Bill Amendment: IL SB0513 | 2015-2016 | 99th General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: REVENUE-TECH
Status: 2017-01-10 - Passed Both Houses [SB0513 Detail]
Download: Illinois-2015-SB0513-House_Amendment_002.html
Bill Title: REVENUE-TECH
Status: 2017-01-10 - Passed Both Houses [SB0513 Detail]
Download: Illinois-2015-SB0513-House_Amendment_002.html
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1 | AMENDMENT TO SENATE BILL 513
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2 | AMENDMENT NO. ______. Amend Senate Bill 513, AS AMENDED, by | ||||||
3 | replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Illinois Lottery Law is amended by changing | ||||||
6 | Section 7.12 as follows:
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7 | (20 ILCS 1605/7.12) | ||||||
8 | Sec. 7.12. Internet pilot program. | ||||||
9 | (a) The General Assembly finds that: | ||||||
10 | (1) the consumer market in Illinois has changed since | ||||||
11 | the creation of the Illinois State Lottery in 1974; | ||||||
12 | (2) the Internet has become an integral part of | ||||||
13 | everyday life for a significant number of Illinois | ||||||
14 | residents not only in regards to their professional life, | ||||||
15 | but also in regards to personal business and communication; | ||||||
16 | and |
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1 | (3) the current practices of selling lottery tickets | ||||||
2 | does not appeal to the new form of market participants who | ||||||
3 | prefer to make purchases on the Internet at their own | ||||||
4 | convenience. | ||||||
5 | It is the intent of the General Assembly to create an | ||||||
6 | Internet pilot program for the sale of lottery tickets to | ||||||
7 | capture this new form of market participant. | ||||||
8 | (b) The Department shall create a pilot program that allows | ||||||
9 | an individual 18 years of age or older to purchase lottery | ||||||
10 | tickets or shares on the Internet without using a Lottery | ||||||
11 | retailer with on-line status, as those terms are defined by | ||||||
12 | rule. The Department shall restrict the sale of lottery tickets | ||||||
13 | on the Internet to transactions initiated and received or | ||||||
14 | otherwise made exclusively within the State of Illinois. The | ||||||
15 | Department shall adopt rules necessary for the administration | ||||||
16 | of this program. These rules shall include, among other things, | ||||||
17 | requirements for marketing of the Lottery to infrequent | ||||||
18 | players, as well as limitations on the purchases that may be | ||||||
19 | made through any one individual's lottery account. The | ||||||
20 | provisions of this Act and the rules adopted under this Act | ||||||
21 | shall apply to the sale of lottery tickets or shares under this | ||||||
22 | program. | ||||||
23 | The Department may offer Lotto, Lucky Day Lotto, Mega | ||||||
24 | Millions, Powerball, Pick 3, Pick 4, and other draw games that | ||||||
25 | are offered at retail locations, as well as interactive instant | ||||||
26 | win games, through the Internet program. The private manager |
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1 | shall obtain the Director's approval before providing any draw | ||||||
2 | games or interactive instant win games and must submit the | ||||||
3 | following information with the Director: the rationale for | ||||||
4 | introducing the draw games or interactive instant win games, | ||||||
5 | the consumer research on the target market, and the amount of | ||||||
6 | net profit that is expected. Any games that are approved for | ||||||
7 | sale by Lottery retail licensees are automatically approved for | ||||||
8 | sale on the Internet. | ||||||
9 | Before beginning the pilot program, the Department of the | ||||||
10 | Lottery must submit a request to the United States Department | ||||||
11 | of Justice for review of the State's plan to implement a pilot | ||||||
12 | program for the sale of lottery tickets on the Internet and its | ||||||
13 | propriety under federal law. The Department shall implement the | ||||||
14 | Internet pilot program only if the Department of Justice does | ||||||
15 | not object to the implementation of the program within a | ||||||
16 | reasonable period of time after its review. | ||||||
17 | The Department is obligated to implement the pilot program | ||||||
18 | set forth in this Section and Sections 7.15 and 7.16 only at | ||||||
19 | such time, and to such extent, that the Department of Justice | ||||||
20 | does not object to the implementation of the program within a | ||||||
21 | reasonable period of time after its review. While the Illinois | ||||||
22 | Lottery may only offer Lotto, Mega Millions, and Powerball | ||||||
23 | games through the pilot program, the Department shall request | ||||||
24 | review from the federal Department of Justice for the Illinois | ||||||
25 | Lottery to sell lottery tickets on the Internet on behalf of | ||||||
26 | the State of Illinois that are not limited to just these games. |
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1 | The Department shall authorize the private manager to | ||||||
2 | implement and administer the program pursuant to the management | ||||||
3 | agreement entered into under Section 9.1 and in a manner | ||||||
4 | consistent with the provisions of this Section. If a private | ||||||
5 | manager has not been selected pursuant to Section 9.1 at the | ||||||
6 | time the Department is obligated to implement the pilot program | ||||||
7 | or has been terminated pursuant to Section 9.1 , then the | ||||||
8 | Department shall not proceed with offering Lucky Day Lotto, | ||||||
9 | Pick 3, Pick 4, other draw games, or interactive instant win | ||||||
10 | games under the pilot program until after the selection of a | ||||||
11 | the private manager, at which time the Department shall | ||||||
12 | authorize the private manager to implement and administer the | ||||||
13 | program pursuant to the management agreement entered into under | ||||||
14 | Section 9.1 and in a manner consistent with the provisions of | ||||||
15 | this Section. The Department may continue offering Lotto, Mega | ||||||
16 | Millions, and Powerball prior to the selection of a private | ||||||
17 | manager. | ||||||
18 | The pilot program shall last for not less than 36 months, | ||||||
19 | but not more than 48 months from the date of its initial | ||||||
20 | operation. | ||||||
21 | Nothing in this Section shall be construed as prohibiting | ||||||
22 | the Department from implementing and operating a website portal | ||||||
23 | whereby individuals who are 18 years of age or older with an | ||||||
24 | Illinois mailing address may apply to purchase lottery tickets | ||||||
25 | via subscription. Nothing in this Section shall also be | ||||||
26 | construed as prohibiting the sale of Lotto, Mega Millions, and |
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1 | Powerball , Lucky Day Lotto, Pick 3, or Pick 4 games by a | ||||||
2 | lottery licensee pursuant to the Department's rules. | ||||||
3 | (c) (Blank). There is created the Internet Lottery Study | ||||||
4 | Committee as an advisory body within the Department. The | ||||||
5 | Department shall conduct a study to determine the impact of the | ||||||
6 | Internet pilot program on lottery licensees. The Department | ||||||
7 | shall also determine the feasibility of the sale of stored | ||||||
8 | value cards by lottery licensees as a non-exclusive option for | ||||||
9 | use by individuals 18 years of age or older who purchase | ||||||
10 | tickets for authorized lottery games in the Internet pilot | ||||||
11 | program. For the purposes of this study, it is anticipated that | ||||||
12 | the stored value cards will have, but need not be limited to, | ||||||
13 | the following characteristics: (1) the cards will be available | ||||||
14 | only to individuals 18 years of age and older; (2) the cards | ||||||
15 | will be rechargeable, closed-loop cards that can only be loaded | ||||||
16 | with cash; (3) the cards will have unique identifying numbers | ||||||
17 | to be used for on-line play; (4) the cards will have on-line | ||||||
18 | play subtracted from the card's value; (5) the cards may have | ||||||
19 | on-line winnings added to them; (6) the cards will be used at | ||||||
20 | Lottery retailers to cash out winnings of up to $600; and (7) | ||||||
21 | the cards will meet all technological, programming, and | ||||||
22 | security requirements mandated by the Department and the | ||||||
23 | governing bodies of both Mega Millions and Powerball. | ||||||
24 | To the fullest extent possible, but subject to available | ||||||
25 | resources, the Department shall ensure that the study evaluates | ||||||
26 | and analyzes at least the following issues: |
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1 | (1) economic benefits to the State from Internet | ||||||
2 | Lottery sales from stored value cards and from resulting | ||||||
3 | sales taxes; | ||||||
4 | (2) economic benefits to local governments from sales | ||||||
5 | taxes generated from Internet Lottery sales through stored | ||||||
6 | value cards; | ||||||
7 | (3) economic benefits to Lottery retailers from | ||||||
8 | Internet Lottery sales and from ancillary retail product | ||||||
9 | sales in connection with the same; | ||||||
10 | (4) enhanced player age verification from face-to-face | ||||||
11 | interaction; | ||||||
12 | (5) enhanced control of gambling addiction from | ||||||
13 | face-to-face interaction; | ||||||
14 | (6) elimination of credit card overspending through | ||||||
15 | the use of stored value cards and resulting reduced debt | ||||||
16 | issues; | ||||||
17 | (7) the feasibility of the utilization of existing | ||||||
18 | Lottery machines to dispense stored value cards; | ||||||
19 | (8) the technological, programming, and security | ||||||
20 | requirements to make stored value cards an appropriate | ||||||
21 | sales alternative; and | ||||||
22 | (9) the cost and project time estimates for | ||||||
23 | implementation, including adaptation of existing Lottery | ||||||
24 | machines, programming, and technology enhancements and | ||||||
25 | impact to operations. | ||||||
26 | The Study Committee shall consist of the Director or his or |
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1 | her designee; the chief executive officer of the Lottery's | ||||||
2 | private manager or his or her designee; a representative | ||||||
3 | appointed by the Governor's Office; 2 representatives of the | ||||||
4 | lottery licensee community appointed by the Director; one | ||||||
5 | representative of a statewide association representing food | ||||||
6 | retailers appointed by the Director; and one representative of | ||||||
7 | a statewide association representing retail merchants | ||||||
8 | appointed by the Director. | ||||||
9 | Members of the Study Committee shall be appointed within 30 | ||||||
10 | days after the effective date of this amendatory Act of the | ||||||
11 | 97th General Assembly. No later than 6 months after the | ||||||
12 | effective date of this amendatory Act of the 97th General | ||||||
13 | Assembly, the Department shall provide to the members of the | ||||||
14 | Study Committee the proposed findings and recommendations of | ||||||
15 | the study in order to solicit input from the Study Committee. | ||||||
16 | Within 30 calendar days thereafter, the Study Committee shall | ||||||
17 | convene a meeting of the members to discuss the proposed | ||||||
18 | findings and recommendations of the study. No later than 15 | ||||||
19 | calendar days after meeting, the Study Committee shall submit | ||||||
20 | to the Department any written changes, additions, or | ||||||
21 | corrections the Study Committee wishes the Department to make | ||||||
22 | to the study. The Department shall consider the propriety of | ||||||
23 | and respond to each change, addition, or correction offered by | ||||||
24 | the Study Committee in the study. The Department shall also set | ||||||
25 | forth any such change, addition, or correction offered by | ||||||
26 | members of the Study Committee and the Department's responses |
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1 | thereto in the appendix to the study. No later than 15 calendar | ||||||
2 | days after receiving the changes, additions, or corrections | ||||||
3 | offered by the Study Committee, the Department shall deliver | ||||||
4 | copies of the final study and appendices, if any, to the | ||||||
5 | Governor, President of the Senate, Minority Leader of the | ||||||
6 | Senate, Speaker of the House of Representatives, Minority | ||||||
7 | Leader of the House of Representatives, and each of the members | ||||||
8 | of the Study Committee. | ||||||
9 | (d) The private manager or an entity affiliated with the | ||||||
10 | private manager may directly provide either, but not both, of | ||||||
11 | the following: (i) lottery retailer terminals and services or | ||||||
12 | (ii) internet lottery games, including related system | ||||||
13 | infrastructure and management services. The private manager is | ||||||
14 | authorized to enter into agreements with any person or entity | ||||||
15 | to provide either of these functions, subject to the approval | ||||||
16 | of the Department. The Department and the private manager shall | ||||||
17 | provide the necessary interface access to any person or entity | ||||||
18 | that is selected to offer for purchase lottery tickets or | ||||||
19 | shares on the Internet. | ||||||
20 | (e) Notwithstanding any provision of law to the contrary, | ||||||
21 | this amendatory Act of the 99th General Assembly does not | ||||||
22 | authorize the Department to offer a draw game or interactive | ||||||
23 | instant win game that is substantially similar to any game that | ||||||
24 | is contained in the Illinois Gaming Board Administrator's list | ||||||
25 | of approved games pursuant to 86 Ill. Adm. Code 3000.605 on the | ||||||
26 | effective date of this amendatory Act of the 99th General |
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1 | Assembly. | ||||||
2 | (f) No later than December 31 of each year, the private | ||||||
3 | manager shall prepare and submit an annual report, covering the | ||||||
4 | previous fiscal year, to the General Assembly regarding the | ||||||
5 | performance of the Internet program and the Department. This | ||||||
6 | report shall include, but is not limited to, the following: | ||||||
7 | (1) the total number of Internet sales and profits; | ||||||
8 | (2) the total number of subscribers, along with | ||||||
9 | information concerning the age, gender, and ethnicity of | ||||||
10 | subscribers; | ||||||
11 | (3) the average spend per Internet session; | ||||||
12 | (4) the effectiveness of age and geographic controls; | ||||||
13 | (5) the impact of the Internet program on illegal | ||||||
14 | gambling and an evaluation of Internet sales on problem | ||||||
15 | gambling; | ||||||
16 | (6) the total number of transfers in and out of State | ||||||
17 | funds; and | ||||||
18 | (7) the total number of vendors, employees, and other | ||||||
19 | personnel utilized by the Department and private manager. | ||||||
20 | (Source: P.A. 97-464, eff. 10-15-11; 97-1121, eff. 8-27-12; | ||||||
21 | 98-499, eff. 8-16-13.)
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22 | Section 99. Effective date. This Act takes effect upon | ||||||
23 | becoming law.".
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