Rep. Margaret Croke

Filed: 4/16/2024

 

 


 

 


 
10300HB5229ham001LRB103 38855 AWJ 72429 a

1
AMENDMENT TO HOUSE BILL 5229

2    AMENDMENT NO. ______. Amend House Bill 5229 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Lottery Law is amended by
5changing Sections 7.1, 9.1, 10.1, 10.6, 19, 20, 20.1, 24, and
627 as follows:
 
7    (20 ILCS 1605/7.1)  (from Ch. 120, par. 1157.1)
8    Sec. 7.1. The Department shall promulgate such rules and
9regulations governing the establishment and operation of a
10State lottery as it deems necessary to carry out the purposes
11of this Act. Such rules and regulations shall be subject to the
12provisions of The Illinois Administrative Procedure Act. The
13Department shall issue written game rules, play instructions,
14directives, operations manuals, brochures, or any other
15publications necessary to conduct specific games, as
16authorized by rule by the Department. Any written game rules,

 

 

10300HB5229ham001- 2 -LRB103 38855 AWJ 72429 a

1play instructions, directives, operations manuals, brochures,
2or other game publications issued by the Department that
3relate to a specific lottery game shall be maintained as a
4public record in the Department's principal office, and made
5available for public inspection and copying but shall be
6exempt from the rulemaking procedures of the Illinois
7Administrative Procedure Act. However, when such written
8materials contain any policy of general applicability, the
9Department shall formulate and adopt such policy as a rule in
10accordance with the provisions of the Illinois Administrative
11Procedure Act. In addition, the Department shall publish each
12January in the Illinois Register a list of all game-specific
13rules, play instructions, directives, operations manuals,
14brochures, or other game-specific publications issued by the
15Department during the previous year and instructions
16concerning how the public may obtain copies of these materials
17from the Department.
18(Source: P.A. 97-464, eff. 10-15-11.)
 
19    (20 ILCS 1605/9.1)
20    Sec. 9.1. Private manager and management agreement.
21    (a) As used in this Section:
22    "Offeror" means a person or group of persons that responds
23to a request for qualifications under this Section.
24    "Request for qualifications" means all materials and
25documents prepared by the Department to solicit the following

 

 

10300HB5229ham001- 3 -LRB103 38855 AWJ 72429 a

1from offerors:
2        (1) Statements of qualifications.
3        (2) Proposals to enter into a management agreement,
4    including the identity of any prospective vendor or
5    vendors that the offeror intends to initially engage to
6    assist the offeror in performing its obligations under the
7    management agreement.
8    "Final offer" means the last proposal submitted by an
9offeror in response to the request for qualifications,
10including the identity of any prospective vendor or vendors
11that the offeror intends to initially engage to assist the
12offeror in performing its obligations under the management
13agreement.
14    "Final offeror" means the offeror ultimately selected by
15the Governor to be the private manager for the Lottery under
16subsection (h) of this Section.
17    (b) (Blank). By September 15, 2010, the Governor shall
18select a private manager for the total management of the
19Lottery with integrated functions, such as lottery game
20design, supply of goods and services, and advertising and as
21specified in this Section.
22    (c) (Blank). Pursuant to the terms of this subsection, the
23Department shall endeavor to expeditiously terminate the
24existing contracts in support of the Lottery in effect on July
2513, 2009 (the effective date of Public Act 96-37) in
26connection with the selection of the private manager. As part

 

 

10300HB5229ham001- 4 -LRB103 38855 AWJ 72429 a

1of its obligation to terminate these contracts and select the
2private manager, the Department shall establish a mutually
3agreeable timetable to transfer the functions of existing
4contractors to the private manager so that existing Lottery
5operations are not materially diminished or impaired during
6the transition. To that end, the Department shall do the
7following:
8        (1) where such contracts contain a provision
9    authorizing termination upon notice, the Department shall
10    provide notice of termination to occur upon the mutually
11    agreed timetable for transfer of functions;
12        (2) upon the expiration of any initial term or renewal
13    term of the current Lottery contracts, the Department
14    shall not renew such contract for a term extending beyond
15    the mutually agreed timetable for transfer of functions;
16    or
17        (3) in the event any current contract provides for
18    termination of that contract upon the implementation of a
19    contract with the private manager, the Department shall
20    perform all necessary actions to terminate the contract on
21    the date that coincides with the mutually agreed timetable
22    for transfer of functions.
23    If the contracts to support the current operation of the
24Lottery in effect on July 13, 2009 (the effective date of
25Public Act 96-34) are not subject to termination as provided
26for in this subsection (c), then the Department may include a

 

 

10300HB5229ham001- 5 -LRB103 38855 AWJ 72429 a

1provision in the contract with the private manager specifying
2a mutually agreeable methodology for incorporation.
3    (c-5) The Department shall include provisions in the
4management agreement whereby the private manager shall, for a
5fee, and pursuant to a contract negotiated with the Department
6(the "Employee Use Contract"), utilize the services of current
7Department employees to assist in the administration and
8operation of the Lottery. The Department shall be the employer
9of all such bargaining unit employees assigned to perform such
10work for the private manager, and such employees shall be
11State employees, as defined by the Personnel Code. Department
12employees shall operate under the same employment policies,
13rules, regulations, and procedures, as other employees of the
14Department. In addition, neither historical representation
15rights under the Illinois Public Labor Relations Act, nor
16existing collective bargaining agreements, shall be disturbed
17by the management agreement with the private manager for the
18management of the Lottery.
19    (d) The management agreement with the private manager
20shall include all of the following:
21        (1) A term not to exceed 10 years, including any
22    renewals.
23        (2) A provision specifying that the Department:
24            (A) shall exercise actual control over all
25        significant business decisions;
26            (A-5) has the authority to direct or countermand

 

 

10300HB5229ham001- 6 -LRB103 38855 AWJ 72429 a

1        operating decisions by the private manager at any
2        time;
3            (B) has ready access at any time to information
4        regarding Lottery operations;
5            (C) has the right to demand and receive
6        information from the private manager concerning any
7        aspect of the Lottery operations at any time; and
8            (D) retains ownership of all trade names,
9        trademarks, and intellectual property associated with
10        the Lottery.
11        (3) A provision imposing an affirmative duty on the
12    private manager to provide the Department with material
13    information and with any information the private manager
14    reasonably believes the Department would want to know to
15    enable the Department to conduct the Lottery.
16        (4) A provision requiring the private manager to
17    provide the Department with advance notice of any
18    operating decision that bears significantly on the public
19    interest, including, but not limited to, decisions on the
20    kinds of games to be offered to the public and decisions
21    affecting the relative risk and reward of the games being
22    offered, so the Department has a reasonable opportunity to
23    evaluate and countermand that decision.
24        (5) A provision providing for compensation of the
25    private manager that may consist of, among other things, a
26    fee for services and a performance based bonus as

 

 

10300HB5229ham001- 7 -LRB103 38855 AWJ 72429 a

1    consideration for managing the Lottery, including terms
2    that may provide the private manager with an increase in
3    compensation if Lottery revenues grow by a specified
4    percentage in a given year.
5        (6) (Blank).
6        (7) A provision requiring the deposit of all Lottery
7    proceeds to be deposited into the State Lottery Fund
8    except as otherwise provided in Section 20 of this Act.
9        (8) A provision requiring the private manager to
10    locate its principal office within the State.
11        (8-5) A provision encouraging that, pursuant to
12    Section 4 of the Business Enterprise for Minorities,
13    Women, and Persons with Disabilities Act, at least 20% of
14    the cost of contracts entered into for goods and services
15    by the private manager in connection with its management
16    of the Lottery, other than contracts with sales agents or
17    technical advisors, be awarded to businesses that are a
18    minority-owned business, a women-owned business, or a
19    business owned by a person with disability, as those terms
20    are defined in the Business Enterprise for Minorities,
21    Women, and Persons with Disabilities Act.
22        (9) A requirement that so long as the private manager
23    complies with all the conditions of the agreement under
24    the oversight of the Department, the private manager shall
25    have the following duties and obligations with respect to
26    the management of the Lottery:

 

 

10300HB5229ham001- 8 -LRB103 38855 AWJ 72429 a

1            (A) The right to use equipment and other assets
2        used in the operation of the Lottery.
3            (B) The rights and obligations under contracts
4        with retailers and vendors.
5            (C) The implementation of a comprehensive security
6        program by the private manager.
7            (D) The implementation of a comprehensive system
8        of internal audits.
9            (E) The implementation of a program by the private
10        manager to curb compulsive gambling by persons playing
11        the Lottery.
12            (F) A system for determining (i) the type of
13        Lottery games, (ii) the method of selecting winning
14        tickets, (iii) the manner of payment of prizes to
15        holders of winning tickets, (iv) the frequency of
16        drawings of winning tickets, (v) the method to be used
17        in selling tickets, (vi) a system for verifying the
18        validity of tickets claimed to be winning tickets,
19        (vii) the basis upon which retailer commissions are
20        established by the manager, and (viii) minimum
21        payouts.
22        (10) A requirement that advertising and promotion must
23    be consistent with Section 7.8a of this Act.
24        (11) A requirement that the private manager market the
25    Lottery to those residents who are new, infrequent, or
26    lapsed players of the Lottery, especially those who are

 

 

10300HB5229ham001- 9 -LRB103 38855 AWJ 72429 a

1    most likely to make regular purchases on the Internet as
2    permitted by law.
3        (12) A code of ethics for the private manager's
4    officers and employees.
5        (13) A requirement that the Department monitor and
6    oversee the private manager's practices and take action
7    that the Department considers appropriate to ensure that
8    the private manager is in compliance with the terms of the
9    management agreement, while allowing the manager, unless
10    specifically prohibited by law or the management
11    agreement, to negotiate and sign its own contracts with
12    vendors.
13        (14) A provision requiring the private manager to
14    periodically file, at least on an annual basis,
15    appropriate financial statements in a form and manner
16    acceptable to the Department.
17        (15) Cash reserves requirements.
18        (16) Procedural requirements for obtaining the prior
19    approval of the Department when a management agreement or
20    an interest in a management agreement is sold, assigned,
21    transferred, or pledged as collateral to secure financing.
22        (17) Grounds for the termination of the management
23    agreement by the Department or the private manager.
24        (18) Procedures for amendment of the agreement.
25        (19) A provision requiring the private manager to
26    engage in an open and competitive bidding process for any

 

 

10300HB5229ham001- 10 -LRB103 38855 AWJ 72429 a

1    procurement having a cost in excess of the small purchase
2    limits under Section 20-20 of the Illinois Procurement
3    Code $50,000 that is not a part of the private manager's
4    final offer. The process shall favor the selection of a
5    vendor deemed to have submitted a proposal that provides
6    the Lottery with the best overall value. The process shall
7    not be subject to the provisions of the Illinois
8    Procurement Code, unless specifically required by the
9    management agreement.
10        (20) The transition of rights and obligations,
11    including any associated equipment or other assets used in
12    the operation of the Lottery, from the manager to any
13    successor manager of the lottery, including the
14    Department, following the termination of or foreclosure
15    upon the management agreement.
16        (21) Right of use of copyrights, trademarks, and
17    service marks held by the Department in the name of the
18    State. The agreement must provide that any use of them by
19    the manager shall only be for the purpose of fulfilling
20    its obligations under the management agreement during the
21    term of the agreement.
22        (22) The disclosure of any information requested by
23    the Department to enable it to comply with the reporting
24    requirements and information requests provided for under
25    subsection (p) of this Section.
26    (e) Notwithstanding any other law to the contrary, the

 

 

10300HB5229ham001- 11 -LRB103 38855 AWJ 72429 a

1Department shall select a private manager through a
2competitive request for qualifications process consistent with
3Section 20-35 of the Illinois Procurement Code, which shall
4take into account:
5        (1) the offeror's ability to market the Lottery to
6    those residents who are new, infrequent, or lapsed players
7    of the Lottery, especially those who are most likely to
8    make regular purchases on the Internet;
9        (2) the offeror's ability to address the State's
10    concern with the social effects of gambling on those who
11    can least afford to do so;
12        (3) the offeror's ability to provide the most
13    successful management of the Lottery for the benefit of
14    the people of the State based on current and past business
15    practices or plans of the offeror; and
16        (4) the offeror's poor or inadequate past performance
17    in servicing, equipping, operating or managing a lottery
18    on behalf of Illinois, another State or foreign government
19    and attracting persons who are not currently regular
20    players of a lottery.
21    (f) The Department may retain the services of an advisor
22or advisors with significant experience in financial services
23or the management, operation, and procurement of goods,
24services, and equipment for a government-run lottery to assist
25in the preparation of the terms of the request for
26qualifications and selection of the private manager. Any

 

 

10300HB5229ham001- 12 -LRB103 38855 AWJ 72429 a

1prospective advisor seeking to provide services under this
2subsection (f) shall disclose any material business or
3financial relationship during the past 3 years with any
4potential offeror, or with a contractor or subcontractor
5presently providing goods, services, or equipment to the
6Department to support the Lottery. The Department shall
7evaluate the material business or financial relationship of
8each prospective advisor. The Department shall not select any
9prospective advisor with a substantial business or financial
10relationship that the Department deems to impair the
11objectivity of the services to be provided by the prospective
12advisor. During the course of the advisor's engagement by the
13Department, and for a period of one year thereafter, the
14advisor shall not enter into any business or financial
15relationship with any offeror or any vendor identified to
16assist an offeror in performing its obligations under the
17management agreement. Any advisor retained by the Department
18shall be disqualified from being an offeror. The Department
19shall not include terms in the request for qualifications that
20provide a material advantage whether directly or indirectly to
21any potential offeror, or any contractor or subcontractor
22presently providing goods, services, or equipment to the
23Department to support the Lottery, including terms contained
24in previous responses to requests for proposals or
25qualifications submitted to Illinois, another State or foreign
26government when those terms are uniquely associated with a

 

 

10300HB5229ham001- 13 -LRB103 38855 AWJ 72429 a

1particular potential offeror, contractor, or subcontractor.
2The request for proposals offered by the Department on
3December 22, 2008 as "LOT08GAMESYS" and reference number
4"22016176" is declared void.
5    (g) The Department shall select at least 2 offerors as
6finalists to potentially serve as the private manager no later
7than August 9, 2010. Upon making preliminary selections, the
8Department shall schedule a public hearing on the finalists'
9proposals and provide public notice of the hearing at least 7
10calendar days before the hearing. The notice must include all
11of the following:
12        (1) The date, time, and place of the hearing.
13        (2) The subject matter of the hearing.
14        (3) A brief description of the management agreement to
15    be awarded.
16        (4) The identity of the offerors that have been
17    selected as finalists to serve as the private manager.
18        (5) The address and telephone number of the
19    Department.
20    (h) At the public hearing, the Department shall (i)
21provide sufficient time for each finalist to present and
22explain its proposal to the Department and the Governor or the
23Governor's designee, including an opportunity to respond to
24questions posed by the Department, Governor, or designee and
25(ii) allow the public and non-selected offerors to comment on
26the presentations. The Governor or a designee shall attend the

 

 

10300HB5229ham001- 14 -LRB103 38855 AWJ 72429 a

1public hearing. After the public hearing, the Department shall
2have 14 calendar days to recommend to the Governor whether a
3management agreement should be entered into with a particular
4finalist. After reviewing the Department's recommendation, the
5Governor may accept or reject the Department's recommendation,
6and shall select a final offeror as the private manager by
7publication of a notice in the Illinois Procurement Bulletin
8on or before September 15, 2010. The Governor shall include in
9the notice a detailed explanation and the reasons why the
10final offeror is superior to other offerors and will provide
11management services in a manner that best achieves the
12objectives of this Section. The Governor shall also sign the
13management agreement with the private manager.
14    (i) Any action to contest the private manager selected by
15the Governor under this Section must be brought within 7
16calendar days after the publication of the notice of the
17designation of the private manager as provided in subsection
18(h) of this Section.
19    (j) The Lottery shall remain, for so long as a private
20manager manages the Lottery in accordance with provisions of
21this Act, a Lottery conducted by the State, and the State shall
22not be authorized to sell or transfer the Lottery to a third
23party.
24    (k) Any tangible personal property used exclusively in
25connection with the lottery that is owned by the Department
26and leased to the private manager shall be owned by the

 

 

10300HB5229ham001- 15 -LRB103 38855 AWJ 72429 a

1Department in the name of the State and shall be considered to
2be public property devoted to an essential public and
3governmental function.
4    (l) The Department may exercise any of its powers under
5this Section or any other law as necessary or desirable for the
6execution of the Department's powers under this Section.
7    (m) Neither this Section nor any management agreement
8entered into under this Section prohibits the General Assembly
9from authorizing forms of gambling that are not in direct
10competition with the Lottery. The forms of gambling authorized
11by Public Act 101-31 constitute authorized forms of gambling
12that are not in direct competition with the Lottery.
13    (n) The private manager shall be subject to a complete
14investigation in the third, seventh, and tenth years of the
15agreement (if the agreement is for a 10-year term) by the
16Department in cooperation with the Auditor General to
17determine whether the private manager has complied with this
18Section and the management agreement. The private manager
19shall bear the cost of an investigation or reinvestigation of
20the private manager under this subsection.
21    (o) The powers conferred by this Section are in addition
22and supplemental to the powers conferred by any other law. If
23any other law or rule is inconsistent with this Section,
24including, but not limited to, provisions of the Illinois
25Procurement Code, then this Section controls as to any
26management agreement entered into under this Section. This

 

 

10300HB5229ham001- 16 -LRB103 38855 AWJ 72429 a

1Section and any rules adopted under this Section contain full
2and complete authority for a management agreement between the
3Department and a private manager. No law, procedure,
4proceeding, publication, notice, consent, approval, order, or
5act by the Department or any other officer, Department,
6agency, or instrumentality of the State or any political
7subdivision is required for the Department to enter into a
8management agreement under this Section. This Section contains
9full and complete authority for the Department to approve any
10contracts entered into by a private manager with a vendor
11providing goods, services, or both goods and services to the
12private manager under the terms of the management agreement,
13including subcontractors of such vendors.
14    Upon receipt of a written request from the Chief
15Procurement Officer, the Department shall provide to the Chief
16Procurement Officer a complete and un-redacted copy of the
17management agreement or any contract that is subject to the
18Department's approval authority under this subsection (o). The
19Department shall provide a copy of the agreement or contract
20to the Chief Procurement Officer in the time specified by the
21Chief Procurement Officer in his or her written request, but
22no later than 5 business days after the request is received by
23the Department. The Chief Procurement Officer must retain any
24portions of the management agreement or of any contract
25designated by the Department as confidential, proprietary, or
26trade secret information in complete confidence pursuant to

 

 

10300HB5229ham001- 17 -LRB103 38855 AWJ 72429 a

1subsection (g) of Section 7 of the Freedom of Information Act.
2The Department shall also provide the Chief Procurement
3Officer with reasonable advance written notice of any contract
4that is pending Department approval.
5    Notwithstanding any other provision of this Section to the
6contrary, the Chief Procurement Officer shall adopt
7administrative rules, including emergency rules, to establish
8a procurement process to select a successor private manager if
9a private management agreement has been terminated. The
10selection process shall at a minimum take into account the
11criteria set forth in items (1) through (4) of subsection (e)
12of this Section and may include provisions consistent with
13subsections (f), (g), (h), and (i) of this Section. The Chief
14Procurement Officer shall also implement and administer the
15adopted selection process upon the termination of a private
16management agreement. The Department, after the Chief
17Procurement Officer certifies that the procurement process has
18been followed in accordance with the rules adopted under this
19subsection (o), shall select a final offeror as the private
20manager and sign the management agreement with the private
21manager.
22    Through June 30, 2022, except as provided in Sections
2321.5, 21.6, 21.7, 21.8, 21.9, 21.10, 21.11, 21.12, and 21.13
24of this Act and Section 25-70 of the Sports Wagering Act, the
25Department shall distribute all proceeds of lottery tickets
26and shares sold in the following priority and manner:

 

 

10300HB5229ham001- 18 -LRB103 38855 AWJ 72429 a

1        (1) The payment of prizes and retailer bonuses.
2        (2) The payment of costs incurred in the operation and
3    administration of the Lottery, including the payment of
4    sums due to the private manager under the management
5    agreement with the Department.
6        (3) On the last day of each month or as soon thereafter
7    as possible, the State Comptroller shall direct and the
8    State Treasurer shall transfer from the State Lottery Fund
9    to the Common School Fund an amount that is equal to the
10    proceeds transferred in the corresponding month of fiscal
11    year 2009, as adjusted for inflation, to the Common School
12    Fund.
13        (4) On or before September 30 of each fiscal year,
14    deposit any estimated remaining proceeds from the prior
15    fiscal year, subject to payments under items (1), (2), and
16    (3), into the Capital Projects Fund. Beginning in fiscal
17    year 2019, the amount deposited shall be increased or
18    decreased each year by the amount the estimated payment
19    differs from the amount determined from each year-end
20    financial audit. Only remaining net deficits from prior
21    fiscal years may reduce the requirement to deposit these
22    funds, as determined by the annual financial audit.
23    Beginning July 1, 2022, the Department shall distribute
24all proceeds of lottery tickets and shares sold in the manner
25and priority described in Section 9.3 of this Act, except that
26the Department shall make the deposit into the Capital

 

 

10300HB5229ham001- 19 -LRB103 38855 AWJ 72429 a

1Projects Fund that would have occurred under item (4) of this
2subsection (o) on or before September 30, 2022, but for the
3changes made to this subsection by Public Act 102-699.
4    (p) The Department shall be subject to the following
5reporting and information request requirements:
6        (1) the Department shall submit written quarterly
7    reports to the Governor and the General Assembly on the
8    activities and actions of the private manager selected
9    under this Section;
10        (2) upon request of the Chief Procurement Officer, the
11    Department shall promptly produce information related to
12    the procurement activities of the Department and the
13    private manager requested by the Chief Procurement
14    Officer; the Chief Procurement Officer must retain
15    confidential, proprietary, or trade secret information
16    designated by the Department in complete confidence
17    pursuant to subsection (g) of Section 7 of the Freedom of
18    Information Act; and
19        (3) at least 30 days prior to the beginning of the
20    Department's fiscal year, the Department shall prepare an
21    annual written report on the activities of the private
22    manager selected under this Section and deliver that
23    report to the Governor and General Assembly.
24(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
25101-561, eff. 8-23-19; 102-558, eff. 8-20-21; 102-699, eff.
264-19-22; 102-1115, eff. 1-9-23.)
 

 

 

10300HB5229ham001- 20 -LRB103 38855 AWJ 72429 a

1    (20 ILCS 1605/10.1)  (from Ch. 120, par. 1160.1)
2    Sec. 10.1. The following are ineligible for any license
3under this Act:
4        (a) any person who has been convicted of a felony;
5        (b) any person who is or has been a professional
6    gambler or gambling promoter;
7        (c) any person who has engaged in bookmaking or other
8    forms of illegal gambling;
9        (d) any person who is not of good character and
10    reputation in the community in which he resides;
11        (e) any person who has been found guilty of any fraud
12    or misrepresentation in any connection;
13        (f) any firm or corporation in which a person defined
14    in item (a), (b), (c), (d), or (e) has a proprietary,
15    equitable or credit interest of 5% or more.
16        (g) any organization in which a person defined in item
17    (a), (b), (c), (d), or (e) is an officer, director, or
18    managing agent, whether compensated or not; and
19        (h) any organization in which a person defined in item
20    (a), (b), (c), (d), or (e) is to participate in the
21    management or sales of lottery tickets or shares.
22    However, with respect to persons defined in (a), the
23Department may grant any such person a license under this Act
24when:
25        1) at least 10 years have elapsed since the date when

 

 

10300HB5229ham001- 21 -LRB103 38855 AWJ 72429 a

1    the sentence for the most recent such conviction was
2    satisfactorily completed;
3        2) the applicant has no history of criminal activity
4    subsequent to such conviction;
5        3) the applicant has complied with all conditions of
6    probation, conditional discharge, supervision, parole or
7    mandatory supervised release; and
8        4) the applicant presents at least 3 letters of
9    recommendation from responsible citizens in his community
10    who personally can attest that the character and attitude
11    of the applicant indicate that he is unlikely to commit
12    another crime.
13    The Department may revoke, without notice or a hearing,
14the license of any agent who violates this Act or any rule or
15regulation promulgated pursuant to this Act. However, if the
16Department does revoke a license without notice and an
17opportunity for a hearing, the Department shall, by
18appropriate notice, afford the person whose license has been
19revoked an opportunity for a hearing within 30 days after the
20revocation order has been issued. As a result of any such
21hearing, the Department may confirm its action in revoking the
22license, or it may order the restoration of such license.
23(Source: P.A. 97-464, eff. 10-15-11.)
 
24    (20 ILCS 1605/10.6)  (from Ch. 120, par. 1160.6)
25    Sec. 10.6. The Department shall make an effort to more

 

 

10300HB5229ham001- 22 -LRB103 38855 AWJ 72429 a

1directly inform players of the odds of winning prizes by
2publishing the information for all games on the Department's
3public website. This effort shall include, at a minimum, that
4the Department require all ticket agents to display a placard
5stating the odds of winning for each game offered by that
6agent.
7(Source: P.A. 97-464, eff. 10-15-11.)
 
8    (20 ILCS 1605/19)  (from Ch. 120, par. 1169)
9    Sec. 19. The Department shall establish an appropriate
10period for the claiming of prizes for each lottery game
11offered. Each claim period shall be stated in game rules and
12written play instructions issued by the Director in accordance
13with Section 7.1 of this Act. Written play instructions shall
14be made available on the Department's public website or by the
15Department by request to all players through sales agents
16licensed to sell game tickets or shares. Prizes for lottery
17games which involve the purchase of a physical lottery ticket
18may be claimed only by presentation of a valid winning lottery
19ticket that matches validation records on file with the
20Lottery; no claim may be honored which is based on the
21assertion that the ticket was lost or stolen. No lottery
22ticket which has been altered, mutilated, or fails to pass
23validation tests shall be deemed to be a winning ticket.
24    If no claim is made for the money within the established
25claim period, the prize may be included in the prize pool of

 

 

10300HB5229ham001- 23 -LRB103 38855 AWJ 72429 a

1such special drawing or drawings as the Department may, from
2time to time, designate. Unclaimed multi-state game prize
3money may be included in the multi-state prize pool for such
4special drawing or drawings as the multi-state game directors
5may, from time to time, designate. Any bonuses offered by the
6Department to sales agents who sell winning tickets or shares
7shall be payable to such agents regardless of whether or not
8the prize money on the ticket or share is claimed, provided
9that the agent can be identified as the vendor of the winning
10ticket or share, and that the winning ticket or share was sold
11on or after January 1, 1984. All unclaimed prize money not
12included in the prize pool of a special drawing shall be
13transferred to the Common School Fund.
14(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
 
15    (20 ILCS 1605/20)  (from Ch. 120, par. 1170)
16    Sec. 20. State Lottery Fund.
17    (a) There is created in the State Treasury a special fund
18to be known as the State Lottery Fund. Such fund shall consist
19of all revenues received from (1) the sale of lottery tickets
20or shares, (net of commissions, fees representing those
21expenses that are directly proportionate to the sale of
22tickets or shares at the agent location, and prizes of less
23than $600 or less which have been validly paid at the agent
24level), (2) application fees, and (3) all other sources
25including moneys credited or transferred thereto from any

 

 

10300HB5229ham001- 24 -LRB103 38855 AWJ 72429 a

1other fund or source pursuant to law. Interest earnings of the
2State Lottery Fund shall be credited to the Common School
3Fund.
4    (a-5) The receipt and distribution of moneys under Section
521.4 of this Act shall be in accordance with Section 21.4.
6    (b) The receipt and distribution of moneys under Section
721.5 of this Law shall be in accordance with Section 21.5.
8    (c) The receipt and distribution of moneys under Section
921.6 of this Law shall be in accordance with Section 21.6.
10    (d) The receipt and distribution of moneys under Section
1121.7 of this Law shall be in accordance with Section 21.7.
12    (e) The receipt and distribution of moneys under Section
1321.8 of this Law shall be in accordance with Section 21.8.
14    (f) The receipt and distribution of moneys under Section
1521.9 of this Law shall be in accordance with Section 21.9.
16    (g) The receipt and distribution of moneys under Section
1721.10 of this Law shall be in accordance with Section 21.10.
18    (h) The receipt and distribution of moneys under Section
1921.11 of this Law shall be in accordance with Section 21.11.
20    (i) (Blank).
21    (j) The receipt and distribution of moneys under Section
2221.13 of this Law shall be in accordance with Section 21.13.
23    (k) The receipt and distribution of moneys under Section
2425-70 of the Sports Wagering Act shall be in accordance with
25Section 25-70 of the Sports Wagering Act.
26    (l) The receipt and distribution of moneys under Section

 

 

10300HB5229ham001- 25 -LRB103 38855 AWJ 72429 a

121.15 of this Law shall be in accordance with Section 21.15.
2    (m) The receipt and distribution of moneys under Section
321.16 of this Law shall be in accordance with Section 21.16.
4(Source: P.A. 102-16, eff. 6-17-21; 103-381, eff. 7-28-23.)
 
5    (20 ILCS 1605/20.1)  (from Ch. 120, par. 1170.1)
6    Sec. 20.1. Department account.
7    (a) The Department is authorized to pay validated prizes
8up to $25,000 from funds held by the Department in an account
9separate and apart from all public moneys of the State. Moneys
10in this account shall be administered by the Director
11exclusively for the purposes of issuing payments to prize
12winners authorized by this Section. Moneys in this account
13shall be deposited by the Department into the Public
14Treasurers' Investment Pool established under Section 17 of
15the State Treasurer Act. The Department shall submit vouchers
16from time to time as needed for reimbursement of this account
17from moneys appropriated for prizes from the State Lottery
18Fund. Investment income earned from this account shall be
19deposited monthly by the Department into the Common School
20Fund. The Department shall file quarterly fiscal reports
21specifying the activity of this account as required under
22Section 16 of the State Comptroller Act, and shall file
23quarterly with the General Assembly, the Auditor General, the
24Comptroller, and the State Treasurer a report indicating the
25costs associated with this activity.

 

 

10300HB5229ham001- 26 -LRB103 38855 AWJ 72429 a

1    (b) The Department is authorized to enter into an
2interagency agreement with the Office of the Comptroller or
3any other State agency to establish responsibilities, duties,
4and procedures for complying with the Comptroller's Offset
5System under Section 10.05 of the State Comptroller Act. All
6federal and State tax reporting and withholding requirements
7relating to prize winners under this Section shall be the
8responsibility of the Department. Moneys from this account may
9not be used to pay amounts to deferred prize winners. Moneys
10may not be transferred from the State Lottery Fund to this
11account for payment of prizes under this Section until
12procedures are implemented to comply with the Comptroller's
13Offset System and sufficient internal controls are in place to
14validate prizes.
15(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
 
16    (20 ILCS 1605/24)  (from Ch. 120, par. 1174)
17    Sec. 24. The State Comptroller shall conduct a preaudit of
18all accounts and transactions of the Department in connection
19with the operation of the State Lottery under the State
20Comptroller Act, excluding payments issued by the Department
21for prizes of $25,000 or less.
22    The Auditor General or a certified public accountant firm
23appointed by him shall conduct an annual post-audit of all
24accounts and transactions of the Department in connection with
25the operation of the State Lottery and other special post

 

 

10300HB5229ham001- 27 -LRB103 38855 AWJ 72429 a

1audits as the Auditor General, the Legislative Audit
2Commission, or the General Assembly deems necessary. The
3annual post-audits shall include payments made by lottery
4sales agents of prizes of less than $600 or less authorized
5under Section 20, and payments made by the Department of
6prizes up to $25,000 authorized under Section 20.1. The
7Auditor General or his agent conducting an audit under this
8Act shall have access and authority to examine any and all
9records of the Department or the Board, its distributing
10agents and its licensees.
11(Source: P.A. 94-776, eff. 5-19-06.)
 
12    (20 ILCS 1605/27)  (from Ch. 120, par. 1177)
13    Sec. 27. (a) The Department may State Treasurer may, with
14the consent of the Director, contract with any person or
15corporation, including, without limitation, a bank, banking
16house, trust company or investment banking firm, to perform
17such financial functions, activities or services in connection
18with operation of the lottery. The State Treasurer may, with
19the consent of the Director, act as an agent of the Department
20to perform the financial functions as the Director may
21prescribe as the State Treasurer and the Director may
22prescribe.
23    (b) All proceeds from investments made pursuant to
24contracts executed by the Department or the State Treasurer,
25with the consent of the Director, to perform financial

 

 

10300HB5229ham001- 28 -LRB103 38855 AWJ 72429 a

1functions, activities or services in connection with operation
2of the lottery, shall be deposited and held by the State
3Treasurer as ex-officio custodian thereof, separate and apart
4from all public money or funds of this State in a special trust
5fund outside the State treasury. Such trust fund shall be
6known as the "Deferred Lottery Prize Winners Trust Fund", and
7shall be administered by the Director.
8    The Director shall, at such times and in such amounts as
9shall be necessary, prepare and send to the State Comptroller
10vouchers requesting payment from the Deferred Lottery Prize
11Winners Trust Fund to deferred prize winners, in a manner that
12will insure the timely payment of such amounts owed.
13    This Act shall constitute an irrevocable appropriation of
14all amounts necessary for that purpose, and the irrevocable
15and continuing authority for and direction to the Director and
16the State Treasurer to make the necessary payments out of such
17trust fund for that purpose.
18    (c) Moneys invested pursuant to subsection (a) of this
19Section may be invested only in bonds, notes, certificates of
20indebtedness, treasury bills, or other securities constituting
21direct obligations of the United States of America and all
22securities or obligations the prompt payment of principal and
23interest of which is guaranteed by a pledge of the full faith
24and credit of the United States of America. Interest earnings
25on moneys in the Deferred Lottery Prize Winners Trust Fund
26shall remain in such fund and be used to pay the winners of

 

 

10300HB5229ham001- 29 -LRB103 38855 AWJ 72429 a

1lottery prizes deferred as to payment until such obligations
2are discharged. Proceeds from bonds purchased and interest
3accumulated as a result of a grand prize multi-state game
4ticket that goes unclaimed will be transferred after the
5termination of the relevant claim period directly from the
6lottery's Deferred Lottery Prize Winners Trust Fund to each
7respective multi-state partner state according to its
8contribution ratio.
9    (c-5) If a deferred lottery prize is not claimed within
10the claim period established by game rule, then the securities
11or other instruments purchased to fund the prize shall be
12liquidated and the liquidated amount shall be transferred to
13the State Lottery Fund for disposition pursuant to Section 19
14of this Act.
15    (c-10) The Director may use a portion of the moneys in the
16Deferred Lottery Prize Winners Trust Fund to purchase bonds to
17pay a lifetime prize if the prize duration exceeds the length
18of available securities. If the winner of a lifetime prize
19exceeds his or her life expectancy as determined using
20actuarial assumptions and the securities or moneys set aside
21to pay the prize have been exhausted, moneys in the State
22Lottery Fund shall be used to make payments to the winner for
23the duration of the winner's life.
24    (c-15) From time to time, the Director may request that
25the State Comptroller transfer any excess moneys in the
26Deferred Lottery Prize Winners Trust Fund to the State Lottery

 

 

10300HB5229ham001- 30 -LRB103 38855 AWJ 72429 a

1Fund.
2    (d) This amendatory Act of 1985 shall be construed
3liberally to effect the purposes of the Illinois Lottery Law.
4(Source: P.A. 97-464, eff. 10-15-11; 98-463, eff. 8-16-13;
598-499, eff. 8-16-13.)".