SB1564 104TH GENERAL ASSEMBLY

LRB104 08185 LNS 18235 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB1564

Introduced 2/4/2025, by Sen. Paul Faraci

SYNOPSIS AS INTRODUCED:

20 ILCS 1305/10-80 new
20 ILCS 1605/9.3
20 ILCS 1605/20	from Ch. 120, par. 1170
20 ILCS 1605/21.18 new
30 ILCS 105/5.1030 new

Amends the Illinois Lottery Law. Provides that if a scratch-off game is discontinued, then the Department of the Lottery shall offer a special instant scratch-off game for the benefit of the Illinois Developmental Disabilities Services Scratch-Off Fund for developmental disabilities services under the Independent Service Coordination agencies. Provides that the game shall commence as soon practical after the discontinuation and shall operate for 5 years. Requires that the net revenue from the developmental disabilities services scratch-off game be deposited into the Illinois Developmental Disabilities Services Scratch-Off Fund. Allows the Department to adopt rules to implement the provisions. Creates the Illinois Developmental Disabilities Services Scratch-Off Fund. Makes conforming changes in the Department of Human Services Act and the State Finance Act. Effective immediately.

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Department of Human Services Act is amended by adding Section 10-80 as follows:

(20 ILCS 1305/10-80 new)

Sec. 10-80. Administration of the Illinois Developmental Disabilities Services Scratch-Off Fund. The Department of Human Services shall administer the Illinois Developmental Disabilities Services Scratch-off Fund. The Department shall pass all of the moneys deposited in the Fund as grants for services provided by the Independent Service Coordination agencies as defined in Section 10 of the Disabilities Services Act of 2003.

Section 10. The Illinois Lottery Law is amended by changing Sections 9.3 and 20 and by adding Section 21.18 as follows:

(20 ILCS 1605/9.3)

Sec. 9.3. Expenditure and distribution of lottery proceeds.

(a) Beginning July 1, 2022, except as provided in Sections 21.4, 21.5, 21.6, 21.7, 21.8, 21.9, 21.10, 21.11, 21.13, 21.15, and 21.16, and 21.18 of this Law and Section 25-70 of the Sports Wagering Act, the Department shall distribute all proceeds of lottery tickets and shares sold in the following priority and manner:

(1) The payment of prizes and retailer bonuses.

(2) The payment of costs incurred in the operation and administration of the Lottery, including the payment of sums due to the private manager under the management agreement with the Department and including costs of administering the Lottery sports wagering program pursuant to Section 25-70 of the Sports Wagering Act.

(3) On the last day of each month or as soon thereafter as possible, the State Comptroller shall direct and the State Treasurer shall transfer from the State Lottery Fund to the Common School Fund the Department's estimate of net lottery proceeds.

(4) If an amount in excess of the annual net lottery proceeds is transferred for a fiscal year, then the Department shall offset the monthly transfers of estimated net lottery proceeds during the following fiscal year by that excess amount. If an amount less than the annual net lottery proceeds is transferred for a fiscal year, then after the related annual fiscal year audit is completed following such fiscal year, the Department shall direct the deposit of any remaining annual net lottery proceeds from such fiscal year, subject to payments under paragraphs (1) and (2), into the Common School Fund as soon thereafter as possible.

(b) The net lottery proceeds shall be determined by deducting from total annual lottery proceeds the expenditures required by paragraphs (1) and (2) of subsection (a). The total annual lottery proceeds and annual net lottery proceeds shall be determined according to generally accepted accounting principles for governmental entities and verified by an annual fiscal year audit.

(Source: P.A. 102-699, eff. 4-19-22; 103-381, eff. 7-28-23.)

(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 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.

(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.

(n) The receipt and distribution of moneys under Section 21.18 of this Law shall be accordance with Section 21.18.

(Source: P.A. 102-16, eff. 6-17-21; 103-381, eff. 7-28-23.)

(20 ILCS 1605/21.18 new)

Sec. 21.18. Scratch-off for developmental disabilities services.

(a) If a scratch-off game is discontinued pursuant to Section 21.4, then the Department shall offer a special instant scratch-off game for the benefit of the Illinois Developmental Disabilities Services Scratch-Off Fund for developmental disabilities services under the Independent Service Coordination agencies. The game shall commence as soon practical after the discontinuation, at the discretion of the Director, and shall operate for 5 years. The operation of the game shall be governed by this Law and any rules adopted by the Department.

(b) The net revenue from the developmental disabilities services scratch-off game shall be deposited into the Illinois Developmental Disabilities Services Scratch-Off Fund. Moneys received for the purposes of this Section, including, without limitation, net revenue from the special instant scratch-off game and from gifts, grants, and awards from any public or private entity, must be deposited into the Fund. For the purposes of this subsection, "net revenue" means the total amount for which tickets have been sold less the sum of the amount paid out in the prizes and the actual administrative expenses of the Department solely related to the scratch-off game under this Section.

(c) During the time that tickets are sold for the developmental disabilities research, support, education, and awareness scratch-off game, the Department shall not unreasonably diminish the efforts devoted to marketing any other instant scratch-off lottery game.

(d) The Department may adopt any rules necessary to implement and administer the provisions of this Section.

Section 15. The State Finance Act is amended by adding Section 5.1030 as follows:

(30 ILCS 105/5.1030 new)

Sec. 5.1030. The Illinois Developmental Disabilities Services Scratch-Off Fund.

Section 99. Effective date. This Act takes effect upon becoming law.