Illinois General Assembly - Full Text of SB0211
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Full Text of SB0211  100th General Assembly


Rep. Thaddeus Jones

Filed: 5/23/2018





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2    AMENDMENT NO. ______. Amend Senate Bill 211 by replacing
3everything after the enacting clause with the following:
4    "Section 1. This Act may be referred to as the Illinois
5Homeless Veterans and Working Families Lottery Law.
6    Section 5. The Illinois Lottery Law is amended by changing
7Sections 2, 9, 9.1, and 20 and by adding Section 21.10 as
9    (20 ILCS 1605/2)  (from Ch. 120, par. 1152)
10    (Text of Section before amendment by P.A. 100-466)
11    Sec. 2. This Act is enacted to implement and establish
12within the State a lottery to be conducted by the State through
13the Department. The entire net proceeds of the Lottery are to
14be used for the support of the State's Common School Fund,
15except as provided in subsection (o) of Section 9.1 and



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1Sections 21.5, 21.6, 21.7, 21.8, and 21.9, and 21.10. The
2General Assembly finds that it is in the public interest for
3the Department to conduct the functions of the Lottery with the
4assistance of a private manager under a management agreement
5overseen by the Department. The Department shall be accountable
6to the General Assembly and the people of the State through a
7comprehensive system of regulation, audits, reports, and
8enduring operational oversight. The Department's ongoing
9conduct of the Lottery through a management agreement with a
10private manager shall act to promote and ensure the integrity,
11security, honesty, and fairness of the Lottery's operation and
12administration. It is the intent of the General Assembly that
13the Department shall conduct the Lottery with the assistance of
14a private manager under a management agreement at all times in
15a manner consistent with 18 U.S.C. 1307(a)(1), 1307(b)(1),
17(Source: P.A. 98-649, eff. 6-16-14; 99-933, eff. 1-27-17.)
18    (Text of Section after amendment by P.A. 100-466)
19    Sec. 2. This Act is enacted to implement and establish
20within the State a lottery to be conducted by the State through
21the Department. The entire net proceeds of the Lottery are to
22be used for the support of the State's Common School Fund,
23except as provided in subsection (o) of Section 9.1 and
24Sections 21.5, 21.6, 21.7, 21.8, and 21.9, and 21.10. The
25General Assembly finds that it is in the public interest for



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1the Department to conduct the functions of the Lottery with the
2assistance of a private manager under a management agreement
3overseen by the Department. The Department shall be accountable
4to the General Assembly and the people of the State through a
5comprehensive system of regulation, audits, reports, and
6enduring operational oversight. The Department's ongoing
7conduct of the Lottery through a management agreement with a
8private manager shall act to promote and ensure the integrity,
9security, honesty, and fairness of the Lottery's operation and
10administration. It is the intent of the General Assembly that
11the Department shall conduct the Lottery with the assistance of
12a private manager under a management agreement at all times in
13a manner consistent with 18 U.S.C. 1307(a)(1), 1307(b)(1),
15    Beginning with Fiscal Year 2018 and every year thereafter,
16any moneys transferred from the State Lottery Fund to the
17Common School Fund shall be supplemental to, and not in lieu
18of, any other money due to be transferred to the Common School
19Fund by law or appropriation.
20(Source: P.A. 99-933, eff. 1-27-17; 100-466, eff. 6-1-18.)
21    (20 ILCS 1605/9)  (from Ch. 120, par. 1159)
22    Sec. 9. The Director, as administrative head of the
23Department, shall direct and supervise all its administrative
24and technical activities. In addition to the duties imposed
25upon him elsewhere in this Act, it shall be the Director's



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2        a. To supervise and administer the operation of the
3    lottery in accordance with the provisions of this Act or
4    such rules and regulations of the Department adopted
5    thereunder.
6        b. To attend meetings of the Board or to appoint a
7    designee to attend in his stead.
8        c. To employ and direct such personnel in accord with
9    the Personnel Code, as may be necessary to carry out the
10    purposes of this Act. In addition, the Director may by
11    agreement secure such services as he or she may deem
12    necessary from any other department, agency, or unit of the
13    State government, and may employ and compensate such
14    consultants and technical assistants as may be required and
15    is otherwise permitted by law.
16        d. To license, in accordance with the provisions of
17    Sections 10 and 10.1 of this Act and the rules and
18    regulations of the Department adopted thereunder, as
19    agents to sell lottery tickets such persons as in his
20    opinion will best serve the public convenience and promote
21    the sale of tickets or shares. The Director may require a
22    bond from every licensed agent, in such amount as provided
23    in the rules and regulations of the Department. Every
24    licensed agent shall prominently display his license, or a
25    copy thereof, as provided in the rules and regulations of
26    the Department.



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1        e. To suspend or revoke any license issued pursuant to
2    this Act or the rules and regulations promulgated by the
3    Department thereunder.
4        f. To confer regularly as necessary or desirable and
5    not less than once every month with the Lottery Control
6    Board on the operation and administration of the Lottery;
7    to make available for inspection by the Board or any member
8    of the Board, upon request, all books, records, files, and
9    other information and documents of his office; to advise
10    the Board and recommend such rules and regulations and such
11    other matters as he deems necessary and advisable to
12    improve the operation and administration of the lottery.
13        g. To enter into contracts for the operation of the
14    lottery, or any part thereof, and into contracts for the
15    promotion of the lottery on behalf of the Department with
16    any person, firm or corporation, to perform any of the
17    functions provided for in this Act or the rules and
18    regulations promulgated thereunder. The Department shall
19    not expend State funds on a contractual basis for such
20    functions unless those functions and expenditures are
21    expressly authorized by the General Assembly.
22        h. To enter into an agreement or agreements with the
23    management of state lotteries operated pursuant to the laws
24    of other states for the purpose of creating and operating a
25    multi-state lottery game wherein a separate and distinct
26    prize pool would be combined to award larger prizes to the



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1    public than could be offered by the several state
2    lotteries, individually. No tickets or shares offered in
3    connection with a multi-state lottery game shall be sold
4    within the State of Illinois, except those offered by and
5    through the Department. No such agreement shall purport to
6    pledge the full faith and credit of the State of Illinois,
7    nor shall the Department expend State funds on a
8    contractual basis in connection with any such game unless
9    such expenditures are expressly authorized by the General
10    Assembly, provided, however, that in the event of error or
11    omission by the Illinois State Lottery in the conduct of
12    the game, as determined by the multi-state game directors,
13    the Department shall be authorized to pay a prize winner or
14    winners the lesser of a disputed prize or $1,000,000, any
15    such payment to be made solely from funds appropriated for
16    game prize purposes. The Department shall be authorized to
17    share in the ordinary operating expenses of any such
18    multi-state lottery game, from funds appropriated by the
19    General Assembly, and in the event the multi-state game
20    control offices are physically located within the State of
21    Illinois, the Department is authorized to advance start-up
22    operating costs not to exceed $150,000, subject to
23    proportionate reimbursement of such costs by the other
24    participating state lotteries. The Department shall be
25    authorized to share proportionately in the costs of
26    establishing a liability reserve fund from funds



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1    appropriated by the General Assembly. The Department is
2    authorized to transfer prize award funds attributable to
3    Illinois sales of multi-state lottery game tickets to the
4    multi-state control office, or its designated depository,
5    for deposit to such game pool account or accounts as may be
6    established by the multi-state game directors, the records
7    of which account or accounts shall be available at all
8    times for inspection in an audit by the Auditor General of
9    Illinois and any other auditors pursuant to the laws of the
10    State of Illinois. No multi-state game prize awarded to a
11    nonresident of Illinois, with respect to a ticket or share
12    purchased in a state other than the State of Illinois,
13    shall be deemed to be a prize awarded under this Act for
14    the purpose of taxation under the Illinois Income Tax Act.
15    The Department shall promulgate such rules as may be
16    appropriate to implement the provisions of this Section.
17        i. To make a continuous study and investigation of (1)
18    the operation and the administration of similar laws which
19    may be in effect in other states or countries, (2) any
20    literature on the subject which from time to time may be
21    published or available, (3) any Federal laws which may
22    affect the operation of the lottery, and (4) the reaction
23    of Illinois citizens to existing and potential features of
24    the lottery with a view to recommending or effecting
25    changes that will tend to serve the purposes of this Act.
26        j. To report monthly to the State Treasurer and the



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1    Lottery Control Board a full and complete statement of
2    lottery revenues, prize disbursements and other expenses
3    for each month and the amounts to be transferred to the
4    Common School Fund pursuant to Section 7.2, and to make an
5    annual report, which shall include a full and complete
6    statement of lottery revenues, prize disbursements and
7    other expenses, to the Governor and the Board. All reports
8    required by this subsection shall be public and copies of
9    all such reports shall be sent to the Speaker of the House,
10    the President of the Senate, and the minority leaders of
11    both houses.
12        k. To keep the name and municipality of residence of
13    the prize winner of a prize of $250,000 or greater
14    confidential upon the prize winner making a written request
15    that his or her name and municipality of residence be kept
16    confidential. The prize winner must submit his or her
17    written request at the time of claiming the prize. The
18    written request shall be in the form established by the
19    Department. Nothing in this paragraph k supersedes the
20    Department's duty to disclose the name and municipality of
21    residence of a prize winner of a prize of $250,000 or
22    greater pursuant to the Freedom of Information Act.
23(Source: P.A. 98-499, eff. 8-16-13; 99-933, eff. 1-27-17.)
24    (20 ILCS 1605/9.1)
25    Sec. 9.1. Private manager and management agreement.



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1    (a) As used in this Section:
2    "Offeror" means a person or group of persons that responds
3to a request for qualifications under this Section.
4    "Request for qualifications" means all materials and
5documents prepared by the Department to solicit the following
6from offerors:
7        (1) Statements of qualifications.
8        (2) Proposals to enter into a management agreement,
9    including the identity of any prospective vendor or vendors
10    that the offeror intends to initially engage to assist the
11    offeror in performing its obligations under the management
12    agreement.
13    "Final offer" means the last proposal submitted by an
14offeror in response to the request for qualifications,
15including the identity of any prospective vendor or vendors
16that the offeror intends to initially engage to assist the
17offeror in performing its obligations under the management
19    "Final offeror" means the offeror ultimately selected by
20the Governor to be the private manager for the Lottery under
21subsection (h) of this Section.
22    (b) By September 15, 2010, the Governor shall select a
23private manager for the total management of the Lottery with
24integrated functions, such as lottery game design, supply of
25goods and services, and advertising and as specified in this



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1    (c) Pursuant to the terms of this subsection, the
2Department shall endeavor to expeditiously terminate the
3existing contracts in support of the Lottery in effect on the
4effective date of this amendatory Act of the 96th General
5Assembly in connection with the selection of the private
6manager. As part of its obligation to terminate these contracts
7and select the private manager, the Department shall establish
8a mutually agreeable timetable to transfer the functions of
9existing contractors to the private manager so that existing
10Lottery operations are not materially diminished or impaired
11during the transition. To that end, the Department shall do the
13        (1) where such contracts contain a provision
14    authorizing termination upon notice, the Department shall
15    provide notice of termination to occur upon the mutually
16    agreed timetable for transfer of functions;
17        (2) upon the expiration of any initial term or renewal
18    term of the current Lottery contracts, the Department shall
19    not renew such contract for a term extending beyond the
20    mutually agreed timetable for transfer of functions; or
21        (3) in the event any current contract provides for
22    termination of that contract upon the implementation of a
23    contract with the private manager, the Department shall
24    perform all necessary actions to terminate the contract on
25    the date that coincides with the mutually agreed timetable
26    for transfer of functions.



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1    If the contracts to support the current operation of the
2Lottery in effect on the effective date of this amendatory Act
3of the 96th General Assembly are not subject to termination as
4provided for in this subsection (c), then the Department may
5include a provision in the contract with the private manager
6specifying a mutually agreeable methodology for incorporation.
7    (c-5) The Department shall include provisions in the
8management agreement whereby the private manager shall, for a
9fee, and pursuant to a contract negotiated with the Department
10(the "Employee Use Contract"), utilize the services of current
11Department employees to assist in the administration and
12operation of the Lottery. The Department shall be the employer
13of all such bargaining unit employees assigned to perform such
14work for the private manager, and such employees shall be State
15employees, as defined by the Personnel Code. Department
16employees shall operate under the same employment policies,
17rules, regulations, and procedures, as other employees of the
18Department. In addition, neither historical representation
19rights under the Illinois Public Labor Relations Act, nor
20existing collective bargaining agreements, shall be disturbed
21by the management agreement with the private manager for the
22management of the Lottery.
23    (d) The management agreement with the private manager shall
24include all of the following:
25        (1) A term not to exceed 10 years, including any
26    renewals.



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



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



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



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



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



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1request for qualifications process consistent with Section
220-35 of the Illinois Procurement Code, which shall take into
4        (1) the offeror's ability to market the Lottery to
5    those residents who are new, infrequent, or lapsed players
6    of the Lottery, especially those who are most likely to
7    make regular purchases on the Internet;
8        (2) the offeror's ability to address the State's
9    concern with the social effects of gambling on those who
10    can least afford to do so;
11        (3) the offeror's ability to provide the most
12    successful management of the Lottery for the benefit of the
13    people of the State based on current and past business
14    practices or plans of the offeror; and
15        (4) the offeror's poor or inadequate past performance
16    in servicing, equipping, operating or managing a lottery on
17    behalf of Illinois, another State or foreign government and
18    attracting persons who are not currently regular players of
19    a lottery.
20    (f) The Department may retain the services of an advisor or
21advisors with significant experience in financial services or
22the management, operation, and procurement of goods, services,
23and equipment for a government-run lottery to assist in the
24preparation of the terms of the request for qualifications and
25selection of the private manager. Any prospective advisor
26seeking to provide services under this subsection (f) shall



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



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



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



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2    (l) The Department may exercise any of its powers under
3this Section or any other law as necessary or desirable for the
4execution of the Department's powers under this Section.
5    (m) Neither this Section nor any management agreement
6entered into under this Section prohibits the General Assembly
7from authorizing forms of gambling that are not in direct
8competition with the Lottery.
9    (n) The private manager shall be subject to a complete
10investigation in the third, seventh, and tenth years of the
11agreement (if the agreement is for a 10-year term) by the
12Department in cooperation with the Auditor General to determine
13whether the private manager has complied with this Section and
14the management agreement. The private manager shall bear the
15cost of an investigation or reinvestigation of the private
16manager under this subsection.
17    (o) The powers conferred by this Section are in addition
18and supplemental to the powers conferred by any other law. If
19any other law or rule is inconsistent with this Section,
20including, but not limited to, provisions of the Illinois
21Procurement Code, then this Section controls as to any
22management agreement entered into under this Section. This
23Section and any rules adopted under this Section contain full
24and complete authority for a management agreement between the
25Department and a private manager. No law, procedure,
26proceeding, publication, notice, consent, approval, order, or



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



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1    Notwithstanding any other provision of this Section to the
2contrary, the Chief Procurement Officer shall adopt
3administrative rules, including emergency rules, to establish
4a procurement process to select a successor private manager if
5a private management agreement has been terminated. The
6selection process shall at a minimum take into account the
7criteria set forth in items (1) through (4) of subsection (e)
8of this Section and may include provisions consistent with
9subsections (f), (g), (h), and (i) of this Section. The Chief
10Procurement Officer shall also implement and administer the
11adopted selection process upon the termination of a private
12management agreement. The Department, after the Chief
13Procurement Officer certifies that the procurement process has
14been followed in accordance with the rules adopted under this
15subsection (o), shall select a final offeror as the private
16manager and sign the management agreement with the private
18    Except as provided in Sections 21.5, 21.6, 21.7, 21.8, and
1921.9, and 21.10, the Department shall distribute all proceeds
20of lottery tickets and shares sold in the following priority
21and manner:
22        (1) The payment of prizes and retailer bonuses.
23        (2) The payment of costs incurred in the operation and
24    administration of the Lottery, including the payment of
25    sums due to the private manager under the management
26    agreement with the Department.



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1        (3) On the last day of each month or as soon thereafter
2    as possible, the State Comptroller shall direct and the
3    State Treasurer shall transfer from the State Lottery Fund
4    to the Common School Fund an amount that is equal to the
5    proceeds transferred in the corresponding month of fiscal
6    year 2009, as adjusted for inflation, to the Common School
7    Fund.
8        (4) On or before the last day of each fiscal year,
9    deposit any remaining proceeds, subject to payments under
10    items (1), (2), and (3) into the Capital Projects Fund each
11    fiscal year.
12    (p) The Department shall be subject to the following
13reporting and information request requirements:
14        (1) the Department shall submit written quarterly
15    reports to the Governor and the General Assembly on the
16    activities and actions of the private manager selected
17    under this Section;
18        (2) upon request of the Chief Procurement Officer, the
19    Department shall promptly produce information related to
20    the procurement activities of the Department and the
21    private manager requested by the Chief Procurement
22    Officer; the Chief Procurement Officer must retain
23    confidential, proprietary, or trade secret information
24    designated by the Department in complete confidence
25    pursuant to subsection (g) of Section 7 of the Freedom of
26    Information Act; and



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1        (3) at least 30 days prior to the beginning of the
2    Department's fiscal year, the Department shall prepare an
3    annual written report on the activities of the private
4    manager selected under this Section and deliver that report
5    to the Governor and General Assembly.
6(Source: P.A. 99-933, eff. 1-27-17; 100-391, eff. 8-25-17.)
7    (20 ILCS 1605/20)  (from Ch. 120, par. 1170)
8    Sec. 20. State Lottery Fund.
9    (a) There is created in the State Treasury a special fund
10to be known as the "State Lottery Fund". Such fund shall
11consist of all revenues received from (1) the sale of lottery
12tickets or shares, (net of commissions, fees representing those
13expenses that are directly proportionate to the sale of tickets
14or shares at the agent location, and prizes of less than $600
15which have been validly paid at the agent level), (2)
16application fees, and (3) all other sources including moneys
17credited or transferred thereto from any other fund or source
18pursuant to law. Interest earnings of the State Lottery Fund
19shall be credited to the Common School Fund.
20    (b) The receipt and distribution of moneys under Section
2121.5 of this Act shall be in accordance with Section 21.5.
22    (c) The receipt and distribution of moneys under Section
2321.6 of this Act shall be in accordance with Section 21.6.
24    (d) The receipt and distribution of moneys under Section
2521.7 of this Act shall be in accordance with Section 21.7.



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1    (e) The receipt and distribution of moneys under Section
221.8 of this Act shall be in accordance with Section 21.8.
3    (f) The receipt and distribution of moneys under Section
421.9 of this Act shall be in accordance with Section 21.9.
5    (g) The receipt and distribution of moneys under Section
621.10 of this Act shall be in accordance with Section 21.10.
7(Source: P.A. 98-649, eff. 6-16-14.)
8    (20 ILCS 1605/21.10 new)
9    Sec. 21.10. Scratch-off for homelessness prevention
11    (a) The Department shall offer a special instant
12scratch-off game to fund homelessness prevention programs. The
13game shall commence on July 1, 2019 or as soon thereafter, at
14the discretion of the Director, as is reasonably practical. The
15operation of the game shall be governed by this Act and any
16rules adopted by the Department. If any provision of this
17Section is inconsistent with any other provision of this Act,
18then this Section governs.
19    (b) The Homelessness Prevention Revenue Fund is created as
20a special fund in the State treasury. The net revenue from the
21scratch-off game to fund homelessness prevention programs
22shall be deposited into the Homelessness Prevention Revenue
23Fund. Subject to appropriation, moneys in the Fund shall be
24used by the Department of Human Services solely for grants to
25homelessness prevention and assistance projects under the



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1Homelessness Prevention Act.
2    As used in this subsection, "net revenue" means the total
3amount for which tickets have been sold less the sum of the
4amount paid out in the prizes and the actual administrative
5expenses of the Department solely related to the scratch-off
6game under this Section.
7    (c) During the time that tickets are sold for the
8scratch-off game to fund homelessness prevention programs, the
9Department shall not unreasonably diminish the efforts devoted
10to marketing any other instant scratch-off lottery game.
11    (d) The Department may adopt any rules necessary to
12implement and administer the provisions of this Section.
13    (e) Nothing in this Section shall be construed to affect
14any revenue that any Homelessness Prevention line item receives
15through the General Revenue Fund or the Illinois Affordable
16Housing Trust Fund.
17    Section 10. The State Finance Act is amended by adding
18Section 5.886 as follows:
19    (30 ILCS 105/5.886 new)
20    Sec. 5.886. The Homelessness Prevention Revenue Fund.
21    Section 95. No acceleration or delay. Where this Act makes
22changes in a statute that is represented in this Act by text
23that is not yet or no longer in effect (for example, a Section



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1represented by multiple versions), the use of that text does
2not accelerate or delay the taking effect of (i) the changes
3made by this Act or (ii) provisions derived from any other
4Public Act.
5    Section 99. Effective date. This Act takes effect upon
6becoming law.".