HB4128ham002 95TH GENERAL ASSEMBLY

Rep. Angelo Saviano

Filed: 5/15/2008

09500HB4128ham002 LRB095 12878 HLH 48796 a

AMENDMENT TO HOUSE BILL 4128

AMENDMENT NO. ______. Amend House Bill 4128, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Lottery Law is amended by adding Sections 7.12, 7.13, 7.14, 7.15, and 27.5 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 propose rules to the General Assembly necessary for the administration of this program. The provisions of this Section and the proposed 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, and additional lottery games may be offered through the electronic distribution.

(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's proposed rules must include a determination of 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, 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. The Department's proposed rules must adopt standards to prevent the unauthorized use of online lottery accounts.

(g) The Department's proposed rules may 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 and 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.

(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 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 the applicant's name, address, age, driver's license number, or the number of an official state-approved identification card, an e-mail address, and the applicant's last 4 digits of his or her social security number. The private Internet agent shall verify the person's name, age, address, and driver's license or identification card number pursuant to the procedures set forth in the rules adopted by the Department, subject to Section 27.5. Any such procedures that involve the use of information maintained by the Secretary of State must be approved by the Secretary of State.

(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.

(20 ILCS 1605/27.5 new)

Sec. 27.5. No rulemaking authority. Notwithstanding any other provision of this Act or any other rulemaking authority that may exist, on and after the effective date of this amendatory Act of the 95th General Assembly, neither the Governor nor any agency or agency head under the jurisdiction of the Governor has any authority to make or promulgate rules to implement or enforce the provisions of this Act. If, however, the Department believes that rules are necessary to implement or enforce the provisions of this Act, the Department may suggest rules to the General Assembly by filing them with the Clerk of the House and Secretary of the Senate and by requesting that the General Assembly authorize such rulemaking by law, enact those suggested rules into law, or take any other appropriate action in the General Assembly's discretion. Nothing contained in this Act shall be interpreted to grant rulemaking authority under any other Illinois statute where such authority is not otherwise explicitly given. For the purposes of this Act, "rules" is given the meaning contained in Section 1-70 of the Illinois Administrative Procedure Act, and "agency" and "agency head" are given the meanings contained in Sections 1-20 and 1-25 of the Illinois Administrative Procedure Act to the extent that such definitions apply to agencies or agency heads under the jurisdiction of the Governor.

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