Bill Text: IL HB4346 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: Amends the Illinois Lottery Law. Makes the Internet pilot program, which allows the sale of lottery tickets over the Internet, a permanent program. Removes provisions concerning the Internet Lottery Study Committee. Effective immediately.

Sponsorship: Slight Partisan Bill (Democrat 2-1)

Status: (Introduced - Dead) 2016-04-08 - Rule 19(a) / Re-referred to Rules Committee [HB4346 Detail]

Download: Illinois-2015-HB4346-Introduced.html

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99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB4346 Introduced , by Rep. Ed Sullivan SYNOPSIS AS INTRODUCED:
20 ILCS 1605/7.12
Amends the Illinois Lottery Law. Makes the Internet pilot program, which allows the sale of lottery tickets over the Internet, a permanent program. Removes provisions concerning the Internet Lottery Study Committee. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Lottery Law is amended by changing
Section 7.12 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

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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

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reasonable period of time after its review. While the Illinois
Lottery may only offer Lotto, 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

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construed as prohibiting the sale of Lotto, Mega Millions, and
Powerball games by a lottery licensee pursuant to the
Department's rules.
(c) (Blank). 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

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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.

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The Study Committee shall consist of the Director 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 Director; one
representative of a statewide association representing food
retailers appointed by the Director; and one representative of
a statewide association representing retail merchants
appointed by the Director.
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

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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. 97-464, eff. 10-15-11; 97-1121, eff. 8-27-12;
98-499, eff. 8-16-13.)
Section 99. Effective date. This Act takes effect upon
becoming law.