent of the Department
973973 13 to perform the financial functions as the Director may
974974 14 prescribe as the State Treasurer and the Director may
975975 15 prescribe.
976976 16 (b) All proceeds from investments made pursuant to
977977 17 contracts executed by the Department or the State Treasurer,
978978 18 with the consent of the Director, to perform financial
979979 19 functions, activities or services in connection with operation
980980 20 of the lottery, shall be deposited and held by the State
981981 21 Treasurer as ex-officio custodian thereof, separate and apart
982982 22 from all public money or funds of this State in a special trust
983983 23 fund outside the State treasury. Such trust fund shall be
984984 24 known as the "Deferred Lottery Prize Winners Trust Fund", and
985985 25 shall be administered by the Director.
986986
987987
988988
989989
990990
991991 HB2674 - 27 - LRB104 08891 LNS 18946 b
992992
993993
994994 HB2674- 28 -LRB104 08891 LNS 18946 b HB2674 - 28 - LRB104 08891 LNS 18946 b
995995 HB2674 - 28 - LRB104 08891 LNS 18946 b
996996 1 The Director shall, at such times and in such amounts as
997997 2 shall be necessary, prepare and send to the State Comptroller
998998 3 vouchers requesting payment from the Deferred Lottery Prize
999999 4 Winners Trust Fund to deferred prize winners, in a manner that
10001000 5 will insure the timely payment of such amounts owed.
10011001 6 This Act shall constitute an irrevocable appropriation of
10021002 7 all amounts necessary for that purpose, and the irrevocable
10031003 8 and continuing authority for and direction to the Director and
10041004 9 the State Treasurer to make the necessary payments out of such
10051005 10 trust fund for that purpose.
10061006 11 (c) Moneys invested pursuant to subsection (a) of this
10071007 12 Section may be invested only in bonds, notes, certificates of
10081008 13 indebtedness, treasury bills, or other securities constituting
10091009 14 direct obligations of the United States of America and all
10101010 15 securities or obligations the prompt payment of principal and
10111011 16 interest of which is guaranteed by a pledge of the full faith
10121012 17 and credit of the United States of America. Interest earnings
10131013 18 on moneys in the Deferred Lottery Prize Winners Trust Fund
10141014 19 shall remain in such fund and be used to pay the winners of
10151015 20 lottery prizes deferred as to payment until such obligations
10161016 21 are discharged. Proceeds from bonds purchased and interest
10171017 22 accumulated as a result of a grand prize multi-state game
10181018 23 ticket that goes unclaimed will be transferred after the
10191019 24 termination of the relevant claim period directly from the
10201020 25 lottery's Deferred Lottery Prize Winners Trust Fund to each
10211021 26 respective multi-state partner state according to its
10221022
10231023
10241024
10251025
10261026
10271027 HB2674 - 28 - LRB104 08891 LNS 18946 b
10281028
10291029
10301030 HB2674- 29 -LRB104 08891 LNS 18946 b HB2674 - 29 - LRB104 08891 LNS 18946 b
10311031 HB2674 - 29 - LRB104 08891 LNS 18946 b
10321032 1 contribution ratio.
10331033 2 (c-5) If a deferred lottery prize is not claimed within
10341034 3 the claim period established by game rule, then the securities
10351035 4 or other instruments purchased to fund the prize shall be
10361036 5 liquidated and the liquidated amount shall be transferred to
10371037 6 the State Lottery Fund for disposition pursuant to Section 19
10381038 7 of this Act.
10391039 8 (c-10) The Director may use a portion of the moneys in the
10401040 9 Deferred Lottery Prize Winners Trust Fund to purchase bonds to
10411041 10 pay a lifetime prize if the prize duration exceeds the length
10421042 11 of available securities. If the winner of a lifetime prize
10431043 12 exceeds his or her life expectancy as determined using
10441044 13 actuarial assumptions and the securities or moneys set aside
10451045 14 to pay the prize have been exhausted, moneys in the State
10461046 15 Lottery Fund shall be used to make payments to the winner for
10471047 16 the duration of the winner's life.
10481048 17 (c-15) From time to time, the Director may request that
10491049 18 the State Comptroller transfer any excess moneys in the
10501050 19 Deferred Lottery Prize Winners Trust Fund to the State Lottery
10511051 20 Fund.
10521052 21 (d) This amendatory Act of 1985 shall be construed
10531053 22 liberally to effect the purposes of the Illinois Lottery Law.
10541054 23 (Source: P.A. 97-464, eff. 10-15-11; 98-463, eff. 8-16-13;
10551055 24 98-499, eff. 8-16-13.)
10561056 HB2674- 30 -LRB104 08891 LNS 18946 b 1 INDEX 2 Statutes amended in order of appearance HB2674- 30 -LRB104 08891 LNS 18946 b HB2674 - 30 - LRB104 08891 LNS 18946 b 1 INDEX 2 Statutes amended in order of appearance
10571057 HB2674- 30 -LRB104 08891 LNS 18946 b HB2674 - 30 - LRB104 08891 LNS 18946 b
10581058 HB2674 - 30 - LRB104 08891 LNS 18946 b
10591059 1 INDEX
10601060 2 Statutes amended in order of appearance
10611061
10621062
10631063
10641064
10651065
10661066 HB2674 - 29 - LRB104 08891 LNS 18946 b
10671067
10681068
10691069
10701070 HB2674- 30 -LRB104 08891 LNS 18946 b HB2674 - 30 - LRB104 08891 LNS 18946 b
10711071 HB2674 - 30 - LRB104 08891 LNS 18946 b
10721072 1 INDEX
10731073 2 Statutes amended in order of appearance
10741074
10751075
10761076
10771077
10781078
10791079 HB2674 - 30 - LRB104 08891 LNS 18946 b