S55-2013 Actions

• Jan 9, 2013: REFERRED TO RACING, GAMING AND WAGERING

S55-2013 Memo

BILL NUMBER:S55

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 2.5% 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:
2011-12: S.605
2010:    S.8455 (Rules)

FISCAL IMPLICATIONS:
None.

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

S55-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                     55

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  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. Subdivision a of section 1614 of the tax law, as amended by
  chapter 170 of the laws of 1994, is amended to read as follows:

    a.  No prize claim shall be valid if submitted to the division follow-
  ing the expiration of a one-year time period from the date of the  draw-
  ing  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 enti-
  tlement 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 specified in this article, or for promo-
  tional 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
  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

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD01092-01-3

 S. 55                               2

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