S605-2011 Actions

• Mar 12, 2012: COMMITTEE DISCHARGED AND COMMITTED TO RULES
• Mar 8, 2012: NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
• Jan 4, 2012: REFERRED TO RACING, GAMING AND WAGERING
• Jan 5, 2011: REFERRED TO RACING, GAMING AND WAGERING

S605-2011 Memo

BILL NUMBER:S605

TITLE OF BILL:
An act to amend the tax law, in relation to payment of winning lottery
tickets

PURPOSE OR GENERAL IDEA OF BILL:
The  purpose  of  the  bill is to require New York State lottery sales
agents to pay any valid winning lottery ticket valued at  six  hundred
dollars  or  less within one year from the date of the drawing or from
the close of the game.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1614 of the tax law is amended by chapter 166 of the  laws  of
1991,  subdivision  (a) is amended by chapter 170 of the laws of 1994,
is amended  to  read  as  follows:  Notwithstanding  any  inconsistent
provision  of  any  other law, rule or regulation, all winning tickets
valued at six hundred dollars or less presented for payment within the
expiration of a one-year time period from the date of the  drawing  or
from  the  close of the game in which a prize was won shall be paid by
the lottery sales agent presented with such ticket.

JUSTIFICATION:
Currently, lottery sales agents that  are  presented  with  a  winning
ticket  valued  under  six hundred dollars will only pay the winner if
the ticket is presented within 45 days of the drawing or close of  the
game.  Winning  tickets more than 45 days old must be presented either
in person or via mail to a NYS lottery regional  office  for  payment.
This  seems to place an unfair burden on lottery players. Many tickets
may have a small winning value like two  dollars  or  a  free  ticket.
Under  the current system, players would have to pay for postage which
may constitute 25% or more of the actual prize. The other  alternative
may  cost  even  more  by  taking  transportation to an actual lottery
regional office. Lottery tickets are only valid for one year therefore
the local lottery sales  agents  should  cash  those  winning  tickets
during the entire one year term.

PRIOR LEGISLATIVE HISTORY:
2010:  S.8455 (Rules)

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This bill shall take effect on the thirtieth day after it shall become
law.

S605-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          605
 2011-2012 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 5, 2011
 
 Introduced  by  Sen. PERALTA -- read twice and ordered printed, and when
 printed to be committed to the Committee on Racing, Gaming and  Wager
 ing
 AN  ACT  to amend the tax law, in relation to payment of winning lottery
 tickets
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section  1. 

Section 1614 of the tax law, as amended by chapter 166 of
 the laws of 1991, subdivision a as amended by chapter 170 of the laws of
 1994, is amended to read as follows:

 

S 1614. Unclaimed and abandoned prize money. a. No prize  claim  shall
 be  valid  if  submitted  to  the division following the expiration of a
 one-year time period from the date of the drawing or from the  close  of
 the  game in which a prize was won, and the person otherwise entitled to
 such prize shall forfeit any claim or entitlement to such prize  moneys.
 Unclaimed  prize  money, plus interest earned thereon, shall be retained
 in the lottery prize account to be used for payment of special lotto  or
 supplemental  lotto  prizes offered pursuant to the plan or plans speci
 fied in this article, or for promotional purposes  to  supplement  other
 games  on  an  occasional  basis  not to exceed sixteen weeks within any
 twelve month period pursuant to the plan  or  plans  specified  in  this
 article.
 NOTWITHSTANDING  ANY  INCONSISTENT PROVISION OF ANY OTHER LAW, RULE OR
 REGULATION, ALL WINNING TICKETS VALUED AT SIX HUNDRED  DOLLARS  OR  LESS
 PRESENTED  FOR  PAYMENT  WITHIN THE EXPIRATION OF A ONE-YEAR TIME PERIOD
 FROM THE DATE OF THE DRAWING OR FROM THE CLOSE OF THE GAME  IN  WHICH  A
 PRIZE  WAS  WON  SHALL BE PAID BY THE LOTTERY SALES AGENT PRESENTED WITH
 SUCH TICKET.
 In the event that the director proposes to change any plan for the use
 of unclaimed prize funds or in the event the  director  intends  to  use
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD03356-01-1
 
       S. 605                              2
 funds  in  a  game  other  than the game from which such unclaimed prize
 funds were derived, the director of the budget, the chairperson  of  the
 senate  finance  committee, and the chairperson of the assembly ways and
 means  committee  shall  be notified in writing separately detailing the
 proposed changes to any plan prior to the implementation of the changes.
 b. The division may determine that a prize has been abandoned whenever
 more than eighteen months have elapsed since a prize payment  check  was
 mailed  to  the last known address of the claimant and either such check
 has been returned undelivered by the United States  postal  service  and
 the claimant cannot be located or such check has not been returned unde
 livered  and has not been presented for payment. Any prize so determined
 to have been abandoned shall be paid to the state  comptroller  pursuant
 to section thirteen hundred fifteen of the abandoned property law.
 

S  2.  This  act shall take effect on the thirtieth day after it shall
 have become a law.

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