HB5229 EngrossedLRB103 38855 AWJ 68992 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Lottery Law is amended by changing
5Sections 7.1, 9.1, 10.1, 10.6, 19, 20, 20.1, 24, and 27 as
6follows:
 
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,
17play instructions, directives, operations manuals, brochures,
18or other game publications issued by the Department that
19relate to a specific lottery game shall be maintained as a
20public record in the Department's principal office, and made
21available for public inspection and copying but shall be
22exempt from the rulemaking procedures of the Illinois
23Administrative Procedure Act. However, when such written

 

 

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1materials contain any policy of general applicability, the
2Department shall formulate and adopt such policy as a rule in
3accordance with the provisions of the Illinois Administrative
4Procedure Act. In addition, the Department shall publish each
5January in the Illinois Register a list of all game-specific
6rules, play instructions, directives, operations manuals,
7brochures, or other game-specific publications issued by the
8Department during the previous year and instructions
9concerning how the public may obtain copies of these materials
10from the Department.
11(Source: P.A. 97-464, eff. 10-15-11.)
 
12    (20 ILCS 1605/9.1)
13    Sec. 9.1. Private manager and management agreement.
14    (a) As used in this Section:
15    "Offeror" means a person or group of persons that responds
16to a request for qualifications under this Section.
17    "Request for qualifications" means all materials and
18documents prepared by the Department to solicit the following
19from offerors:
20        (1) Statements of qualifications.
21        (2) Proposals to enter into a management agreement,
22    including the identity of any prospective vendor or
23    vendors that the offeror intends to initially engage to
24    assist the offeror in performing its obligations under the
25    management agreement.

 

 

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1    "Final offer" means the last proposal submitted by an
2offeror in response to the request for qualifications,
3including the identity of any prospective vendor or vendors
4that the offeror intends to initially engage to assist the
5offeror in performing its obligations under the management
6agreement.
7    "Final offeror" means the offeror ultimately selected by
8the Governor to be the private manager for the Lottery under
9subsection (h) of this Section.
10    (b) (Blank). By September 15, 2010, the Governor shall
11select a private manager for the total management of the
12Lottery with integrated functions, such as lottery game
13design, supply of goods and services, and advertising and as
14specified in this Section.
15    (c) (Blank). Pursuant to the terms of this subsection, the
16Department shall endeavor to expeditiously terminate the
17existing contracts in support of the Lottery in effect on July
1813, 2009 (the effective date of Public Act 96-37) in
19connection with the selection of the private manager. As part
20of its obligation to terminate these contracts and select the
21private manager, the Department shall establish a mutually
22agreeable timetable to transfer the functions of existing
23contractors to the private manager so that existing Lottery
24operations are not materially diminished or impaired during
25the transition. To that end, the Department shall do the
26following:

 

 

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1        (1) where such contracts contain a provision
2    authorizing termination upon notice, the Department shall
3    provide notice of termination to occur upon the mutually
4    agreed timetable for transfer of functions;
5        (2) upon the expiration of any initial term or renewal
6    term of the current Lottery contracts, the Department
7    shall not renew such contract for a term extending beyond
8    the mutually agreed timetable for transfer of functions;
9    or
10        (3) in the event any current contract provides for
11    termination of that contract upon the implementation of a
12    contract with the private manager, the Department shall
13    perform all necessary actions to terminate the contract on
14    the date that coincides with the mutually agreed timetable
15    for transfer of functions.
16    If the contracts to support the current operation of the
17Lottery in effect on July 13, 2009 (the effective date of
18Public Act 96-34) are not subject to termination as provided
19for in this subsection (c), then the Department may include a
20provision in the contract with the private manager specifying
21a mutually agreeable methodology for incorporation.
22    (c-5) The Department shall include provisions in the
23management agreement whereby the private manager shall, for a
24fee, and pursuant to a contract negotiated with the Department
25(the "Employee Use Contract"), utilize the services of current
26Department employees to assist in the administration and

 

 

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1operation of the Lottery. The Department shall be the employer
2of all such bargaining unit employees assigned to perform such
3work for the private manager, and such employees shall be
4State employees, as defined by the Personnel Code. Department
5employees shall operate under the same employment policies,
6rules, regulations, and procedures, as other employees of the
7Department. In addition, neither historical representation
8rights under the Illinois Public Labor Relations Act, nor
9existing collective bargaining agreements, shall be disturbed
10by the management agreement with the private manager for the
11management of the Lottery.
12    (d) The management agreement with the private manager
13shall include all of the following:
14        (1) A term not to exceed 10 years, including any
15    renewals.
16        (2) A provision specifying that the Department:
17            (A) shall exercise actual control over all
18        significant business decisions;
19            (A-5) has the authority to direct or countermand
20        operating decisions by the private manager at any
21        time;
22            (B) has ready access at any time to information
23        regarding Lottery operations;
24            (C) has the right to demand and receive
25        information from the private manager concerning any
26        aspect of the Lottery operations at any time; and

 

 

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1            (D) retains ownership of all trade names,
2        trademarks, and intellectual property associated with
3        the Lottery.
4        (3) A provision imposing an affirmative duty on the
5    private manager to provide the Department with material
6    information and with any information the private manager
7    reasonably believes the Department would want to know to
8    enable the Department to conduct the Lottery.
9        (4) A provision requiring the private manager to
10    provide the Department with advance notice of any
11    operating decision that bears significantly on the public
12    interest, including, but not limited to, decisions on the
13    kinds of games to be offered to the public and decisions
14    affecting the relative risk and reward of the games being
15    offered, so the Department has a reasonable opportunity to
16    evaluate and countermand that decision.
17        (5) A provision providing for compensation of the
18    private manager that may consist of, among other things, a
19    fee for services and a performance based bonus as
20    consideration for managing the Lottery, including terms
21    that may provide the private manager with an increase in
22    compensation if Lottery revenues grow by a specified
23    percentage in a given year.
24        (6) (Blank).
25        (7) A provision requiring the deposit of all Lottery
26    proceeds to be deposited into the State Lottery Fund

 

 

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1    except as otherwise provided in Section 20 of this Act.
2        (8) A provision requiring the private manager to
3    locate its principal office within the State.
4        (8-5) A provision encouraging that, pursuant to
5    Section 4 of the Business Enterprise for Minorities,
6    Women, and Persons with Disabilities Act, at least 20% of
7    the cost of contracts entered into for goods and services
8    by the private manager in connection with its management
9    of the Lottery, other than contracts with sales agents or
10    technical advisors, be awarded to businesses that are a
11    minority-owned business, a women-owned business, or a
12    business owned by a person with disability, as those terms
13    are defined in the Business Enterprise for Minorities,
14    Women, and Persons with Disabilities Act.
15        (9) A requirement that so long as the private manager
16    complies with all the conditions of the agreement under
17    the oversight of the Department, the private manager shall
18    have the following duties and obligations with respect to
19    the management of the Lottery:
20            (A) The right to use equipment and other assets
21        used in the operation of the Lottery.
22            (B) The rights and obligations under contracts
23        with retailers and vendors.
24            (C) The implementation of a comprehensive security
25        program by the private manager.
26            (D) The implementation of a comprehensive system

 

 

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1        of internal audits.
2            (E) The implementation of a program by the private
3        manager to curb compulsive gambling by persons playing
4        the Lottery.
5            (F) A system for determining (i) the type of
6        Lottery games, (ii) the method of selecting winning
7        tickets, (iii) the manner of payment of prizes to
8        holders of winning tickets, (iv) the frequency of
9        drawings of winning tickets, (v) the method to be used
10        in selling tickets, (vi) a system for verifying the
11        validity of tickets claimed to be winning tickets,
12        (vii) the basis upon which retailer commissions are
13        established by the manager, and (viii) minimum
14        payouts.
15        (10) A requirement that advertising and promotion must
16    be consistent with Section 7.8a of this Act.
17        (11) A requirement that the private manager market the
18    Lottery to those residents who are new, infrequent, or
19    lapsed players of the Lottery, especially those who are
20    most likely to make regular purchases on the Internet as
21    permitted by law.
22        (12) A code of ethics for the private manager's
23    officers and employees.
24        (13) A requirement that the Department monitor and
25    oversee the private manager's practices and take action
26    that the Department considers appropriate to ensure that

 

 

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1    the private manager is in compliance with the terms of the
2    management agreement, while allowing the manager, unless
3    specifically prohibited by law or the management
4    agreement, to negotiate and sign its own contracts with
5    vendors.
6        (14) A provision requiring the private manager to
7    periodically file, at least on an annual basis,
8    appropriate financial statements in a form and manner
9    acceptable to the Department.
10        (15) Cash reserves requirements.
11        (16) Procedural requirements for obtaining the prior
12    approval of the Department when a management agreement or
13    an interest in a management agreement is sold, assigned,
14    transferred, or pledged as collateral to secure financing.
15        (17) Grounds for the termination of the management
16    agreement by the Department or the private manager.
17        (18) Procedures for amendment of the agreement.
18        (19) A provision requiring the private manager to
19    engage in an open and competitive bidding process for any
20    procurement having a cost in excess of the small purchase
21    limits under Section 20-20 of the Illinois Procurement
22    Code $50,000 that is not a part of the private manager's
23    final offer. The process shall favor the selection of a
24    vendor deemed to have submitted a proposal that provides
25    the Lottery with the best overall value. The process shall
26    not be subject to the provisions of the Illinois

 

 

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1    Procurement Code, unless specifically required by the
2    management agreement.
3        (20) The transition of rights and obligations,
4    including any associated equipment or other assets used in
5    the operation of the Lottery, from the manager to any
6    successor manager of the lottery, including the
7    Department, following the termination of or foreclosure
8    upon the management agreement.
9        (21) Right of use of copyrights, trademarks, and
10    service marks held by the Department in the name of the
11    State. The agreement must provide that any use of them by
12    the manager shall only be for the purpose of fulfilling
13    its obligations under the management agreement during the
14    term of the agreement.
15        (22) The disclosure of any information requested by
16    the Department to enable it to comply with the reporting
17    requirements and information requests provided for under
18    subsection (p) of this Section.
19    (e) Notwithstanding any other law to the contrary, the
20Department shall select a private manager through a
21competitive request for qualifications process consistent with
22Section 20-35 of the Illinois Procurement Code, which shall
23take into account:
24        (1) the offeror's ability to market the Lottery to
25    those residents who are new, infrequent, or lapsed players
26    of the Lottery, especially those who are most likely to

 

 

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1    make regular purchases on the Internet;
2        (2) the offeror's ability to address the State's
3    concern with the social effects of gambling on those who
4    can least afford to do so;
5        (3) the offeror's ability to provide the most
6    successful management of the Lottery for the benefit of
7    the people of the State based on current and past business
8    practices or plans of the offeror; and
9        (4) the offeror's poor or inadequate past performance
10    in servicing, equipping, operating or managing a lottery
11    on behalf of Illinois, another State or foreign government
12    and attracting persons who are not currently regular
13    players of a lottery.
14    (f) The Department may retain the services of an advisor
15or advisors with significant experience in financial services
16or the management, operation, and procurement of goods,
17services, and equipment for a government-run lottery to assist
18in the preparation of the terms of the request for
19qualifications and selection of the private manager. Any
20prospective advisor seeking to provide services under this
21subsection (f) shall disclose any material business or
22financial relationship during the past 3 years with any
23potential offeror, or with a contractor or subcontractor
24presently providing goods, services, or equipment to the
25Department to support the Lottery. The Department shall
26evaluate the material business or financial relationship of

 

 

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1each prospective advisor. The Department shall not select any
2prospective advisor with a substantial business or financial
3relationship that the Department deems to impair the
4objectivity of the services to be provided by the prospective
5advisor. During the course of the advisor's engagement by the
6Department, and for a period of one year thereafter, the
7advisor shall not enter into any business or financial
8relationship with any offeror or any vendor identified to
9assist an offeror in performing its obligations under the
10management agreement. Any advisor retained by the Department
11shall be disqualified from being an offeror. The Department
12shall not include terms in the request for qualifications that
13provide a material advantage whether directly or indirectly to
14any potential offeror, or any contractor or subcontractor
15presently providing goods, services, or equipment to the
16Department to support the Lottery, including terms contained
17in previous responses to requests for proposals or
18qualifications submitted to Illinois, another State or foreign
19government when those terms are uniquely associated with a
20particular potential offeror, contractor, or subcontractor.
21The request for proposals offered by the Department on
22December 22, 2008 as "LOT08GAMESYS" and reference number
23"22016176" is declared void.
24    (g) The Department shall select at least 2 offerors as
25finalists to potentially serve as the private manager no later
26than August 9, 2010. Upon making preliminary selections, the

 

 

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1Department shall schedule a public hearing on the finalists'
2proposals and provide public notice of the hearing at least 7
3calendar days before the hearing. The notice must include all
4of the following:
5        (1) The date, time, and place of the hearing.
6        (2) The subject matter of the hearing.
7        (3) A brief description of the management agreement to
8    be awarded.
9        (4) The identity of the offerors that have been
10    selected as finalists to serve as the private manager.
11        (5) The address and telephone number of the
12    Department.
13    (h) At the public hearing, the Department shall (i)
14provide sufficient time for each finalist to present and
15explain its proposal to the Department and the Governor or the
16Governor's designee, including an opportunity to respond to
17questions posed by the Department, Governor, or designee and
18(ii) allow the public and non-selected offerors to comment on
19the presentations. The Governor or a designee shall attend the
20public hearing. After the public hearing, the Department shall
21have 14 calendar days to recommend to the Governor whether a
22management agreement should be entered into with a particular
23finalist. After reviewing the Department's recommendation, the
24Governor may accept or reject the Department's recommendation,
25and shall select a final offeror as the private manager by
26publication of a notice in the Illinois Procurement Bulletin

 

 

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1on or before September 15, 2010. The Governor shall include in
2the notice a detailed explanation and the reasons why the
3final offeror is superior to other offerors and will provide
4management services in a manner that best achieves the
5objectives of this Section. The Governor shall also sign the
6management agreement with the private manager.
7    (i) Any action to contest the private manager selected by
8the Governor under this Section must be brought within 7
9calendar days after the publication of the notice of the
10designation of the private manager as provided in subsection
11(h) of this Section.
12    (j) The Lottery shall remain, for so long as a private
13manager manages the Lottery in accordance with provisions of
14this Act, a Lottery conducted by the State, and the State shall
15not be authorized to sell or transfer the Lottery to a third
16party.
17    (k) Any tangible personal property used exclusively in
18connection with the lottery that is owned by the Department
19and leased to the private manager shall be owned by the
20Department in the name of the State and shall be considered to
21be public property devoted to an essential public and
22governmental function.
23    (l) The Department may exercise any of its powers under
24this Section or any other law as necessary or desirable for the
25execution of the Department's powers under this Section.
26    (m) Neither this Section nor any management agreement

 

 

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1entered into under this Section prohibits the General Assembly
2from authorizing forms of gambling that are not in direct
3competition with the Lottery. The forms of gambling authorized
4by Public Act 101-31 constitute authorized forms of gambling
5that are not in direct competition with the Lottery.
6    (n) The private manager shall be subject to a complete
7investigation in the third, seventh, and tenth years of the
8agreement (if the agreement is for a 10-year term) by the
9Department in cooperation with the Auditor General to
10determine whether the private manager has complied with this
11Section and the management agreement. The private manager
12shall bear the cost of an investigation or reinvestigation of
13the private manager under this subsection.
14    (o) The powers conferred by this Section are in addition
15and supplemental to the powers conferred by any other law. If
16any other law or rule is inconsistent with this Section,
17including, but not limited to, provisions of the Illinois
18Procurement Code, then this Section controls as to any
19management agreement entered into under this Section. This
20Section and any rules adopted under this Section contain full
21and complete authority for a management agreement between the
22Department and a private manager. No law, procedure,
23proceeding, publication, notice, consent, approval, order, or
24act by the Department or any other officer, Department,
25agency, or instrumentality of the State or any political
26subdivision is required for the Department to enter into a

 

 

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1management agreement under this Section. This Section contains
2full and complete authority for the Department to approve any
3contracts entered into by a private manager with a vendor
4providing goods, services, or both goods and services to the
5private manager under the terms of the management agreement,
6including subcontractors of such vendors.
7    Upon receipt of a written request from the Chief
8Procurement Officer, the Department shall provide to the Chief
9Procurement Officer a complete and un-redacted copy of the
10management agreement or any contract that is subject to the
11Department's approval authority under this subsection (o). The
12Department shall provide a copy of the agreement or contract
13to the Chief Procurement Officer in the time specified by the
14Chief Procurement Officer in his or her written request, but
15no later than 5 business days after the request is received by
16the Department. The Chief Procurement Officer must retain any
17portions of the management agreement or of any contract
18designated by the Department as confidential, proprietary, or
19trade secret information in complete confidence pursuant to
20subsection (g) of Section 7 of the Freedom of Information Act.
21The Department shall also provide the Chief Procurement
22Officer with reasonable advance written notice of any contract
23that is pending Department approval.
24    Notwithstanding any other provision of this Section to the
25contrary, the Chief Procurement Officer shall adopt
26administrative rules, including emergency rules, to establish

 

 

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1a procurement process to select a successor private manager if
2a private management agreement has been terminated. The
3selection process shall at a minimum take into account the
4criteria set forth in items (1) through (4) of subsection (e)
5of this Section and may include provisions consistent with
6subsections (f), (g), (h), and (i) of this Section. The Chief
7Procurement Officer shall also implement and administer the
8adopted selection process upon the termination of a private
9management agreement. The Department, after the Chief
10Procurement Officer certifies that the procurement process has
11been followed in accordance with the rules adopted under this
12subsection (o), shall select a final offeror as the private
13manager and sign the management agreement with the private
14manager.
15    Through June 30, 2022, except as provided in Sections
1621.5, 21.6, 21.7, 21.8, 21.9, 21.10, 21.11, 21.12, and 21.13
17of this Act and Section 25-70 of the Sports Wagering Act, the
18Department shall distribute all proceeds of lottery tickets
19and shares sold in the following priority and manner:
20        (1) The payment of prizes and retailer bonuses.
21        (2) The payment of costs incurred in the operation and
22    administration of the Lottery, including the payment of
23    sums due to the private manager under the management
24    agreement with the Department.
25        (3) On the last day of each month or as soon thereafter
26    as possible, the State Comptroller shall direct and the

 

 

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1    State Treasurer shall transfer from the State Lottery Fund
2    to the Common School Fund an amount that is equal to the
3    proceeds transferred in the corresponding month of fiscal
4    year 2009, as adjusted for inflation, to the Common School
5    Fund.
6        (4) On or before September 30 of each fiscal year,
7    deposit any estimated remaining proceeds from the prior
8    fiscal year, subject to payments under items (1), (2), and
9    (3), into the Capital Projects Fund. Beginning in fiscal
10    year 2019, the amount deposited shall be increased or
11    decreased each year by the amount the estimated payment
12    differs from the amount determined from each year-end
13    financial audit. Only remaining net deficits from prior
14    fiscal years may reduce the requirement to deposit these
15    funds, as determined by the annual financial audit.
16    Beginning July 1, 2022, the Department shall distribute
17all proceeds of lottery tickets and shares sold in the manner
18and priority described in Section 9.3 of this Act, except that
19the Department shall make the deposit into the Capital
20Projects Fund that would have occurred under item (4) of this
21subsection (o) on or before September 30, 2022, but for the
22changes made to this subsection by Public Act 102-699.
23    (p) The Department shall be subject to the following
24reporting and information request requirements:
25        (1) the Department shall submit written quarterly
26    reports to the Governor and the General Assembly on the

 

 

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1    activities and actions of the private manager selected
2    under this Section;
3        (2) upon request of the Chief Procurement Officer, the
4    Department shall promptly produce information related to
5    the procurement activities of the Department and the
6    private manager requested by the Chief Procurement
7    Officer; the Chief Procurement Officer must retain
8    confidential, proprietary, or trade secret information
9    designated by the Department in complete confidence
10    pursuant to subsection (g) of Section 7 of the Freedom of
11    Information Act; and
12        (3) at least 30 days prior to the beginning of the
13    Department's fiscal year, the Department shall prepare an
14    annual written report on the activities of the private
15    manager selected under this Section and deliver that
16    report to the Governor and General Assembly.
17(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
18101-561, eff. 8-23-19; 102-558, eff. 8-20-21; 102-699, eff.
194-19-22; 102-1115, eff. 1-9-23.)
 
20    (20 ILCS 1605/10.1)  (from Ch. 120, par. 1160.1)
21    Sec. 10.1. The following are ineligible for any license
22under this Act:
23        (a) any person who has been convicted of a felony;
24        (b) any person who is or has been a professional
25    gambler or gambling promoter;

 

 

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1        (c) any person who has engaged in bookmaking or other
2    forms of illegal gambling;
3        (d) any person who is not of good character and
4    reputation in the community in which he resides;
5        (e) any person who has been found guilty of any fraud
6    or misrepresentation in any connection;
7        (f) any firm or corporation in which a person defined
8    in item (a), (b), (c), (d), or (e) has a proprietary,
9    equitable or credit interest of 5% or more; .
10        (g) any organization in which a person defined in item
11    (a), (b), (c), (d), or (e) is an officer, director, or
12    managing agent, whether compensated or not; and
13        (h) any organization in which a person defined in item
14    (a), (b), (c), (d), or (e) is to participate in the
15    management or sales of lottery tickets or shares.
16    However, with respect to persons defined in (a), the
17Department may grant any such person a license under this Act
18when:
19        1) at least 10 years have elapsed since the date when
20    the sentence for the most recent such conviction was
21    satisfactorily completed;
22        2) the applicant has no history of criminal activity
23    subsequent to such conviction;
24        3) the applicant has complied with all conditions of
25    probation, conditional discharge, supervision, parole or
26    mandatory supervised release; and

 

 

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1        4) the applicant presents at least 3 letters of
2    recommendation from responsible citizens in his community
3    who personally can attest that the character and attitude
4    of the applicant indicate that he is unlikely to commit
5    another crime.
6    The Department may revoke, without notice or a hearing,
7the license of any agent who violates this Act or any rule or
8regulation promulgated pursuant to this Act. However, if the
9Department does revoke a license without notice and an
10opportunity for a hearing, the Department shall, by
11appropriate notice, afford the person whose license has been
12revoked an opportunity for a hearing within 30 days after the
13revocation order has been issued. As a result of any such
14hearing, the Department may confirm its action in revoking the
15license, or it may order the restoration of such license.
16(Source: P.A. 97-464, eff. 10-15-11.)
 
17    (20 ILCS 1605/10.6)  (from Ch. 120, par. 1160.6)
18    Sec. 10.6. The Department shall make an effort to more
19directly inform players of the odds of winning prizes by
20publishing the information for all games on the Department's
21public website. This effort shall include, at a minimum, that
22the Department require all ticket agents to display a placard
23stating the odds of winning for each game offered by that
24agent.
25(Source: P.A. 97-464, eff. 10-15-11.)
 

 

 

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1    (20 ILCS 1605/19)  (from Ch. 120, par. 1169)
2    Sec. 19. The Department shall establish an appropriate
3period for the claiming of prizes for each lottery game
4offered. Each claim period shall be stated in game rules and
5written play instructions issued by the Director in accordance
6with Section 7.1 of this Act. Written play instructions shall
7be made available on the Department's public website or by the
8Department by request to all players through sales agents
9licensed to sell game tickets or shares. Prizes for lottery
10games which involve the purchase of a physical lottery ticket
11may be claimed only by presentation of a valid winning lottery
12ticket that matches validation records on file with the
13Lottery; no claim may be honored which is based on the
14assertion that the ticket was lost or stolen. No lottery
15ticket which has been altered, mutilated, or fails to pass
16validation tests shall be deemed to be a winning ticket.
17    If no claim is made for the money within the established
18claim period, the prize may be included in the prize pool of
19such special drawing or drawings as the Department may, from
20time to time, designate. Unclaimed multi-state game prize
21money may be included in the multi-state prize pool for such
22special drawing or drawings as the multi-state game directors
23may, from time to time, designate. Any bonuses offered by the
24Department to sales agents who sell winning tickets or shares
25shall be payable to such agents regardless of whether or not

 

 

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1the prize money on the ticket or share is claimed, provided
2that the agent can be identified as the vendor of the winning
3ticket or share, and that the winning ticket or share was sold
4on or after January 1, 1984. All unclaimed prize money not
5included in the prize pool of a special drawing shall be
6transferred to the Common School Fund.
7(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
 
8    (20 ILCS 1605/20)  (from Ch. 120, par. 1170)
9    Sec. 20. State Lottery Fund.
10    (a) There is created in the State Treasury a special fund
11to be known as the State Lottery Fund. Such fund shall consist
12of all revenues received from (1) the sale of lottery tickets
13or shares, (net of commissions, fees representing those
14expenses that are directly proportionate to the sale of
15tickets or shares at the agent location, and prizes of less
16than $600 or less which have been validly paid at the agent
17level), (2) application fees, and (3) all other sources
18including moneys credited or transferred thereto from any
19other fund or source pursuant to law. Interest earnings of the
20State Lottery Fund shall be credited to the Common School
21Fund.
22    (a-5) The receipt and distribution of moneys under Section
2321.4 of this Act shall be in accordance with Section 21.4.
24    (b) The receipt and distribution of moneys under Section
2521.5 of this Law shall be in accordance with Section 21.5.

 

 

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1    (c) The receipt and distribution of moneys under Section
221.6 of this Law shall be in accordance with Section 21.6.
3    (d) The receipt and distribution of moneys under Section
421.7 of this Law shall be in accordance with Section 21.7.
5    (e) The receipt and distribution of moneys under Section
621.8 of this Law shall be in accordance with Section 21.8.
7    (f) The receipt and distribution of moneys under Section
821.9 of this Law shall be in accordance with Section 21.9.
9    (g) The receipt and distribution of moneys under Section
1021.10 of this Law shall be in accordance with Section 21.10.
11    (h) The receipt and distribution of moneys under Section
1221.11 of this Law shall be in accordance with Section 21.11.
13    (i) (Blank).
14    (j) The receipt and distribution of moneys under Section
1521.13 of this Law shall be in accordance with Section 21.13.
16    (k) The receipt and distribution of moneys under Section
1725-70 of the Sports Wagering Act shall be in accordance with
18Section 25-70 of the Sports Wagering Act.
19    (l) The receipt and distribution of moneys under Section
2021.15 of this Law shall be in accordance with Section 21.15.
21    (m) The receipt and distribution of moneys under Section
2221.16 of this Law shall be in accordance with Section 21.16.
23(Source: P.A. 102-16, eff. 6-17-21; 103-381, eff. 7-28-23.)
 
24    (20 ILCS 1605/20.1)  (from Ch. 120, par. 1170.1)
25    Sec. 20.1. Department account.

 

 

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1    (a) The Department is authorized to pay validated prizes
2up to $25,000 from funds held by the Department in an account
3separate and apart from all public moneys of the State. Moneys
4in this account shall be administered by the Director
5exclusively for the purposes of issuing payments to prize
6winners authorized by this Section. Moneys in this account
7shall be deposited by the Department into the Public
8Treasurers' Investment Pool established under Section 17 of
9the State Treasurer Act. The Department shall submit vouchers
10from time to time as needed for reimbursement of this account
11from moneys appropriated for prizes from the State Lottery
12Fund. Investment income earned from this account shall be
13deposited monthly by the Department into the Common School
14Fund. The Department shall file quarterly fiscal reports
15specifying the activity of this account as required under
16Section 16 of the State Comptroller Act, and shall file
17quarterly with the General Assembly, the Auditor General, the
18Comptroller, and the State Treasurer a report indicating the
19costs associated with this activity.
20    (b) The Department is authorized to enter into an
21interagency agreement with the Office of the Comptroller or
22any other State agency to establish responsibilities, duties,
23and procedures for complying with the Comptroller's Offset
24System under Section 10.05 of the State Comptroller Act. All
25federal and State tax reporting and withholding requirements
26relating to prize winners under this Section shall be the

 

 

HB5229 Engrossed- 26 -LRB103 38855 AWJ 68992 b

1responsibility of the Department. Moneys from this account may
2not be used to pay amounts to deferred prize winners. Moneys
3may not be transferred from the State Lottery Fund to this
4account for payment of prizes under this Section until
5procedures are implemented to comply with the Comptroller's
6Offset System and sufficient internal controls are in place to
7validate prizes.
8(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
 
9    (20 ILCS 1605/24)  (from Ch. 120, par. 1174)
10    Sec. 24. The State Comptroller shall conduct a preaudit of
11all accounts and transactions of the Department in connection
12with the operation of the State Lottery under the State
13Comptroller Act, excluding payments issued by the Department
14for prizes of $25,000 or less.
15    The Auditor General or a certified public accountant firm
16appointed by him shall conduct an annual post-audit of all
17accounts and transactions of the Department in connection with
18the operation of the State Lottery and other special post
19audits as the Auditor General, the Legislative Audit
20Commission, or the General Assembly deems necessary. The
21annual post-audits shall include payments made by lottery
22sales agents of prizes of less than $600 or less authorized
23under Section 20, and payments made by the Department of
24prizes up to $25,000 authorized under Section 20.1. The
25Auditor General or his agent conducting an audit under this

 

 

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1Act shall have access and authority to examine any and all
2records of the Department or the Board, its distributing
3agents and its licensees.
4(Source: P.A. 94-776, eff. 5-19-06.)
 
5    (20 ILCS 1605/27)  (from Ch. 120, par. 1177)
6    Sec. 27. (a) The Department may State Treasurer may, with
7the consent of the Director, contract with any person or
8corporation, including, without limitation, a bank, banking
9house, trust company or investment banking firm, to perform
10such financial functions, activities or services in connection
11with operation of the lottery. The State Treasurer may, with
12the consent of the Director, act as an agent of the Department
13to perform the financial functions as the Director may
14prescribe as the State Treasurer and the Director may
15prescribe.
16    (b) All proceeds from investments made pursuant to
17contracts executed by the Department or the State Treasurer,
18with the consent of the Director, to perform financial
19functions, activities or services in connection with operation
20of the lottery, shall be deposited and held by the State
21Treasurer as ex-officio custodian thereof, separate and apart
22from all public money or funds of this State in a special trust
23fund outside the State treasury. Such trust fund shall be
24known as the "Deferred Lottery Prize Winners Trust Fund", and
25shall be administered by the Director.

 

 

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1    The Director shall, at such times and in such amounts as
2shall be necessary, prepare and send to the State Comptroller
3vouchers requesting payment from the Deferred Lottery Prize
4Winners Trust Fund to deferred prize winners, in a manner that
5will insure the timely payment of such amounts owed.
6    This Act shall constitute an irrevocable appropriation of
7all amounts necessary for that purpose, and the irrevocable
8and continuing authority for and direction to the Director and
9the State Treasurer to make the necessary payments out of such
10trust fund for that purpose.
11    (c) Moneys invested pursuant to subsection (a) of this
12Section may be invested only in bonds, notes, certificates of
13indebtedness, treasury bills, or other securities constituting
14direct obligations of the United States of America and all
15securities or obligations the prompt payment of principal and
16interest of which is guaranteed by a pledge of the full faith
17and credit of the United States of America. Interest earnings
18on moneys in the Deferred Lottery Prize Winners Trust Fund
19shall remain in such fund and be used to pay the winners of
20lottery prizes deferred as to payment until such obligations
21are discharged. Proceeds from bonds purchased and interest
22accumulated as a result of a grand prize multi-state game
23ticket that goes unclaimed will be transferred after the
24termination of the relevant claim period directly from the
25lottery's Deferred Lottery Prize Winners Trust Fund to each
26respective multi-state partner state according to its

 

 

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1contribution ratio.
2    (c-5) If a deferred lottery prize is not claimed within
3the claim period established by game rule, then the securities
4or other instruments purchased to fund the prize shall be
5liquidated and the liquidated amount shall be transferred to
6the State Lottery Fund for disposition pursuant to Section 19
7of this Act.
8    (c-10) The Director may use a portion of the moneys in the
9Deferred Lottery Prize Winners Trust Fund to purchase bonds to
10pay a lifetime prize if the prize duration exceeds the length
11of available securities. If the winner of a lifetime prize
12exceeds his or her life expectancy as determined using
13actuarial assumptions and the securities or moneys set aside
14to pay the prize have been exhausted, moneys in the State
15Lottery Fund shall be used to make payments to the winner for
16the duration of the winner's life.
17    (c-15) From time to time, the Director may request that
18the State Comptroller transfer any excess moneys in the
19Deferred Lottery Prize Winners Trust Fund to the State Lottery
20Fund.
21    (d) This amendatory Act of 1985 shall be construed
22liberally to effect the purposes of the Illinois Lottery Law.
23(Source: P.A. 97-464, eff. 10-15-11; 98-463, eff. 8-16-13;
2498-499, eff. 8-16-13.)