Bill Text: IL HB5230 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Lottery Law. Provides that the State Lottery Fund shall receive from the sale of lottery tickets or shares consisting of the net of commissions and fees representing those expenses that are directly proportionate to the sale of tickets or shares at the agent location and prizes of $600 or less (rather than less than $600) which have been validly paid at the agent level. Makes a conforming change. Provides that the Department of Lottery may pay any prize (rather than prizes up to $25,000) from funds held by the Department in an account separate and apart from all public moneys of the State. Removes provisions allowing moneys in the account to be deposited by the Department into the Public Treasurers' Investment Pool or used to pay amounts to deferred prize winners. Allows the Department to contract (rather than the State Treasurer with the consent of the Director of the Lottery) with any person or corporation, including, without limitation, a bank, banking house, trust company or investment banking firm, to perform such financial functions, activities, or services in connection with operation of the lottery. Allows, with the consent of the Director, the State Treasurer to act as an agent of the Department to perform the financial functions as the Director may prescribe. Removes language requiring the Director to prepare and send to the State Comptroller vouchers requesting payment from the Deferred Lottery Prize Winners Trust Fund to deferred prize winners.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB5230 Detail]

Download: Illinois-2023-HB5230-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5230 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED:
20 ILCS 1605/20 from Ch. 120, par. 1170
20 ILCS 1605/20.1 from Ch. 120, par. 1170.1
20 ILCS 1605/24 from Ch. 120, par. 1174
20 ILCS 1605/27 from Ch. 120, par. 1177
Amends the Illinois Lottery Law. Provides that the State Lottery Fund shall receive from the sale of lottery tickets or shares consisting of the net of commissions and fees representing those expenses that are directly proportionate to the sale of tickets or shares at the agent location and prizes of $600 or less (rather than less than $600) which have been validly paid at the agent level. Makes a conforming change. Provides that the Department of Lottery may pay any prize (rather than prizes up to $25,000) from funds held by the Department in an account separate and apart from all public moneys of the State. Removes provisions allowing moneys in the account to be deposited by the Department into the Public Treasurers' Investment Pool or used to pay amounts to deferred prize winners. Allows the Department to contract (rather than the State Treasurer with the consent of the Director of the Lottery) with any person or corporation, including, without limitation, a bank, banking house, trust company or investment banking firm, to perform such financial functions, activities, or services in connection with operation of the lottery. Allows, with the consent of the Director, the State Treasurer to act as an agent of the Department to perform the financial functions as the Director may prescribe. Removes language requiring the Director to prepare and send to the State Comptroller vouchers requesting payment from the Deferred Lottery Prize Winners Trust Fund to deferred prize winners.
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A BILL FOR
HB5230 LRB103 38853 AWJ 68990 b
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
Sections 20, 20.1, 24, and 27 as follows:
(20 ILCS 1605/20) (from Ch. 120, par. 1170)
Sec. 20. State Lottery Fund.
(a) There is created in the State Treasury a special fund
to be known as the State Lottery Fund. Such fund shall consist
of all revenues received from (1) the sale of lottery tickets
or shares, (net of commissions, fees representing those
expenses that are directly proportionate to the sale of
tickets or shares at the agent location, and prizes of less
than $600 or less which have been validly paid at the agent
level), (2) application fees, and (3) all other sources
including moneys credited or transferred thereto from any
other fund or source pursuant to law. Interest earnings of the
State Lottery Fund shall be credited to the Common School
Fund.
(a-5) The receipt and distribution of moneys under Section
21.4 of this Act shall be in accordance with Section 21.4.
(b) The receipt and distribution of moneys under Section
21.5 of this Law shall be in accordance with Section 21.5.

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(c) The receipt and distribution of moneys under Section
21.6 of this Law shall be in accordance with Section 21.6.
(d) The receipt and distribution of moneys under Section
21.7 of this Law shall be in accordance with Section 21.7.
(e) The receipt and distribution of moneys under Section
21.8 of this Law shall be in accordance with Section 21.8.
(f) The receipt and distribution of moneys under Section
21.9 of this Law shall be in accordance with Section 21.9.
(g) The receipt and distribution of moneys under Section
21.10 of this Law shall be in accordance with Section 21.10.
(h) The receipt and distribution of moneys under Section
21.11 of this Law shall be in accordance with Section 21.11.
(i) (Blank).
(j) The receipt and distribution of moneys under Section
21.13 of this Law shall be in accordance with Section 21.13.
(k) The receipt and distribution of moneys under Section
25-70 of the Sports Wagering Act shall be in accordance with
Section 25-70 of the Sports Wagering Act.
(l) The receipt and distribution of moneys under Section
21.15 of this Law shall be in accordance with Section 21.15.
(m) The receipt and distribution of moneys under Section
21.16 of this Law shall be in accordance with Section 21.16.
(Source: P.A. 102-16, eff. 6-17-21; 103-381, eff. 7-28-23.)
(20 ILCS 1605/20.1) (from Ch. 120, par. 1170.1)
Sec. 20.1. Department account.

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(a) The Department is authorized to pay validated prizes
up to $25,000 from funds held by the Department in an account
separate and apart from all public moneys of the State. Moneys
in this account shall be administered by the Director
exclusively for the purposes of issuing payments to prize
winners authorized by this Section. Moneys in this account
shall be deposited by the Department into the Public
Treasurers' Investment Pool established under Section 17 of
the State Treasurer Act. The Department shall submit vouchers
from time to time as needed for reimbursement of this account
from moneys appropriated for prizes from the State Lottery
Fund. Investment income earned from this account shall be
deposited monthly by the Department into the Common School
Fund. The Department shall file quarterly fiscal reports
specifying the activity of this account as required under
Section 16 of the State Comptroller Act, and shall file
quarterly with the General Assembly, the Auditor General, the
Comptroller, and the State Treasurer a report indicating the
costs associated with this activity.
(b) The Department is authorized to enter into an
interagency agreement with the Office of the Comptroller or
any other State agency to establish responsibilities, duties,
and procedures for complying with the Comptroller's Offset
System under Section 10.05 of the State Comptroller Act. All
federal and State tax reporting and withholding requirements
relating to prize winners under this Section shall be the

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responsibility of the Department. Moneys from this account may
not be used to pay amounts to deferred prize winners. Moneys
may not be transferred from the State Lottery Fund to this
account for payment of prizes under this Section until
procedures are implemented to comply with the Comptroller's
Offset System and sufficient internal controls are in place to
validate prizes.
(Source: P.A. 97-464, eff. 10-15-11; 98-499, eff. 8-16-13.)
(20 ILCS 1605/24) (from Ch. 120, par. 1174)
Sec. 24. The State Comptroller shall conduct a preaudit of
all accounts and transactions of the Department in connection
with the operation of the State Lottery under the State
Comptroller Act, excluding payments issued by the Department
for prizes of $25,000 or less.
The Auditor General or a certified public accountant firm
appointed by him shall conduct an annual post-audit of all
accounts and transactions of the Department in connection with
the operation of the State Lottery and other special post
audits as the Auditor General, the Legislative Audit
Commission, or the General Assembly deems necessary. The
annual post-audits shall include payments made by lottery
sales agents of prizes of less than $600 or less authorized
under Section 20, and payments made by the Department of
prizes up to $25,000 authorized under Section 20.1. The
Auditor General or his agent conducting an audit under this

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Act shall have access and authority to examine any and all
records of the Department or the Board, its distributing
agents and its licensees.
(Source: P.A. 94-776, eff. 5-19-06.)
(20 ILCS 1605/27) (from Ch. 120, par. 1177)
Sec. 27. (a) The Department may State Treasurer may, with
the consent of the Director, contract with any person or
corporation, including, without limitation, a bank, banking
house, trust company or investment banking firm, to perform
such financial functions, activities or services in connection
with operation of the lottery. The State Treasurer may, with
the consent of the Director, act as an agent of the Department
to perform the financial functions as the Director may
prescribe as the State Treasurer and the Director may
prescribe.
(b) All proceeds from investments made pursuant to
contracts executed by the Department or the State Treasurer,
with the consent of the Director, to perform financial
functions, activities or services in connection with operation
of the lottery, shall be deposited and held by the State
Treasurer as ex-officio custodian thereof, separate and apart
from all public money or funds of this State in a special trust
fund outside the State treasury. Such trust fund shall be
known as the "Deferred Lottery Prize Winners Trust Fund", and
shall be administered by the Director.

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The Director shall, at such times and in such amounts as
shall be necessary, prepare and send to the State Comptroller
vouchers requesting payment from the Deferred Lottery Prize
Winners Trust Fund to deferred prize winners, in a manner that
will insure the timely payment of such amounts owed.
This Act shall constitute an irrevocable appropriation of
all amounts necessary for that purpose, and the irrevocable
and continuing authority for and direction to the Director and
the State Treasurer to make the necessary payments out of such
trust fund for that purpose.
(c) Moneys invested pursuant to subsection (a) of this
Section may be invested only in bonds, notes, certificates of
indebtedness, treasury bills, or other securities constituting
direct obligations of the United States of America and all
securities or obligations the prompt payment of principal and
interest of which is guaranteed by a pledge of the full faith
and credit of the United States of America. Interest earnings
on moneys in the Deferred Lottery Prize Winners Trust Fund
shall remain in such fund and be used to pay the winners of
lottery prizes deferred as to payment until such obligations
are discharged. Proceeds from bonds purchased and interest
accumulated as a result of a grand prize multi-state game
ticket that goes unclaimed will be transferred after the
termination of the relevant claim period directly from the
lottery's Deferred Lottery Prize Winners Trust Fund to each
respective multi-state partner state according to its

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