SB1311 Summary

• Governor must select a private manager for the Illinois Lottery by September 15, 2010 through a competitive request for qualifications process, with at least 2 finalists selected by August 9, 2010.

• Private manager agreement cannot exceed 10 years and must include provisions ensuring the Department maintains control over significant business decisions, has access to all operational information, and retains ownership of lottery trademarks and intellectual property.

• Private manager compensation may include a base fee and performance-based bonuses tied to revenue growth, with encouragement that at least 20% of goods and services contracts be awarded to minority-owned, female-owned, or disability-owned businesses.

• All lottery proceeds are distributed first to prize payments and retailer bonuses, second to operational costs including private manager compensation, third to the Common School Fund (adjusted for inflation based on fiscal year 2009 baseline), and fourth any remaining proceeds to the Capital Projects Fund with adjustments for prior year variances beginning in fiscal year 2017.

• Department must provide quarterly reports to the Governor and General Assembly on private manager activities, with complete investigations conducted in years 3, 7, and 10 at the private manager's expense; existing lottery contracts must be terminated or incorporated according to a mutually agreed transition timeline.