HB4128 95TH GENERAL ASSEMBLY

LRB095 12878 BDD 38364 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB4128

Introduced , by Rep. Angelo Saviano

SYNOPSIS AS INTRODUCED:

20 ILCS 1605/7.12 new
20 ILCS 1605/7.13 new
20 ILCS 1605/7.14 new

Amends the Illinois Lottery Law. Requires the Department of Revenue to establish and maintain an Internet lottery game program that allows an eligible person to purchase lottery tickets through the Internet through the services of a private Internet agent. Sets forth procedures for the establishment and operation of the program and for the creation of individual lottery accounts. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Lottery Law is amended by adding Sections 7.12, 7.13, 7.14, and 7.15 as follows:

(20 ILCS 1605/7.12 new)

Sec. 7.12. Internet Lottery game program.

(a) The Department shall establish and maintain an Internet lottery game program that allows an eligible person to purchase lottery tickets through the Internet through the services of a private Internet agent. The Department must adopt rules necessary for the administration of this program. The provisions of this Section and the rules adopted under this Section apply to the sale of lottery tickets under this program.

(b) The Department shall select a private Internet agent under the standards and qualifications described in Section 7.13 to operate the real-time and secure payment option system that may be used for the purposes of this program.

(c) All non-scratch-ticket Lottery games offered by the Department shall be offered to Internet players, but the Department is authorized to determine which additional lottery games may be offered through the electronic distribution channel.

(d) A person who purchases a ticket through the program shall be notified electronically of their prize winnings. A prize in an amount less than $600 must be deposited directly into the winner's bank account. The payment of a prize in an amount of $600 or more may be made only by the Director.

(e) The Department shall determine which games may be played online and shall limit the persons authorized to purchase tickets online to only eligible residents of this State in compliance with the federal Unlawful Internet Gambling Enforcement Act of 2006.

(f) The Department shall, by rule and in compliance with the federal Unlawful Internet Gambling Enforcement Act of 2006, establish a procedure to verify that a person is 18 years of age or older before, he or she may establish an online lottery account and purchase lottery tickets through the Internet program. By rule, the Department shall adopt standards to prevent the unauthorized use of online lottery accounts.

(g) The Department may, by rule, establish a limitation on monthly purchases that may be made through any individual lottery account.

(20 ILCS 1605/7.13 new)

Sec. 7.13. Operation of the Internet game program.

(a) the Department shall enter into a contract with a private Internet agent to sell lottery tickets through the Internet through the services of a private Internet agent. In addition to any other reasonable qualifications required by the Department, the private Internet agent must:

(1) demonstrate extensive experience in handling secure Internet financial transactions on a real time basis;

(2) possess the ability to maintain an Internet site in compliance with the best industry standards with respect to security and the protection of personal information;

(3) possess a demonstrable ability to create and maintain an Internet site and subsites with a high volume of use meet or exceed electronic security standards within the electronic payment or transfer industry such as a SAS 70 Type II review; and

(4) submit to the Department a history of financial accountability and comply with generally accepted accounting principles.

(b) The private Internet agent, with the cooperation and approval of the Department, must establish procedures to establish accounts and unique identification numbers for each player using the Internet and to verify the age, address, and payment method of each of those players.

(c) The private Internet agent is entitled to earn and collect a reasonable transaction fee that is paid by the player who establishes and plays through an online account, and the private Internet agent is also entitled to the winning bonus for selling a winning ticket as approved and set under the Act.

(d) The private Internet agent must deliver to the Department all moneys collected through the Internet transactions within 48 hours after their receipt. The private Internet agent must deliver to the Department records of all sales transactions from which those moneys were collected on a real time basis or as required by the Department. The private Internet agent may deduct its fees before delivering the funds to the Department.

(e) The Department must adopt any rules necessary to administer the provisions of this Section.

(20 ILCS 1605/7.14 new)

Sec. 7.14. Creation of Internet Lottery accounts.

(a) Any person who is eligible to participate in the Internet Lottery game program may create a secure individual lottery account that is accessible through the Internet or by other secure electronic means. In order to establish an individual lottery account, a person must apply to the Department.

An applicant that applies in person must present a valid Illinois driver's license with current address or an official State-issued identification card. The Department shall verify that the person is 18 years of age or older. The person must be issued an application form in person, to be approved by the Department or its approved private Internet agent, containing of the applicant's name, address, age, driver's license number, or the number of an official state approved identification card; an email address and the applicant's last 4 digits of his or her social security number as well as other information that may be required by the Department or the private Internet agent.

An applicant may also establish an individual lottery account by registering online through an approved Illinois Lottery website and filling out the electronic application form via the Internet. The application shall be approved by the Department or its approved private Internet agent, containing of the applicant's name, address, age, driver's license number, or the number of an official state approved identification card, an email address and the applicant's last 4 digits of his or her social security number. The private Internet agent shall verify over the Internet the persons name, age, address, and drivers license number through a connection with the Illinois Secretary of State Drivers License Bureau.

(b) The individual lottery account may not be activated until the person goes online and follows the activation and funding procedure to be established by the Department. Each new account holder must be issued electronically a unique individual lottery access number that will prevent others from accessing his or her individual lottery account.

(c) The Department is authorized and directed to devise a method pursuant to which a person who has activated and funded an individual lottery account is allowed to purchase lottery tickets or shares by using public or private computer terminals or other electronic devices or means.

Section 99. Effective date. This Act takes effect upon becoming law.