Illinois 2025-2026 Regular Session

Illinois Senate Bill SB2147 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2147 Introduced 2/7/2025, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: 20 ILCS 1605/7.1 from Ch. 120, par. 1157.120 ILCS 1605/9.120 ILCS 1605/10.1 from Ch. 120, par. 1160.120 ILCS 1605/10.6 from Ch. 120, par. 1160.620 ILCS 1605/19 from Ch. 120, par. 116920 ILCS 1605/20 from Ch. 120, par. 117020 ILCS 1605/20.1 from Ch. 120, par. 1170.120 ILCS 1605/24 from Ch. 120, par. 117420 ILCS 1605/27 from Ch. 120, par. 1177 Amends the Illinois Lottery Law. Removes language providing that the Department of the Lottery shall 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. Removes provisions regarding the private manager. Provides that the Department shall make an effort to more directly inform players of the odds of winning prizes by publishing the information for all games on the Department's public website. Removes language providing that the effort to more directly inform players of the odds of winning prizes shall include the Department requiring all ticket agents to display a placard stating the odds of winning for each game offered by that agent. Provides that written play instructions shall be made available on the Department's public website or by the Department by request (rather than to all players through sales agents licensed to sell game tickets or shares). Removes language providing that moneys in the Department's account shall be deposited by the Department into the Public Treasurers' Investment Pool. Removes language providing that moneys from the Department's account may not be used to pay amounts to deferred prize winners. Allows the State Treasurer to act as an agent of the Department to perform financial functions. Removes language providing that the Director shall prepare and send to the State Comptroller vouchers requesting payment from the Deferred Lottery Prize Winners Trust Fund to deferred prize winners. Makes other changes. LRB104 08441 LNS 18493 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2147 Introduced 2/7/2025, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED: 20 ILCS 1605/7.1 from Ch. 120, par. 1157.120 ILCS 1605/9.120 ILCS 1605/10.1 from Ch. 120, par. 1160.120 ILCS 1605/10.6 from Ch. 120, par. 1160.620 ILCS 1605/19 from Ch. 120, par. 116920 ILCS 1605/20 from Ch. 120, par. 117020 ILCS 1605/20.1 from Ch. 120, par. 1170.120 ILCS 1605/24 from Ch. 120, par. 117420 ILCS 1605/27 from Ch. 120, par. 1177 20 ILCS 1605/7.1 from Ch. 120, par. 1157.1 20 ILCS 1605/9.1 20 ILCS 1605/10.1 from Ch. 120, par. 1160.1 20 ILCS 1605/10.6 from Ch. 120, par. 1160.6 20 ILCS 1605/19 from Ch. 120, par. 1169 20 ILCS 1605/20 from Ch. 120, par. 1170 20 ILCS 1605/20.1 from Ch. 120, par. 1170.1 20 ILCS 1605/24 from Ch. 120, par. 1174 20 ILCS 1605/27 from Ch. 120, par. 1177 Amends the Illinois Lottery Law. Removes language providing that the Department of the Lottery shall 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. Removes provisions regarding the private manager. Provides that the Department shall make an effort to more directly inform players of the odds of winning prizes by publishing the information for all games on the Department's public website. Removes language providing that the effort to more directly inform players of the odds of winning prizes shall include the Department requiring all ticket agents to display a placard stating the odds of winning for each game offered by that agent. Provides that written play instructions shall be made available on the Department's public website or by the Department by request (rather than to all players through sales agents licensed to sell game tickets or shares). Removes language providing that moneys in the Department's account shall be deposited by the Department into the Public Treasurers' Investment Pool. Removes language providing that moneys from the Department's account may not be used to pay amounts to deferred prize winners. Allows the State Treasurer to act as an agent of the Department to perform financial functions. Removes language providing that the Director shall prepare and send to the State Comptroller vouchers requesting payment from the Deferred Lottery Prize Winners Trust Fund to deferred prize winners. Makes other changes. LRB104 08441 LNS 18493 b LRB104 08441 LNS 18493 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2147 Introduced 2/7/2025, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
3	3	20 ILCS 1605/7.1 from Ch. 120, par. 1157.120 ILCS 1605/9.120 ILCS 1605/10.1 from Ch. 120, par. 1160.120 ILCS 1605/10.6 from Ch. 120, par. 1160.620 ILCS 1605/19 from Ch. 120, par. 116920 ILCS 1605/20 from Ch. 120, par. 117020 ILCS 1605/20.1 from Ch. 120, par. 1170.120 ILCS 1605/24 from Ch. 120, par. 117420 ILCS 1605/27 from Ch. 120, par. 1177 20 ILCS 1605/7.1 from Ch. 120, par. 1157.1 20 ILCS 1605/9.1 20 ILCS 1605/10.1 from Ch. 120, par. 1160.1 20 ILCS 1605/10.6 from Ch. 120, par. 1160.6 20 ILCS 1605/19 from Ch. 120, par. 1169 20 ILCS 1605/20 from Ch. 120, par. 1170 20 ILCS 1605/20.1 from Ch. 120, par. 1170.1 20 ILCS 1605/24 from Ch. 120, par. 1174 20 ILCS 1605/27 from Ch. 120, par. 1177
4	4	20 ILCS 1605/7.1 from Ch. 120, par. 1157.1
5	5	20 ILCS 1605/9.1
6	6	20 ILCS 1605/10.1 from Ch. 120, par. 1160.1
7	7	20 ILCS 1605/10.6 from Ch. 120, par. 1160.6
8	8	20 ILCS 1605/19 from Ch. 120, par. 1169
9	9	20 ILCS 1605/20 from Ch. 120, par. 1170
10	10	20 ILCS 1605/20.1 from Ch. 120, par. 1170.1
11	11	20 ILCS 1605/24 from Ch. 120, par. 1174
12	12	20 ILCS 1605/27 from Ch. 120, par. 1177
13	13	Amends the Illinois Lottery Law. Removes language providing that the Department of the Lottery shall 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. Removes provisions regarding the private manager. Provides that the Department shall make an effort to more directly inform players of the odds of winning prizes by publishing the information for all games on the Department's public website. Removes language providing that the effort to more directly inform players of the odds of winning prizes shall include the Department requiring all ticket agents to display a placard stating the odds of winning for each game offered by that agent. Provides that written play instructions shall be made available on the Department's public website or by the Department by request (rather than to all players through sales agents licensed to sell game tickets or shares). Removes language providing that moneys in the Department's account shall be deposited by the Department into the Public Treasurers' Investment Pool. Removes language providing that moneys from the Department's account may not be used to pay amounts to deferred prize winners. Allows the State Treasurer to act as an agent of the Department to perform financial functions. Removes language providing that the Director shall prepare and send to the State Comptroller vouchers requesting payment from the Deferred Lottery Prize Winners Trust Fund to deferred prize winners. Makes other changes.
14	14	LRB104 08441 LNS 18493 b LRB104 08441 LNS 18493 b
15	15	LRB104 08441 LNS 18493 b
16	16	A BILL FOR
17	17	SB2147LRB104 08441 LNS 18493 b SB2147 LRB104 08441 LNS 18493 b
18	18	SB2147 LRB104 08441 LNS 18493 b
19	19	1 AN ACT concerning State government.
20	20	2 Be it enacted by the People of the State of Illinois,
21	21	3 represented in the General Assembly:
22	22	4 Section 5. The Illinois Lottery Law is amended by changing
23	23	5 Sections 7.1, 9.1, 10.1, 10.6, 19, 20, 20.1, 24, and 27 as
24	24	6 follows:
25	25	7 (20 ILCS 1605/7.1) (from Ch. 120, par. 1157.1)
26	26	8 Sec. 7.1. The Department shall promulgate such rules and
27	27	9 regulations governing the establishment and operation of a
28	28	10 State lottery as it deems necessary to carry out the purposes
29	29	11 of this Act. Such rules and regulations shall be subject to the
30	30	12 provisions of The Illinois Administrative Procedure Act. The
31	31	13 Department shall issue written game rules, play instructions,
32	32	14 directives, operations manuals, brochures, or any other
33	33	15 publications necessary to conduct specific games, as
34	34	16 authorized by rule by the Department. Any written game rules,
35	35	17 play instructions, directives, operations manuals, brochures,
36	36	18 or other game publications issued by the Department that
37	37	19 relate to a specific lottery game shall be maintained as a
38	38	20 public record in the Department's principal office, and made
39	39	21 available for public inspection and copying but shall be
40	40	22 exempt from the rulemaking procedures of the Illinois
41	41	23 Administrative Procedure Act. However, when such written
42	42
43	43
44	44
45	45	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2147 Introduced 2/7/2025, by Sen. Bill Cunningham SYNOPSIS AS INTRODUCED:
46	46	20 ILCS 1605/7.1 from Ch. 120, par. 1157.120 ILCS 1605/9.120 ILCS 1605/10.1 from Ch. 120, par. 1160.120 ILCS 1605/10.6 from Ch. 120, par. 1160.620 ILCS 1605/19 from Ch. 120, par. 116920 ILCS 1605/20 from Ch. 120, par. 117020 ILCS 1605/20.1 from Ch. 120, par. 1170.120 ILCS 1605/24 from Ch. 120, par. 117420 ILCS 1605/27 from Ch. 120, par. 1177 20 ILCS 1605/7.1 from Ch. 120, par. 1157.1 20 ILCS 1605/9.1 20 ILCS 1605/10.1 from Ch. 120, par. 1160.1 20 ILCS 1605/10.6 from Ch. 120, par. 1160.6 20 ILCS 1605/19 from Ch. 120, par. 1169 20 ILCS 1605/20 from Ch. 120, par. 1170 20 ILCS 1605/20.1 from Ch. 120, par. 1170.1 20 ILCS 1605/24 from Ch. 120, par. 1174 20 ILCS 1605/27 from Ch. 120, par. 1177
47	47	20 ILCS 1605/7.1 from Ch. 120, par. 1157.1
48	48	20 ILCS 1605/9.1
49	49	20 ILCS 1605/10.1 from Ch. 120, par. 1160.1
50	50	20 ILCS 1605/10.6 from Ch. 120, par. 1160.6
51	51	20 ILCS 1605/19 from Ch. 120, par. 1169
52	52	20 ILCS 1605/20 from Ch. 120, par. 1170
53	53	20 ILCS 1605/20.1 from Ch. 120, par. 1170.1
54	54	20 ILCS 1605/24 from Ch. 120, par. 1174
55	55	20 ILCS 1605/27 from Ch. 120, par. 1177
56	56	Amends the Illinois Lottery Law. Removes language providing that the Department of the Lottery shall 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. Removes provisions regarding the private manager. Provides that the Department shall make an effort to more directly inform players of the odds of winning prizes by publishing the information for all games on the Department's public website. Removes language providing that the effort to more directly inform players of the odds of winning prizes shall include the Department requiring all ticket agents to display a placard stating the odds of winning for each game offered by that agent. Provides that written play instructions shall be made available on the Department's public website or by the Department by request (rather than to all players through sales agents licensed to sell game tickets or shares). Removes language providing that moneys in the Department's account shall be deposited by the Department into the Public Treasurers' Investment Pool. Removes language providing that moneys from the Department's account may not be used to pay amounts to deferred prize winners. Allows the State Treasurer to act as an agent of the Department to perform financial functions. Removes language providing that the Director shall prepare and send to the State Comptroller vouchers requesting payment from the Deferred Lottery Prize Winners Trust Fund to deferred prize winners. Makes other changes.
57	57	LRB104 08441 LNS 18493 b LRB104 08441 LNS 18493 b
58	58	LRB104 08441 LNS 18493 b
59	59	A BILL FOR
60	60
61	61
62	62
63	63
64	64
65	65	20 ILCS 1605/7.1 from Ch. 120, par. 1157.1
66	66	20 ILCS 1605/9.1
67	67	20 ILCS 1605/10.1 from Ch. 120, par. 1160.1
68	68	20 ILCS 1605/10.6 from Ch. 120, par. 1160.6
69	69	20 ILCS 1605/19 from Ch. 120, par. 1169
70	70	20 ILCS 1605/20 from Ch. 120, par. 1170
71	71	20 ILCS 1605/20.1 from Ch. 120, par. 1170.1
72	72	20 ILCS 1605/24 from Ch. 120, par. 1174
73	73	20 ILCS 1605/27 from Ch. 120, par. 1177
74	74
75	75
76	76
77	77	LRB104 08441 LNS 18493 b
78	78
79	79
80	80
81	81
82	82
83	83
84	84
85	85
86	86
87	87	SB2147 LRB104 08441 LNS 18493 b
88	88
89	89
90	90	SB2147- 2 -LRB104 08441 LNS 18493 b SB2147 - 2 - LRB104 08441 LNS 18493 b
91	91	SB2147 - 2 - LRB104 08441 LNS 18493 b
92	92	1 materials contain any policy of general applicability, the
93	93	2 Department shall formulate and adopt such policy as a rule in
94	94	3 accordance with the provisions of the Illinois Administrative
95	95	4 Procedure Act. In addition, the Department shall publish each
96	96	5 January in the Illinois Register a list of all game-specific
97	97	6 rules, play instructions, directives, operations manuals,
98	98	7 brochures, or other game-specific publications issued by the
99	99	8 Department during the previous year and instructions
100	100	9 concerning how the public may obtain copies of these materials
101	101	10 from the Department.
102	102	11 (Source: P.A. 97-464, eff. 10-15-11.)
103	103	12 (20 ILCS 1605/9.1)
104	104	13 Sec. 9.1. Private manager and management agreement.
105	105	14 (a) As used in this Section:
106	106	15 "Offeror" means a person or group of persons that responds
107	107	16 to a request for qualifications under this Section.
108	108	17 "Request for qualifications" means all materials and
109	109	18 documents prepared by the Department to solicit the following
110	110	19 from offerors:
111	111	20 (1) Statements of qualifications.
112	112	21 (2) Proposals to enter into a management agreement,
113	113	22 including the identity of any prospective vendor or
114	114	23 vendors that the offeror intends to initially engage to
115	115	24 assist the offeror in performing its obligations under the
116	116	25 management agreement.
117	117
118	118
119	119
120	120
121	121
122	122	SB2147 - 2 - LRB104 08441 LNS 18493 b
123	123
124	124
125	125	SB2147- 3 -LRB104 08441 LNS 18493 b SB2147 - 3 - LRB104 08441 LNS 18493 b
126	126	SB2147 - 3 - LRB104 08441 LNS 18493 b
127	127	1 "Final offer" means the last proposal submitted by an
128	128	2 offeror in response to the request for qualifications,
129	129	3 including the identity of any prospective vendor or vendors
130	130	4 that the offeror intends to initially engage to assist the
131	131	5 offeror in performing its obligations under the management
132	132	6 agreement.
133	133	7 "Final offeror" means the offeror ultimately selected by
134	134	8 the Governor to be the private manager for the Lottery under
135	135	9 subsection (h) of this Section.
136	136	10 (b) (Blank). By September 15, 2010, the Governor shall
137	137	11 select a private manager for the total management of the
138	138	12 Lottery with integrated functions, such as lottery game
139	139	13 design, supply of goods and services, and advertising and as
140	140	14 specified in this Section.
141	141	15 (c) (Blank). Pursuant to the terms of this subsection, the
142	142	16 Department shall endeavor to expeditiously terminate the
143	143	17 existing contracts in support of the Lottery in effect on July
144	144	18 13, 2009 (the effective date of Public Act 96-37) in
145	145	19 connection with the selection of the private manager. As part
146	146	20 of its obligation to terminate these contracts and select the
147	147	21 private manager, the Department shall establish a mutually
148	148	22 agreeable timetable to transfer the functions of existing
149	149	23 contractors to the private manager so that existing Lottery
150	150	24 operations are not materially diminished or impaired during
151	151	25 the transition. To that end, the Department shall do the
152	152	26 following:
153	153
154	154
155	155
156	156
157	157
158	158	SB2147 - 3 - LRB104 08441 LNS 18493 b
159	159
160	160
161	161	SB2147- 4 -LRB104 08441 LNS 18493 b SB2147 - 4 - LRB104 08441 LNS 18493 b
162	162	SB2147 - 4 - LRB104 08441 LNS 18493 b
163	163	1 (1) where such contracts contain a provision
164	164	2 authorizing termination upon notice, the Department shall
165	165	3 provide notice of termination to occur upon the mutually
166	166	4 agreed timetable for transfer of functions;
167	167	5 (2) upon the expiration of any initial term or renewal
168	168	6 term of the current Lottery contracts, the Department
169	169	7 shall not renew such contract for a term extending beyond
170	170	8 the mutually agreed timetable for transfer of functions;
171	171	9 or
172	172	10 (3) in the event any current contract provides for
173	173	11 termination of that contract upon the implementation of a
174	174	12 contract with the private manager, the Department shall
175	175	13 perform all necessary actions to terminate the contract on
176	176	14 the date that coincides with the mutually agreed timetable
177	177	15 for transfer of functions.
178	178	16 If the contracts to support the current operation of the
179	179	17 Lottery in effect on July 13, 2009 (the effective date of
180	180	18 Public Act 96-34) are not subject to termination as provided
181	181	19 for in this subsection (c), then the Department may include a
182	182	20 provision in the contract with the private manager specifying
183	183	21 a mutually agreeable methodology for incorporation.
184	184	22 (c-5) The Department shall include provisions in the
185	185	23 management agreement whereby the private manager shall, for a
186	186	24 fee, and pursuant to a contract negotiated with the Department
187	187	25 (the "Employee Use Contract"), utilize the services of current
188	188	26 Department employees to assist in the administration and
189	189
190	190
191	191
192	192
193	193
194	194	SB2147 - 4 - LRB104 08441 LNS 18493 b
195	195
196	196
197	197	SB2147- 5 -LRB104 08441 LNS 18493 b SB2147 - 5 - LRB104 08441 LNS 18493 b
198	198	SB2147 - 5 - LRB104 08441 LNS 18493 b
199	199	1 operation of the Lottery. The Department shall be the employer
200	200	2 of all such bargaining unit employees assigned to perform such
201	201	3 work for the private manager, and such employees shall be
202	202	4 State employees, as defined by the Personnel Code. Department
203	203	5 employees shall operate under the same employment policies,
204	204	6 rules, regulations, and procedures, as other employees of the
205	205	7 Department. In addition, neither historical representation
206	206	8 rights under the Illinois Public Labor Relations Act, nor
207	207	9 existing collective bargaining agreements, shall be disturbed
208	208	10 by the management agreement with the private manager for the
209	209	11 management of the Lottery.
210	210	12 (d) The management agreement with the private manager
211	211	13 shall include all of the following:
212	212	14 (1) A term not to exceed 10 years, including any
213	213	15 renewals.
214	214	16 (2) A provision specifying that the Department:
215	215	17 (A) shall exercise actual control over all
216	216	18 significant business decisions;
217	217	19 (A-5) has the authority to direct or countermand
218	218	20 operating decisions by the private manager at any
219	219	21 time;
220	220	22 (B) has ready access at any time to information
221	221	23 regarding Lottery operations;
222	222	24 (C) has the right to demand and receive
223	223	25 information from the private manager concerning any
224	224	26 aspect of the Lottery operations at any time; and
225	225
226	226
227	227
228	228
229	229
230	230	SB2147 - 5 - LRB104 08441 LNS 18493 b
231	231
232	232
233	233	SB2147- 6 -LRB104 08441 LNS 18493 b SB2147 - 6 - LRB104 08441 LNS 18493 b
234	234	SB2147 - 6 - LRB104 08441 LNS 18493 b
235	235	1 (D) retains ownership of all trade names,
236	236	2 trademarks, and intellectual property associated with
237	237	3 the Lottery.
238	238	4 (3) A provision imposing an affirmative duty on the
239	239	5 private manager to provide the Department with material
240	240	6 information and with any information the private manager
241	241	7 reasonably believes the Department would want to know to
242	242	8 enable the Department to conduct the Lottery.
243	243	9 (4) A provision requiring the private manager to
244	244	10 provide the Department with advance notice of any
245	245	11 operating decision that bears significantly on the public
246	246	12 interest, including, but not limited to, decisions on the
247	247	13 kinds of games to be offered to the public and decisions
248	248	14 affecting the relative risk and reward of the games being
249	249	15 offered, so the Department has a reasonable opportunity to
250	250	16 evaluate and countermand that decision.
251	251	17 (5) A provision providing for compensation of the
252	252	18 private manager that may consist of, among other things, a
253	253	19 fee for services and a performance based bonus as
254	254	20 consideration for managing the Lottery, including terms
255	255	21 that may provide the private manager with an increase in
256	256	22 compensation if Lottery revenues grow by a specified
257	257	23 percentage in a given year.
258	258	24 (6) (Blank).
259	259	25 (7) A provision requiring the deposit of all Lottery
260	260	26 proceeds to be deposited into the State Lottery Fund
261	261
262	262
263	263
264	264
265	265
266	266	SB2147 - 6 - LRB104 08441 LNS 18493 b
267	267
268	268
269	269	SB2147- 7 -LRB104 08441 LNS 18493 b SB2147 - 7 - LRB104 08441 LNS 18493 b
270	270	SB2147 - 7 - LRB104 08441 LNS 18493 b
271	271	1 except as otherwise provided in Section 20 of this Act.
272	272	2 (8) A provision requiring the private manager to
273	273	3 locate its principal office within the State.
274	274	4 (8-5) A provision encouraging that, pursuant to
275	275	5 Section 4 of the Business Enterprise for Minorities,
276	276	6 Women, and Persons with Disabilities Act, at least 20% of
277	277	7 the cost of contracts entered into for goods and services
278	278	8 by the private manager in connection with its management
279	279	9 of the Lottery, other than contracts with sales agents or
280	280	10 technical advisors, be awarded to businesses that are a
281	281	11 minority-owned business, a women-owned business, or a
282	282	12 business owned by a person with disability, as those terms
283	283	13 are defined in the Business Enterprise for Minorities,
284	284	14 Women, and Persons with Disabilities Act.
285	285	15 (9) A requirement that so long as the private manager
286	286	16 complies with all the conditions of the agreement under
287	287	17 the oversight of the Department, the private manager shall
288	288	18 have the following duties and obligations with respect to
289	289	19 the management of the Lottery:
290	290	20 (A) The right to use equipment and other assets
291	291	21 used in the operation of the Lottery.
292	292	22 (B) The rights and obligations under contracts
293	293	23 with retailers and vendors.
294	294	24 (C) The implementation of a comprehensive security
295	295	25 program by the private manager.
296	296	26 (D) The implementation of a comprehensive system
297	297
298	298
299	299
300	300
301	301
302	302	SB2147 - 7 - LRB104 08441 LNS 18493 b
303	303
304	304
305	305	SB2147- 8 -LRB104 08441 LNS 18493 b SB2147 - 8 - LRB104 08441 LNS 18493 b
306	306	SB2147 - 8 - LRB104 08441 LNS 18493 b
307	307	1 of internal audits.
308	308	2 (E) The implementation of a program by the private
309	309	3 manager to curb compulsive gambling by persons playing
310	310	4 the Lottery.
311	311	5 (F) A system for determining (i) the type of
312	312	6 Lottery games, (ii) the method of selecting winning
313	313	7 tickets, (iii) the manner of payment of prizes to
314	314	8 holders of winning tickets, (iv) the frequency of
315	315	9 drawings of winning tickets, (v) the method to be used
316	316	10 in selling tickets, (vi) a system for verifying the
317	317	11 validity of tickets claimed to be winning tickets,
318	318	12 (vii) the basis upon which retailer commissions are
319	319	13 established by the manager, and (viii) minimum
320	320	14 payouts.
321	321	15 (10) A requirement that advertising and promotion must
322	322	16 be consistent with Section 7.8a of this Act.
323	323	17 (11) A requirement that the private manager market the
324	324	18 Lottery to those residents who are new, infrequent, or
325	325	19 lapsed players of the Lottery, especially those who are
326	326	20 most likely to make regular purchases on the Internet as
327	327	21 permitted by law.
328	328	22 (12) A code of ethics for the private manager's
329	329	23 officers and employees.
330	330	24 (13) A requirement that the Department monitor and
331	331	25 oversee the private manager's practices and take action
332	332	26 that the Department considers appropriate to ensure that
333	333
334	334
335	335
336	336
337	337
338	338	SB2147 - 8 - LRB104 08441 LNS 18493 b
339	339
340	340
341	341	SB2147- 9 -LRB104 08441 LNS 18493 b SB2147 - 9 - LRB104 08441 LNS 18493 b
342	342	SB2147 - 9 - LRB104 08441 LNS 18493 b
343	343	1 the private manager is in compliance with the terms of the
344	344	2 management agreement, while allowing the manager, unless
345	345	3 specifically prohibited by law or the management
346	346	4 agreement, to negotiate and sign its own contracts with
347	347	5 vendors.
348	348	6 (14) A provision requiring the private manager to
349	349	7 periodically file, at least on an annual basis,
350	350	8 appropriate financial statements in a form and manner
351	351	9 acceptable to the Department.
352	352	10 (15) Cash reserves requirements.
353	353	11 (16) Procedural requirements for obtaining the prior
354	354	12 approval of the Department when a management agreement or
355	355	13 an interest in a management agreement is sold, assigned,
356	356	14 transferred, or pledged as collateral to secure financing.
357	357	15 (17) Grounds for the termination of the management
358	358	16 agreement by the Department or the private manager.
359	359	17 (18) Procedures for amendment of the agreement.
360	360	18 (19) A provision requiring the private manager to
361	361	19 engage in an open and competitive bidding process for any
362	362	20 procurement having a cost in excess of the small purchase
363	363	21 limits under Section 20-20 of the Illinois Procurement
364	364	22 Code $50,000 that is not a part of the private manager's
365	365	23 final offer. The process shall favor the selection of a
366	366	24 vendor deemed to have submitted a proposal that provides
367	367	25 the Lottery with the best overall value. The process shall
368	368	26 not be subject to the provisions of the Illinois
369	369
370	370
371	371
372	372
373	373
374	374	SB2147 - 9 - LRB104 08441 LNS 18493 b
375	375
376	376
377	377	SB2147- 10 -LRB104 08441 LNS 18493 b SB2147 - 10 - LRB104 08441 LNS 18493 b
378	378	SB2147 - 10 - LRB104 08441 LNS 18493 b
379	379	1 Procurement Code, unless specifically required by the
380	380	2 management agreement.
381	381	3 (20) The transition of rights and obligations,
382	382	4 including any associated equipment or other assets used in
383	383	5 the operation of the Lottery, from the manager to any
384	384	6 successor manager of the lottery, including the
385	385	7 Department, following the termination of or foreclosure
386	386	8 upon the management agreement.
387	387	9 (21) Right of use of copyrights, trademarks, and
388	388	10 service marks held by the Department in the name of the
389	389	11 State. The agreement must provide that any use of them by
390	390	12 the manager shall only be for the purpose of fulfilling
391	391	13 its obligations under the management agreement during the
392	392	14 term of the agreement.
393	393	15 (22) The disclosure of any information requested by
394	394	16 the Department to enable it to comply with the reporting
395	395	17 requirements and information requests provided for under
396	396	18 subsection (p) of this Section.
397	397	19 (e) Notwithstanding any other law to the contrary, the
398	398	20 Department shall select a private manager through a
399	399	21 competitive request for qualifications process consistent with
400	400	22 Section 20-35 of the Illinois Procurement Code, which shall
401	401	23 take into account:
402	402	24 (1) the offeror's ability to market the Lottery to
403	403	25 those residents who are new, infrequent, or lapsed players
404	404	26 of the Lottery, especially those who are most likely to
405	405
406	406
407	407
408	408
409	409
410	410	SB2147 - 10 - LRB104 08441 LNS 18493 b
411	411
412	412
413	413	SB2147- 11 -LRB104 08441 LNS 18493 b SB2147 - 11 - LRB104 08441 LNS 18493 b
414	414	SB2147 - 11 - LRB104 08441 LNS 18493 b
415	415	1 make regular purchases on the Internet;
416	416	2 (2) the offeror's ability to address the State's
417	417	3 concern with the social effects of gambling on those who
418	418	4 can least afford to do so;
419	419	5 (3) the offeror's ability to provide the most
420	420	6 successful management of the Lottery for the benefit of
421	421	7 the people of the State based on current and past business
422	422	8 practices or plans of the offeror; and
423	423	9 (4) the offeror's poor or inadequate past performance
424	424	10 in servicing, equipping, operating or managing a lottery
425	425	11 on behalf of Illinois, another State or foreign government
426	426	12 and attracting persons who are not currently regular
427	427	13 players of a lottery.
428	428	14 (f) The Department may retain the services of an advisor
429	429	15 or advisors with significant experience in financial services
430	430	16 or the management, operation, and procurement of goods,
431	431	17 services, and equipment for a government-run lottery to assist
432	432	18 in the preparation of the terms of the request for
433	433	19 qualifications and selection of the private manager. Any
434	434	20 prospective advisor seeking to provide services under this
435	435	21 subsection (f) shall disclose any material business or
436	436	22 financial relationship during the past 3 years with any
437	437	23 potential offeror, or with a contractor or subcontractor
438	438	24 presently providing goods, services, or equipment to the
439	439	25 Department to support the Lottery. The Department shall
440	440	26 evaluate the material business or financial relationship of
441	441
442	442
443	443
444	444
445	445
446	446	SB2147 - 11 - LRB104 08441 LNS 18493 b
447	447
448	448
449	449	SB2147- 12 -LRB104 08441 LNS 18493 b SB2147 - 12 - LRB104 08441 LNS 18493 b
450	450	SB2147 - 12 - LRB104 08441 LNS 18493 b
451	451	1 each prospective advisor. The Department shall not select any
452	452	2 prospective advisor with a substantial business or financial
453	453	3 relationship that the Department deems to impair the
454	454	4 objectivity of the services to be provided by the prospective
455	455	5 advisor. During the course of the advisor's engagement by the
456	456	6 Department, and for a period of one year thereafter, the
457	457	7 advisor shall not enter into any business or financial
458	458	8 relationship with any offeror or any vendor identified to
459	459	9 assist an offeror in performing its obligations under the
460	460	10 management agreement. Any advisor retained by the Department
461	461	11 shall be disqualified from being an offeror. The Department
462	462	12 shall not include terms in the request for qualifications that
463	463	13 provide a material advantage whether directly or indirectly to
464	464	14 any potential offeror, or any contractor or subcontractor
465	465	15 presently providing goods, services, or equipment to the
466	466	16 Department to support the Lottery, including terms contained
467	467	17 in previous responses to requests for proposals or
468	468	18 qualifications submitted to Illinois, another State or foreign
469	469	19 government when those terms are uniquely associated with a
470	470	20 particular potential offeror, contractor, or subcontractor.
471	471	21 The request for proposals offered by the Department on
472	472	22 December 22, 2008 as "LOT08GAMESYS" and reference number
473	473	23 "22016176" is declared void.
474	474	24 (g) The Department shall select at least 2 offerors as
475	475	25 finalists to potentially serve as the private manager no later
476	476	26 than August 9, 2010. Upon making preliminary selections, the
477	477
478	478
479	479
480	480
481	481
482	482	SB2147 - 12 - LRB104 08441 LNS 18493 b
483	483
484	484
485	485	SB2147- 13 -LRB104 08441 LNS 18493 b SB2147 - 13 - LRB104 08441 LNS 18493 b
486	486	SB2147 - 13 - LRB104 08441 LNS 18493 b
487	487	1 Department shall schedule a public hearing on the finalists'
488	488	2 proposals and provide public notice of the hearing at least 7
489	489	3 calendar days before the hearing. The notice must include all
490	490	4 of the following:
491	491	5 (1) The date, time, and place of the hearing.
492	492	6 (2) The subject matter of the hearing.
493	493	7 (3) A brief description of the management agreement to
494	494	8 be awarded.
495	495	9 (4) The identity of the offerors that have been
496	496	10 selected as finalists to serve as the private manager.
497	497	11 (5) The address and telephone number of the
498	498	12 Department.
499	499	13 (h) At the public hearing, the Department shall (i)
500	500	14 provide sufficient time for each finalist to present and
501	501	15 explain its proposal to the Department and the Governor or the
502	502	16 Governor's designee, including an opportunity to respond to
503	503	17 questions posed by the Department, Governor, or designee and
504	504	18 (ii) allow the public and non-selected offerors to comment on
505	505	19 the presentations. The Governor or a designee shall attend the
506	506	20 public hearing. After the public hearing, the Department shall
507	507	21 have 14 calendar days to recommend to the Governor whether a
508	508	22 management agreement should be entered into with a particular
509	509	23 finalist. After reviewing the Department's recommendation, the
510	510	24 Governor may accept or reject the Department's recommendation,
511	511	25 and shall select a final offeror as the private manager by
512	512	26 publication of a notice in the Illinois Procurement Bulletin
513	513
514	514
515	515
516	516
517	517
518	518	SB2147 - 13 - LRB104 08441 LNS 18493 b
519	519
520	520
521	521	SB2147- 14 -LRB104 08441 LNS 18493 b SB2147 - 14 - LRB104 08441 LNS 18493 b
522	522	SB2147 - 14 - LRB104 08441 LNS 18493 b
523	523	1 on or before September 15, 2010. The Governor shall include in
524	524	2 the notice a detailed explanation and the reasons why the
525	525	3 final offeror is superior to other offerors and will provide
526	526	4 management services in a manner that best achieves the
527	527	5 objectives of this Section. The Governor shall also sign the
528	528	6 management agreement with the private manager.
529	529	7 (i) Any action to contest the private manager selected by
530	530	8 the Governor under this Section must be brought within 7
531	531	9 calendar days after the publication of the notice of the
532	532	10 designation of the private manager as provided in subsection
533	533	11 (h) of this Section.
534	534	12 (j) The Lottery shall remain, for so long as a private
535	535	13 manager manages the Lottery in accordance with provisions of
536	536	14 this Act, a Lottery conducted by the State, and the State shall
537	537	15 not be authorized to sell or transfer the Lottery to a third
538	538	16 party.
539	539	17 (k) Any tangible personal property used exclusively in
540	540	18 connection with the lottery that is owned by the Department
541	541	19 and leased to the private manager shall be owned by the
542	542	20 Department in the name of the State and shall be considered to
543	543	21 be public property devoted to an essential public and
544	544	22 governmental function.
545	545	23 (l) The Department may exercise any of its powers under
546	546	24 this Section or any other law as necessary or desirable for the
547	547	25 execution of the Department's powers under this Section.
548	548	26 (m) Neither this Section nor any management agreement
549	549
550	550
551	551
552	552
553	553
554	554	SB2147 - 14 - LRB104 08441 LNS 18493 b
555	555
556	556
557	557	SB2147- 15 -LRB104 08441 LNS 18493 b SB2147 - 15 - LRB104 08441 LNS 18493 b
558	558	SB2147 - 15 - LRB104 08441 LNS 18493 b
559	559	1 entered into under this Section prohibits the General Assembly
560	560	2 from authorizing forms of gambling that are not in direct
561	561	3 competition with the Lottery. The forms of gambling authorized
562	562	4 by Public Act 101-31 constitute authorized forms of gambling
563	563	5 that are not in direct competition with the Lottery.
564	564	6 (n) The private manager shall be subject to a complete
565	565	7 investigation in the third, seventh, and tenth years of the
566	566	8 agreement (if the agreement is for a 10-year term) by the
567	567	9 Department in cooperation with the Auditor General to
568	568	10 determine whether the private manager has complied with this
569	569	11 Section and the management agreement. The private manager
570	570	12 shall bear the cost of an investigation or reinvestigation of
571	571	13 the private manager under this subsection.
572	572	14 (o) The powers conferred by this Section are in addition
573	573	15 and supplemental to the powers conferred by any other law. If
574	574	16 any other law or rule is inconsistent with this Section,
575	575	17 including, but not limited to, provisions of the Illinois
576	576	18 Procurement Code, then this Section controls as to any
577	577	19 management agreement entered into under this Section. This
578	578	20 Section and any rules adopted under this Section contain full
579	579	21 and complete authority for a management agreement between the
580	580	22 Department and a private manager. No law, procedure,
581	581	23 proceeding, publication, notice, consent, approval, order, or
582	582	24 act by the Department or any other officer, Department,
583	583	25 agency, or instrumentality of the State or any political
584	584	26 subdivision is required for the Department to enter into a
585	585
586	586
587	587
588	588
589	589
590	590	SB2147 - 15 - LRB104 08441 LNS 18493 b
591	591
592	592
593	593	SB2147- 16 -LRB104 08441 LNS 18493 b SB2147 - 16 - LRB104 08441 LNS 18493 b
594	594	SB2147 - 16 - LRB104 08441 LNS 18493 b
595	595	1 management agreement under this Section. This Section contains
596	596	2 full and complete authority for the Department to approve any
597	597	3 contracts entered into by a private manager with a vendor
598	598	4 providing goods, services, or both goods and services to the
599	599	5 private manager under the terms of the management agreement,
600	600	6 including subcontractors of such vendors.
601	601	7 Upon receipt of a written request from the Chief
602	602	8 Procurement Officer, the Department shall provide to the Chief
603	603	9 Procurement Officer a complete and un-redacted copy of the
604	604	10 management agreement or any contract that is subject to the
605	605	11 Department's approval authority under this subsection (o). The
606	606	12 Department shall provide a copy of the agreement or contract
607	607	13 to the Chief Procurement Officer in the time specified by the
608	608	14 Chief Procurement Officer in his or her written request, but
609	609	15 no later than 5 business days after the request is received by
610	610	16 the Department. The Chief Procurement Officer must retain any
611	611	17 portions of the management agreement or of any contract
612	612	18 designated by the Department as confidential, proprietary, or
613	613	19 trade secret information in complete confidence pursuant to
614	614	20 subsection (g) of Section 7 of the Freedom of Information Act.
615	615	21 The Department shall also provide the Chief Procurement
616	616	22 Officer with reasonable advance written notice of any contract
617	617	23 that is pending Department approval.
618	618	24 Notwithstanding any other provision of this Section to the
619	619	25 contrary, the Chief Procurement Officer shall adopt
620	620	26 administrative rules, including emergency rules, to establish
621	621
622	622
623	623
624	624
625	625
626	626	SB2147 - 16 - LRB104 08441 LNS 18493 b
627	627
628	628
629	629	SB2147- 17 -LRB104 08441 LNS 18493 b SB2147 - 17 - LRB104 08441 LNS 18493 b
630	630	SB2147 - 17 - LRB104 08441 LNS 18493 b
631	631	1 a procurement process to select a successor private manager if
632	632	2 a private management agreement has been terminated. The
633	633	3 selection process shall at a minimum take into account the
634	634	4 criteria set forth in items (1) through (4) of subsection (e)
635	635	5 of this Section and may include provisions consistent with
636	636	6 subsections (f), (g), (h), and (i) of this Section. The Chief
637	637	7 Procurement Officer shall also implement and administer the
638	638	8 adopted selection process upon the termination of a private
639	639	9 management agreement. The Department, after the Chief
640	640	10 Procurement Officer certifies that the procurement process has
641	641	11 been followed in accordance with the rules adopted under this
642	642	12 subsection (o), shall select a final offeror as the private
643	643	13 manager and sign the management agreement with the private
644	644	14 manager.
645	645	15 Through June 30, 2022, except as provided in Sections
646	646	16 21.5, 21.6, 21.7, 21.8, 21.9, 21.10, 21.11, 21.12, and 21.13
647	647	17 of this Act and Section 25-70 of the Sports Wagering Act, the
648	648	18 Department shall distribute all proceeds of lottery tickets
649	649	19 and shares sold in the following priority and manner:
650	650	20 (1) The payment of prizes and retailer bonuses.
651	651	21 (2) The payment of costs incurred in the operation and
652	652	22 administration of the Lottery, including the payment of
653	653	23 sums due to the private manager under the management
654	654	24 agreement with the Department.
655	655	25 (3) On the last day of each month or as soon thereafter
656	656	26 as possible, the State Comptroller shall direct and the
657	657
658	658
659	659
660	660
661	661
662	662	SB2147 - 17 - LRB104 08441 LNS 18493 b
663	663
664	664
665	665	SB2147- 18 -LRB104 08441 LNS 18493 b SB2147 - 18 - LRB104 08441 LNS 18493 b
666	666	SB2147 - 18 - LRB104 08441 LNS 18493 b
667	667	1 State Treasurer shall transfer from the State Lottery Fund
668	668	2 to the Common School Fund an amount that is equal to the
669	669	3 proceeds transferred in the corresponding month of fiscal
670	670	4 year 2009, as adjusted for inflation, to the Common School
671	671	5 Fund.
672	672	6 (4) On or before September 30 of each fiscal year,
673	673	7 deposit any estimated remaining proceeds from the prior
674	674	8 fiscal year, subject to payments under items (1), (2), and
675	675	9 (3), into the Capital Projects Fund. Beginning in fiscal
676	676	10 year 2019, the amount deposited shall be increased or
677	677	11 decreased each year by the amount the estimated payment
678	678	12 differs from the amount determined from each year-end
679	679	13 financial audit. Only remaining net deficits from prior
680	680	14 fiscal years may reduce the requirement to deposit these
681	681	15 funds, as determined by the annual financial audit.
682	682	16 Beginning July 1, 2022, the Department shall distribute
683	683	17 all proceeds of lottery tickets and shares sold in the manner
684	684	18 and priority described in Section 9.3 of this Act, except that
685	685	19 the Department shall make the deposit into the Capital
686	686	20 Projects Fund that would have occurred under item (4) of this
687	687	21 subsection (o) on or before September 30, 2022, but for the
688	688	22 changes made to this subsection by Public Act 102-699.
689	689	23 (p) The Department shall be subject to the following
690	690	24 reporting and information request requirements:
691	691	25 (1) the Department shall submit written quarterly
692	692	26 reports to the Governor and the General Assembly on the
693	693
694	694
695	695
696	696
697	697
698	698	SB2147 - 18 - LRB104 08441 LNS 18493 b
699	699
700	700
701	701	SB2147- 19 -LRB104 08441 LNS 18493 b SB2147 - 19 - LRB104 08441 LNS 18493 b
702	702	SB2147 - 19 - LRB104 08441 LNS 18493 b
703	703	1 activities and actions of the private manager selected
704	704	2 under this Section;
705	705	3 (2) upon request of the Chief Procurement Officer, the
706	706	4 Department shall promptly produce information related to
707	707	5 the procurement activities of the Department and the
708	708	6 private manager requested by the Chief Procurement
709	709	7 Officer; the Chief Procurement Officer must retain
710	710	8 confidential, proprietary, or trade secret information
711	711	9 designated by the Department in complete confidence
712	712	10 pursuant to subsection (g) of Section 7 of the Freedom of
713	713	11 Information Act; and
714	714	12 (3) at least 30 days prior to the beginning of the
715	715	13 Department's fiscal year, the Department shall prepare an
716	716	14 annual written report on the activities of the private
717	717	15 manager selected under this Section and deliver that
718	718	16 report to the Governor and General Assembly.
719	719	17 (Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
720	720	18 101-561, eff. 8-23-19; 102-558, eff. 8-20-21; 102-699, eff.
721	721	19 4-19-22; 102-1115, eff. 1-9-23.)
722	722	20 (20 ILCS 1605/10.1) (from Ch. 120, par. 1160.1)
723	723	21 Sec. 10.1. The following are ineligible for any license
724	724	22 under this Act:
725	725	23 (a) any person who has been convicted of a felony;
726	726	24 (b) any person who is or has been a professional
727	727	25 gambler or gambling promoter;
728	728
729	729
730	730
731	731
732	732
733	733	SB2147 - 19 - LRB104 08441 LNS 18493 b
734	734
735	735
736	736	SB2147- 20 -LRB104 08441 LNS 18493 b SB2147 - 20 - LRB104 08441 LNS 18493 b
737	737	SB2147 - 20 - LRB104 08441 LNS 18493 b
738	738	1 (c) any person who has engaged in bookmaking or other
739	739	2 forms of illegal gambling;
740	740	3 (d) any person who is not of good character and
741	741	4 reputation in the community in which he resides;
742	742	5 (e) any person who has been found guilty of any fraud
743	743	6 or misrepresentation in any connection;
744	744	7 (f) any firm or corporation in which a person defined
745	745	8 in item (a), (b), (c), (d), or (e) has a proprietary,
746	746	9 equitable or credit interest of 5% or more.
747	747	10 (g) any organization in which a person defined in item
748	748	11 (a), (b), (c), (d), or (e) is an officer, director, or
749	749	12 managing agent, whether compensated or not; and
750	750	13 (h) any organization in which a person defined in item
751	751	14 (a), (b), (c), (d), or (e) is to participate in the
752	752	15 management or sales of lottery tickets or shares.
753	753	16 However, with respect to persons defined in (a), the
754	754	17 Department may grant any such person a license under this Act
755	755	18 when:
756	756	19 1) at least 10 years have elapsed since the date when
757	757	20 the sentence for the most recent such conviction was
758	758	21 satisfactorily completed;
759	759	22 2) the applicant has no history of criminal activity
760	760	23 subsequent to such conviction;
761	761	24 3) the applicant has complied with all conditions of
762	762	25 probation, conditional discharge, supervision, parole or
763	763	26 mandatory supervised release; and
764	764
765	765
766	766
767	767
768	768
769	769	SB2147 - 20 - LRB104 08441 LNS 18493 b
770	770
771	771
772	772	SB2147- 21 -LRB104 08441 LNS 18493 b SB2147 - 21 - LRB104 08441 LNS 18493 b
773	773	SB2147 - 21 - LRB104 08441 LNS 18493 b
774	774	1 4) the applicant presents at least 3 letters of
775	775	2 recommendation from responsible citizens in his community
776	776	3 who personally can attest that the character and attitude
777	777	4 of the applicant indicate that he is unlikely to commit
778	778	5 another crime.
779	779	6 The Department may revoke, without notice or a hearing,
780	780	7 the license of any agent who violates this Act or any rule or
781	781	8 regulation promulgated pursuant to this Act. However, if the
782	782	9 Department does revoke a license without notice and an
783	783	10 opportunity for a hearing, the Department shall, by
784	784	11 appropriate notice, afford the person whose license has been
785	785	12 revoked an opportunity for a hearing within 30 days after the
786	786	13 revocation order has been issued. As a result of any such
787	787	14 hearing, the Department may confirm its action in revoking the
788	788	15 license, or it may order the restoration of such license.
789	789	16 (Source: P.A. 97-464, eff. 10-15-11.)
790	790	17 (20 ILCS 1605/10.6) (from Ch. 120, par. 1160.6)
791	791	18 Sec. 10.6. The Department shall make an effort to more
792	792	19 directly inform players of the odds of winning prizes by
793	793	20 publishing the information for all games on the Department's
794	794	21 public website. This effort shall include, at a minimum, that
795	795	22 the Department require all ticket agents to display a placard
796	796	23 stating the odds of winning for each game offered by that
797	797	24 agent.
798	798	25 (Source: P.A. 97-464, eff. 10-15-11.)
799	799
800	800
801	801
802	802
803	803
804	804	SB2147 - 21 - LRB104 08441 LNS 18493 b
805	805
806	806
807	807	SB2147- 22 -LRB104 08441 LNS 18493 b SB2147 - 22 - LRB104 08441 LNS 18493 b
808	808	SB2147 - 22 - LRB104 08441 LNS 18493 b
809	809	1 (20 ILCS 1605/19) (from Ch. 120, par. 1169)
810	810	2 Sec. 19. The Department shall establish an appropriate
811	811	3 period for the claiming of prizes for each lottery game
812	812	4 offered. Each claim period shall be stated in game rules and
813	813	5 written play instructions issued by the Director in accordance
814	814	6 with Section 7.1 of this Act. Written play instructions shall
815	815	7 be made available on the Department's public website or by the
816	816	8 Department by request to all players through sales agents
817	817	9 licensed to sell game tickets or shares. Prizes for lottery
818	818	10 games which involve the purchase of a physical lottery ticket
819	819	11 may be claimed only by presentation of a valid winning lottery
820	820	12 ticket that matches validation records on file with the
821	821	13 Lottery; no claim may be honored which is based on the
822	822	14 assertion that the ticket was lost or stolen. No lottery
823	823	15 ticket which has been altered, mutilated, or fails to pass
824	824	16 validation tests shall be deemed to be a winning ticket.
825	825	17 If no claim is made for the money within the established
826	826	18 claim period, the prize may be included in the prize pool of
827	827	19 such special drawing or drawings as the Department may, from
828	828	20 time to time, designate. Unclaimed multi-state game prize
829	829	21 money may be included in the multi-state prize pool for such
830	830	22 special drawing or drawings as the multi-state game directors
831	831	23 may, from time to time, designate. Any bonuses offered by the
832	832	24 Department to sales agents who sell winning tickets or shares
833	833	25 shall be payable to such agents regardless of whether or not
834	834
835	835
836	836
837	837
838	838
839	839	SB2147 - 22 - LRB104 08441 LNS 18493 b
840	840
841	841
842	842	SB2147- 23 -LRB104 08441 LNS 18493 b SB2147 - 23 - LRB104 08441 LNS 18493 b
843	843	SB2147 - 23 - LRB104 08441 LNS 18493 b
844	844	1 the prize money on the ticket or share is claimed, provided
845	845	2 that the agent can be identified as the vendor of the winning
846	846	3 ticket or share, and that the winning ticket or share was sold
847	847	4 on or after January 1, 1984. All unclaimed prize money not
848	848	5 included in the prize pool of a special drawing shall be
849	849	6 transferred to the Common School Fund.
850	850	7 (Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
851	851	8 (20 ILCS 1605/20) (from Ch. 120, par. 1170)
852	852	9 Sec. 20. State Lottery Fund.
853	853	10 (a) There is created in the State Treasury a special fund
854	854	11 to be known as the State Lottery Fund. Such fund shall consist
855	855	12 of all revenues received from (1) the sale of lottery tickets
856	856	13 or shares, (net of commissions, fees representing those
857	857	14 expenses that are directly proportionate to the sale of
858	858	15 tickets or shares at the agent location, and prizes of less
859	859	16 than $600 or less which have been validly paid at the agent
860	860	17 level), (2) application fees, and (3) all other sources
861	861	18 including moneys credited or transferred thereto from any
862	862	19 other fund or source pursuant to law. Interest earnings of the
863	863	20 State Lottery Fund shall be credited to the Common School
864	864	21 Fund.
865	865	22 (a-5) The receipt and distribution of moneys under Section
866	866	23 21.4 of this Act shall be in accordance with Section 21.4.
867	867	24 (b) The receipt and distribution of moneys under Section
868	868	25 21.5 of this Law shall be in accordance with Section 21.5.
869	869
870	870
871	871
872	872
873	873
874	874	SB2147 - 23 - LRB104 08441 LNS 18493 b
875	875
876	876
877	877	SB2147- 24 -LRB104 08441 LNS 18493 b SB2147 - 24 - LRB104 08441 LNS 18493 b
878	878	SB2147 - 24 - LRB104 08441 LNS 18493 b
879	879	1 (c) The receipt and distribution of moneys under Section
880	880	2 21.6 of this Law shall be in accordance with Section 21.6.
881	881	3 (d) The receipt and distribution of moneys under Section
882	882	4 21.7 of this Law shall be in accordance with Section 21.7.
883	883	5 (e) The receipt and distribution of moneys under Section
884	884	6 21.8 of this Law shall be in accordance with Section 21.8.
885	885	7 (f) The receipt and distribution of moneys under Section
886	886	8 21.9 of this Law shall be in accordance with Section 21.9.
887	887	9 (g) The receipt and distribution of moneys under Section
888	888	10 21.10 of this Law shall be in accordance with Section 21.10.
889	889	11 (h) The receipt and distribution of moneys under Section
890	890	12 21.11 of this Law shall be in accordance with Section 21.11.
891	891	13 (i) (Blank).
892	892	14 (j) The receipt and distribution of moneys under Section
893	893	15 21.13 of this Law shall be in accordance with Section 21.13.
894	894	16 (k) The receipt and distribution of moneys under Section
895	895	17 25-70 of the Sports Wagering Act shall be in accordance with
896	896	18 Section 25-70 of the Sports Wagering Act.
897	897	19 (l) The receipt and distribution of moneys under Section
898	898	20 21.15 of this Law shall be in accordance with Section 21.15.
899	899	21 (m) The receipt and distribution of moneys under Section
900	900	22 21.16 of this Law shall be in accordance with Section 21.16.
901	901	23 (Source: P.A. 102-16, eff. 6-17-21; 103-381, eff. 7-28-23.)
902	902	24 (20 ILCS 1605/20.1) (from Ch. 120, par. 1170.1)
903	903	25 Sec. 20.1. Department account.
904	904
905	905
906	906
907	907
908	908
909	909	SB2147 - 24 - LRB104 08441 LNS 18493 b
910	910
911	911
912	912	SB2147- 25 -LRB104 08441 LNS 18493 b SB2147 - 25 - LRB104 08441 LNS 18493 b
913	913	SB2147 - 25 - LRB104 08441 LNS 18493 b
914	914	1 (a) The Department is authorized to pay validated prizes
915	915	2 up to $25,000 from funds held by the Department in an account
916	916	3 separate and apart from all public moneys of the State. Moneys
917	917	4 in this account shall be administered by the Director
918	918	5 exclusively for the purposes of issuing payments to prize
919	919	6 winners authorized by this Section. Moneys in this account
920	920	7 shall be deposited by the Department into the Public
921	921	8 Treasurers' Investment Pool established under Section 17 of
922	922	9 the State Treasurer Act. The Department shall submit vouchers
923	923	10 from time to time as needed for reimbursement of this account
924	924	11 from moneys appropriated for prizes from the State Lottery
925	925	12 Fund. Investment income earned from this account shall be
926	926	13 deposited monthly by the Department into the Common School
927	927	14 Fund. The Department shall file quarterly fiscal reports
928	928	15 specifying the activity of this account as required under
929	929	16 Section 16 of the State Comptroller Act, and shall file
930	930	17 quarterly with the General Assembly, the Auditor General, the
931	931	18 Comptroller, and the State Treasurer a report indicating the
932	932	19 costs associated with this activity.
933	933	20 (b) The Department is authorized to enter into an
934	934	21 interagency agreement with the Office of the Comptroller or
935	935	22 any other State agency to establish responsibilities, duties,
936	936	23 and procedures for complying with the Comptroller's Offset
937	937	24 System under Section 10.05 of the State Comptroller Act. All
938	938	25 federal and State tax reporting and withholding requirements
939	939	26 relating to prize winners under this Section shall be the
940	940
941	941
942	942
943	943
944	944
945	945	SB2147 - 25 - LRB104 08441 LNS 18493 b
946	946
947	947
948	948	SB2147- 26 -LRB104 08441 LNS 18493 b SB2147 - 26 - LRB104 08441 LNS 18493 b
949	949	SB2147 - 26 - LRB104 08441 LNS 18493 b
950	950	1 responsibility of the Department. Moneys from this account may
951	951	2 not be used to pay amounts to deferred prize winners. Moneys
952	952	3 may not be transferred from the State Lottery Fund to this
953	953	4 account for payment of prizes under this Section until
954	954	5 procedures are implemented to comply with the Comptroller's
955	955	6 Offset System and sufficient internal controls are in place to
956	956	7 validate prizes.
957	957	8 (Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
958	958	9 (20 ILCS 1605/24) (from Ch. 120, par. 1174)
959	959	10 Sec. 24. The State Comptroller shall conduct a preaudit of
960	960	11 all accounts and transactions of the Department in connection
961	961	12 with the operation of the State Lottery under the State
962	962	13 Comptroller Act, excluding payments issued by the Department
963	963	14 for prizes of $25,000 or less.
964	964	15 The Auditor General or a certified public accountant firm
965	965	16 appointed by him shall conduct an annual post-audit of all
966	966	17 accounts and transactions of the Department in connection with
967	967	18 the operation of the State Lottery and other special post
968	968	19 audits as the Auditor General, the Legislative Audit
969	969	20 Commission, or the General Assembly deems necessary. The
970	970	21 annual post-audits shall include payments made by lottery
971	971	22 sales agents of prizes of less than $600 or less authorized
972	972	23 under Section 20, and payments made by the Department of
973	973	24 prizes up to $25,000 authorized under Section 20.1. The
974	974	25 Auditor General or his agent conducting an audit under this
975	975
976	976
977	977
978	978
979	979
980	980	SB2147 - 26 - LRB104 08441 LNS 18493 b
981	981
982	982
983	983	SB2147- 27 -LRB104 08441 LNS 18493 b SB2147 - 27 - LRB104 08441 LNS 18493 b
984	984	SB2147 - 27 - LRB104 08441 LNS 18493 b
985	985	1 Act shall have access and authority to examine any and all
986	986	2 records of the Department or the Board, its distributing
987	987	3 agents and its licensees.
988	988	4 (Source: P.A. 94-776, eff. 5-19-06.)
989	989	5 (20 ILCS 1605/27) (from Ch. 120, par. 1177)
990	990	6 Sec. 27. (a) The Department may State Treasurer may, with
991	991	7 the consent of the Director, contract with any person or
992	992	8 corporation, including, without limitation, a bank, banking
993	993	9 house, trust company or investment banking firm, to perform
994	994	10 such financial functions, activities or services in connection
995	995	11 with operation of the lottery. The State Treasurer may, with
996	996	12 the consent of the Director, act as an agent of the Department
997	997	13 to perform the financial functions as the Director may
998	998	14 prescribe as the State Treasurer and the Director may
999	999	15 prescribe.
1000	1000	16 (b) All proceeds from investments made pursuant to
1001	1001	17 contracts executed by the Department or the State Treasurer,
1002	1002	18 with the consent of the Director, to perform financial
1003	1003	19 functions, activities or services in connection with operation
1004	1004	20 of the lottery, shall be deposited and held by the State
1005	1005	21 Treasurer as ex-officio custodian thereof, separate and apart
1006	1006	22 from all public money or funds of this State in a special trust
1007	1007	23 fund outside the State treasury. Such trust fund shall be
1008	1008	24 known as the "Deferred Lottery Prize Winners Trust Fund", and
1009	1009	25 shall be administered by the Director.
1010	1010
1011	1011
1012	1012
1013	1013
1014	1014
1015	1015	SB2147 - 27 - LRB104 08441 LNS 18493 b
1016	1016
1017	1017
1018	1018	SB2147- 28 -LRB104 08441 LNS 18493 b SB2147 - 28 - LRB104 08441 LNS 18493 b
1019	1019	SB2147 - 28 - LRB104 08441 LNS 18493 b
1020	1020	1 The Director shall, at such times and in such amounts as
1021	1021	2 shall be necessary, prepare and send to the State Comptroller
1022	1022	3 vouchers requesting payment from the Deferred Lottery Prize
1023	1023	4 Winners Trust Fund to deferred prize winners, in a manner that
1024	1024	5 will insure the timely payment of such amounts owed.
1025	1025	6 This Act shall constitute an irrevocable appropriation of
1026	1026	7 all amounts necessary for that purpose, and the irrevocable
1027	1027	8 and continuing authority for and direction to the Director and
1028	1028	9 the State Treasurer to make the necessary payments out of such
1029	1029	10 trust fund for that purpose.
1030	1030	11 (c) Moneys invested pursuant to subsection (a) of this
1031	1031	12 Section may be invested only in bonds, notes, certificates of
1032	1032	13 indebtedness, treasury bills, or other securities constituting
1033	1033	14 direct obligations of the United States of America and all
1034	1034	15 securities or obligations the prompt payment of principal and
1035	1035	16 interest of which is guaranteed by a pledge of the full faith
1036	1036	17 and credit of the United States of America. Interest earnings
1037	1037	18 on moneys in the Deferred Lottery Prize Winners Trust Fund
1038	1038	19 shall remain in such fund and be used to pay the winners of
1039	1039	20 lottery prizes deferred as to payment until such obligations
1040	1040	21 are discharged. Proceeds from bonds purchased and interest
1041	1041	22 accumulated as a result of a grand prize multi-state game
1042	1042	23 ticket that goes unclaimed will be transferred after the
1043	1043	24 termination of the relevant claim period directly from the
1044	1044	25 lottery's Deferred Lottery Prize Winners Trust Fund to each
1045	1045	26 respective multi-state partner state according to its
1046	1046
1047	1047
1048	1048
1049	1049
1050	1050
1051	1051	SB2147 - 28 - LRB104 08441 LNS 18493 b
1052	1052
1053	1053
1054	1054	SB2147- 29 -LRB104 08441 LNS 18493 b SB2147 - 29 - LRB104 08441 LNS 18493 b
1055	1055	SB2147 - 29 - LRB104 08441 LNS 18493 b
1056	1056
1057	1057
1058	1058
1059	1059
1060	1060
1061	1061	SB2147 - 29 - LRB104 08441 LNS 18493 b