HB0414 Summary

• Amends the Illinois Lottery Law to establish a private manager for the Illinois Lottery through a competitive request for qualifications process, with the Governor selecting the private manager by September 15, 2010.

• Requires the management agreement to include a term not exceeding 10 years, with provisions ensuring the Department maintains actual control over significant business decisions, has access to all operational information, and retains ownership of all lottery trademarks and intellectual property.

• Mandates the private manager implement comprehensive security and internal audit programs, a program to curb compulsive gambling, and provides compensation through service fees and performance-based bonuses tied to lottery revenue growth.

• Requires at least 20% of the private manager's contract costs for goods and services be awarded to minority-owned, female-owned, or disability-owned businesses as defined by state law.

• Establishes that all lottery proceeds be distributed first to prize payments and retailer bonuses, second to operational costs and private manager payments, third to monthly transfers to the Common School Fund at fiscal year 2009 levels adjusted for inflation, and finally remaining proceeds to the Capital Projects Fund.