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| Public Act 097-1121 | ||||
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AN ACT concerning the lottery.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 10. The Illinois Lottery Law is amended by changing | ||||
Section 7.12 and adding Section 14.4 as follows: | ||||
(20 ILCS 1605/7.12) | ||||
Sec. 7.12. Internet pilot program. | ||||
(a) The General Assembly finds that: | ||||
(1) the consumer market in Illinois has changed since | ||||
the creation of the Illinois State Lottery in 1974; | ||||
(2) the Internet has become an integral part of | ||||
everyday life for a significant number of Illinois | ||||
residents not only in regards to their professional life, | ||||
but also in regards to personal business and communication; | ||||
and | ||||
(3) the current practices of selling lottery tickets | ||||
does not appeal to the new form of market participants who | ||||
prefer to make purchases on the internet at their own | ||||
convenience. | ||||
It is the intent of the General Assembly to create an | ||||
Internet pilot program for the sale of lottery tickets to | ||||
capture this new form of market participant. | ||||
(b) The Department shall create a pilot program that allows | ||||
an individual 18 years of age or older to purchase lottery | ||
tickets or shares on the Internet without using a Lottery | ||
retailer with on-line status, as those terms are defined by | ||
rule. The Department shall restrict the sale of lottery tickets | ||
on the Internet to transactions initiated and received or | ||
otherwise made exclusively within the State of Illinois. The | ||
Department shall adopt rules necessary for the administration | ||
of this program. These rules shall include, among other things, | ||
requirements for marketing of the Lottery to infrequent | ||
players, as well as limitations on the purchases that may be | ||
made through any one individual's lottery account. The | ||
provisions of this Act and the rules adopted under this Act | ||
shall apply to the sale of lottery tickets or shares under this | ||
program. | ||
Before beginning the pilot program, the Department of the | ||
Lottery must submit a request to the United States Department | ||
of Justice for review of the State's plan to implement a pilot | ||
program for the sale of lottery tickets on the Internet and its | ||
propriety under federal law. The Department shall implement the | ||
Internet pilot program only if the Department of Justice does | ||
not object to the implementation of the program within a | ||
reasonable period of time after its review. | ||
The Department is obligated to implement the pilot program | ||
set forth in this Section and Sections 7.15 and 7.16 only at | ||
such time, and to such extent, that the Department of Justice | ||
does not object to the implementation of the program within a | ||
reasonable period of time after its review. While the Illinois | ||
Lottery may only offer Lotto, and Mega Millions, and Powerball | ||
games through the pilot program, the Department shall request | ||
review from the federal Department of Justice for the Illinois | ||
Lottery to sell lottery tickets on the Internet on behalf of | ||
the State of Illinois that are not limited to just these games. | ||
The Department shall authorize the private manager to | ||
implement and administer the program pursuant to the management | ||
agreement entered into under Section 9.1 and in a manner | ||
consistent with the provisions of this Section. If a private | ||
manager has not been selected pursuant to Section 9.1 at the | ||
time the Department is obligated to implement the pilot | ||
program, then the Department shall not proceed with the pilot | ||
program until after the selection of the private manager, at | ||
which time the Department shall authorize the private manager | ||
to implement and administer the program pursuant to the | ||
management agreement entered into under Section 9.1 and in a | ||
manner consistent with the provisions of this Section. | ||
The pilot program shall last for not less than 36 months, | ||
but not more than 48 months from the date of its initial | ||
operation. | ||
Nothing in this Section shall be construed as prohibiting | ||
the Department from implementing and operating a website portal | ||
whereby individuals who are 18 years of age or older with an | ||
Illinois mailing address may apply to purchase lottery tickets | ||
via subscription. Nothing in this Section shall also be | ||
construed as prohibiting the sale of Lotto, Mega Millions, and | ||
Powerball games by a lottery licensee pursuant to the | ||
Department's rules. | ||
(c) There is created the Internet Lottery Study Committee | ||
as an advisory body within the Department. The Department shall | ||
conduct a study to determine the impact of the Internet pilot | ||
program on lottery licensees. The Department shall also | ||
determine the feasibility of the sale of stored value cards by | ||
lottery licensees as a non-exclusive option for use by | ||
individuals 18 years of age or older who purchase tickets for | ||
authorized lottery games in the Internet pilot program. For the | ||
purposes of this study, it is anticipated that the stored value | ||
cards will have, but need not be limited to, the following | ||
characteristics: (1) the cards will be available only to | ||
individuals 18 years of age and older; (2) the cards will be | ||
rechargeable, closed-loop cards that can only be loaded with | ||
cash; (3) the cards will have unique identifying numbers to be | ||
used for on-line play; (4) the cards will have on-line play | ||
subtracted from the card's value; (5) the cards may have | ||
on-line winnings added to them; (6) the cards will be used at | ||
Lottery retailers to cash out winnings of up to $600; and (7) | ||
the cards will meet all technological, programming, and | ||
security requirements mandated by the Department and the | ||
governing bodies of both Mega Millions and Powerball. | ||
To the fullest extent possible, but subject to available | ||
resources, the Department shall ensure that the study evaluates | ||
and analyzes at least the following issues: | ||
(1) economic benefits to the State from Internet | ||
Lottery sales from stored value cards and from resulting | ||
sales taxes; | ||
(2) economic benefits to local governments from sales | ||
taxes generated from Internet Lottery sales through stored | ||
value cards; | ||
(3) economic benefits to Lottery retailers from | ||
Internet Lottery sales and from ancillary retail product | ||
sales in connection with the same; | ||
(4) enhanced player age verification from face-to-face | ||
interaction; | ||
(5) enhanced control of gambling addiction from | ||
face-to-face interaction; | ||
(6) elimination of credit card overspending through | ||
the use of stored value cards and resulting reduced debt | ||
issues; | ||
(7) the feasibility of the utilization of existing | ||
Lottery machines to dispense stored value cards; | ||
(8) the technological, programming, and security | ||
requirements to make stored value cards an appropriate | ||
sales alternative; and | ||
(9) the cost and project time estimates for | ||
implementation, including adaptation of existing Lottery | ||
machines, programming, and technology enhancements and | ||
impact to operations. | ||
The Study Committee shall consist of the Superintendent or | ||
his or her designee; the chief executive officer of the | ||
Lottery's private manager or his or her designee; a | ||
representative appointed by the Governor's Office; 2 | ||
representatives of the lottery licensee community appointed by | ||
the Superintendent; one representative of a statewide | ||
association representing food retailers appointed by the | ||
Superintendent; and one representative of a statewide | ||
association representing retail merchants appointed by the | ||
Superintendent. | ||
Members of the Study Committee shall be appointed within 30 | ||
days after the effective date of this amendatory Act of the | ||
97th General Assembly. No later than 6 months after the | ||
effective date of this amendatory Act of the 97th General | ||
Assembly, the Department shall provide to the members of the | ||
Study Committee the proposed findings and recommendations of | ||
the study in order to solicit input from the Study Committee. | ||
Within 30 calendar days thereafter, the Study Committee shall | ||
convene a meeting of the members to discuss the proposed | ||
findings and recommendations of the study. No later than 15 | ||
calendar days after meeting, the Study Committee shall submit | ||
to the Department any written changes, additions, or | ||
corrections the Study Committee wishes the Department to make | ||
to the study. The Department shall consider the propriety of | ||
and respond to each change, addition, or correction offered by | ||
the Study Committee in the study. The Department shall also set | ||
forth any such change, addition, or correction offered by | ||
members of the Study Committee and the Department's responses | ||
thereto in the appendix to the study. No later than 15 calendar | ||
days after receiving the changes, additions, or corrections | ||
offered by the Study Committee, the Department shall deliver | ||
copies of the final study and appendices, if any, to the | ||
Governor, President of the Senate, Minority Leader of the | ||
Senate, Speaker of the House of Representatives, Minority | ||
Leader of the House of Representatives, and each of the members | ||
of the Study Committee. | ||
(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840, | ||
eff. 12-23-09; 97-464, eff. 10-15-11.) | ||
(20 ILCS 1605/14.4 new) | ||
Sec. 14.4. Investigators. | ||
(a) The Department has the power to appoint investigators | ||
to conduct investigations, searches, seizures, arrests, and | ||
other duties required to enforce the provisions of this Act and | ||
prevent the perpetration of fraud upon the Department or the | ||
public. These investigators have and may exercise all the | ||
powers of peace officers solely for the purpose of ensuring the | ||
integrity of the lottery games operated by the Department. | ||
(b) The Superintendent must authorize to each investigator | ||
employed under this
Section and
to any other employee of the | ||
Department exercising the powers of a peace
officer a
distinct | ||
badge that, on its face, (i) clearly states that the badge is
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authorized
by the
Department and (ii)
contains a unique | ||
identifying number.
No other badge shall be authorized by
the | ||
Department.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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