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HB 2674

State government; creating the Statewide Official Compensation Commission; membership; meetings; public official salaries; effective dates.

2025 Regular Session Introduced by Kyle Hilbert and 1 co-sponsor

HB 2674, as amended, overhauls Illinois Lottery Law: shifts private manager duties to the state by FY2029, updates governance, contracting, prize payments, and operational rules.

Becomes law without Governor's signature 05/14/2025
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WeVote Research Nonpartisan
Bill Summary · HB 2674

Summary — HB 2674 (DEPT OF THE LOTTERY — VARIOUS)

Overview / Purpose

HB 2674 was introduced Feb 11, 2025. The bill originally sought to prohibit preauthorization and step-edit requirements for medications to treat opioid use disorder (an Arizona-focused AHCCCS amendment). A substantive House Amendment (House Amendment 001) replaced the original text with extensive amendments to the Illinois Lottery Law (20 ILCS 1605), changing governance, operations, and financial procedures for the Department of the Lottery. The substituted (amended) bill then proceeded through legislative action, was passed and signed into law.

Because the amendment replaced the bill’s text, two distinct policy tracks appear in the record:
- The original introduced provision (Arizona): prohibition on preauthorization for OUD medications under AHCCCS.
- The amended/enrolled act (Illinois): multiple changes to the Illinois Lottery Law, including a scheduled transition of private-manager responsibilities back to the State.

Below are concise descriptions of both the original and the final amended content.

Original (Introduced) Provision — Arizona (brief)

  • Adds A.R.S. § 36-2907.16 to AHCCCS law.
  • Prohibits the Administration and its contractors, beginning Oct 1, 2026, from imposing any preauthorization or step-edit requirement for any FDA‑approved medication for the treatment of opioid use disorder.
  • Primary effect: removes prior utilization-management barriers (prior auth/step therapy) for OUD medications for members covered by AHCCCS; affects AHCCCS administration and managed care contractors, prescribers, and beneficiaries.

Enacted/Amended Text — Illinois Lottery Law (major points)

House Amendment 001 replaces the bill with broad amendments to the Illinois Lottery Law (20 ILCS 1605). Key provisions include:
- Transition schedule: beginning Fiscal Year 2027 the Department of the Lottery shall begin transitioning all roles and responsibilities from the private manager to the State; transition to be completed by end of Fiscal Year 2029. The Department may assume or extend contracts held by the private manager and increase headcount as needed.
- Management agreement limits: clarifies “management agreement” and states a performance-based bonus to a private manager may be no more than 5% of Lottery profits, while preserving Department control over significant business decisions.
- Availability of game materials: requires written play instructions to be made available on the Department’s public website or by request (removes or modifies distribution via sales agents and certain Illinois Register publication requirements).
- Financial and prize administration changes: adjusts how net proceeds and agent-level prize payments are calculated (e.g., clarifies treatment of prizes of $600), expands Department authority to pay prizes from a separate account (removing some prior dollar limits), and shifts contracting authority for financial services from the State Treasurer (with consent) to the Department in certain circumstances.
- Board and governance edits: updates Lottery Control Board provisions (appointments, meetings, quorum, compensation) and other administrative, procurement, and operational provisions throughout Sections 2–27 of the Act.
- Miscellaneous: removes or alters some deadlines/requirements related to private managers and preaudit/Comptroller preaudit provisions.

Who is affected

  • If the original Arizona provision had remained: AHCCCS members, providers, managed care organizations and contractors, and state AHCCCS administration.
  • With the enacted Illinois amendments: Department of the Lottery, its private manager (current contractor), lottery retailers/agents, vendors/contractors, State Treasurer’s previous administrative roles, and beneficiaries of Lottery net proceeds (Common School Fund). Fiscal implications for State operations and staffing during the FY2027–FY2029 transition.

Legislative status & timeline

  • Passed legislature: 2025-05-26 (multiple procedural steps recorded).
  • Sent to Governor: 2025-05-28; Signed by Governor: 2025-06-20.
  • Effective date: 2025-09-01.
  • Companion bill: SB 2414.
  • Note: The House Amendment substantially replaced the original introduced text; the enacted provisions reflect the Illinois Lottery Law amendments rather than the initial AHCCCS preauthorization prohibition language.

Compiled from official sources — confirm details with the bill’s official record.

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