CODING: Words stricken are deletions; words underlined are additions.
SENATE AMENDMENT
Bill No. SB 1816
Amendment No.
CHAMBER ACTION
Senate House
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11 Senator Thomas moved the following amendment:
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13 Senate Amendment (with title amendment)
14 Delete everything after the enacting clause,
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16 and insert:
17 Section 1. Section 24.1153, Florida Statutes, is
18 created to read:
19 24.1153 Assignment of prizes payable in installments
20 over time.--
21 (1) The right of any person to receive payments under
22 a prize that is paid in installments over time by the
23 department may be voluntarily assigned, in whole or in part,
24 if the assignment is made to a person or entity designated
25 pursuant to an order of a court of competent jurisdiction
26 located in the judicial district where the assigning prize
27 winner resides or where the headquarters of the department is
28 located. A court may issue an order approving a voluntary
29 assignment and directing the department to make prize payments
30 in whole or in part to the designated assignee, if the court
31 finds that all of the following conditions have been met:
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1 (a) The assignment is in writing, is executed by the
2 assignor, and is, by its terms, subject to the laws of this
3 state.
4 (b) The purchase price being paid for the payments
5 being assigned represents a present value of the payments
6 being assigned, discounted at an annual rate that does not
7 exceed the state's usury limit for loans.
8 (c) The assignor provides a sworn affidavit attesting
9 that he or she:
10 1. Is of sound mind, is in full command of his or her
11 faculties, and is not acting under duress;
12 2. Has been advised regarding the assignment by his or
13 her own independent legal counsel, who is unrelated to and is
14 not being compensated by the assignee or any of the assignee's
15 affiliates, and has received independent financial or tax
16 advice concerning the effects of the assignment from a lawyer
17 or other professional who is unrelated to and is not being
18 compensated by the assignee or any of the assignee's
19 affiliates;
20 3. Understands that he or she will not receive the
21 prize payments or portions thereof for the years assigned;
22 4. Understands and agrees that with regard to the
23 assigned payments the department and its officials and
24 employees will have no further liability or responsibility to
25 make the assigned payments to him or her;
26 5. Has been provided with a one-page written
27 disclosure statement setting forth, in bold type of not less
28 than 14 points, the payments being assigned, by amounts and
29 payment dates; the purchase price being paid; the rate of
30 discount to present value, assuming daily compounding and
31 funding on the contract date; and the amount, if any, of any
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1 origination or closing fees that will be charged to him or
2 her; and
3 6. Was advised in writing, at the time he or she
4 signed the assignment contract, that he or she had the right
5 to cancel the contract, without any further obligation, within
6 3 business days following the date on which the contract was
7 signed.
8 (d) Written notice of the proposed assignment and any
9 court hearing concerning the proposed assignment is provided
10 to the department's counsel at least 10 days prior to any
11 court hearing. The department is not required to appear in or
12 be named as a party to any such action seeking judicial
13 confirmation of an assignment under this section, but may
14 intervene as of right in any such proceeding.
15 (2) A certified copy of a court order approving a
16 voluntary assignment must be provided to the department no
17 later than 14 days before the date on which the payment is to
18 be made.
19 (3) In accordance with the provisions of s. 24.115(4),
20 a voluntary assignment may not include or cover payments or
21 portions of payments that are subject to offset on account of
22 a defaulted or delinquent child-support obligation or on
23 account of a debt owed to a state agency. Each court order
24 issued under subsection (1) shall provide that any delinquent
25 child-support obligations of the assigning prize winner and
26 any debts owed to a state agency by the assigning prize
27 winner, as of the date of the court order, shall be offset by
28 the department first against remaining payments or portions
29 thereof due the the prize winner and then against payments due
30 the assignee.
31 (4) The department, and its respective officials and
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1 employees, shall be discharged of all liability upon payment
2 of an assigned prize under this section.
3 (5) The department may establish a reasonable fee to
4 defray any administrative expenses associated with assignments
5 made under this section, including the cost to the department
6 of any processing fee that may be imposed by a private annuity
7 provider. The fee amount shall reflect the direct and indirect
8 costs associated with processing such assignments.
9 (6) If at any time the Internal Revenue Service or a
10 court of competent jurisdiction issues a determination letter,
11 revenue ruling, other public ruling of the Internal Revenue
12 Service, or published decision to any state lottery or prize
13 winner of any state lottery declaring that the voluntary
14 assignment of prizes will affect the federal income tax
15 treatment of prize winners who do not assign their prizes, the
16 secretary of the department shall immediately file a copy of
17 that letter, ruling, or published decision with the Secretary
18 of State and the Office of the State Courts Administrator. A
19 court may not issue an order authorizing a voluntary
20 assignment under this section after the date any such ruling,
21 letter, or published decision is filed.
22 Section 2. Paragraph (a) of subsection (1) of section
23 24.115, Florida Statutes, is amended to read:
24 24.115 Payment of prizes.--
25 (1) The department shall promulgate rules to establish
26 a system of verifying the validity of tickets claimed to win
27 prizes and to effect payment of such prizes; however:
28 (a) The right of any person to a prize, other than a
29 prize that is payable in installments over time, is shall not
30 be assignable. However, any a prize, to the extent that it has
31 not been assigned or encumbered pursuant to s. 24.1153, may be
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1 paid to the estate of a deceased prize winner or to a person
2 designated pursuant to an appropriate court judicial order. A
3 prize that is payable in installments over time is assignable,
4 but only pursuant to an appropriate court order as provided in
5 s. 24.1153.
6 Section 3. The Department of the Lottery shall seek
7 from the United States Internal Revenue Service a
8 determination letter or revenue ruling declaring that the
9 voluntary assignment of prizes under this act will not affect
10 the federal income tax treatment of prize winners who do not
11 assign their prizes.
12 Section 4. This act shall take effect upon becoming a
13 law, except that sections 1 and 2 shall take effect September
14 1, 1999, or upon receipt by the Department of the Lottery of
15 the declaration sought under section 3, whichever occurs
16 earlier.
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20 And the title is amended as follows:
21 Delete everything before the enacting clause,
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23 and insert:
24 A bill to be entitled
25 An act relating to the state lotteries;
26 creating s. 24.1153, F.S.; authorizing the
27 assignment of certain prizes pursuant to a
28 court order and providing requirements
29 therefor; providing for the securing of funds
30 offset for child-support payments or debts owed
31 to a state agency; exempting the Department of
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1 the Lottery from liability upon payment of an
2 assigned prize; authorizing a fee to defray the
3 administrative expenses associated with such
4 assignments; providing circumstances under
5 which such court orders may no longer be
6 issued; amending s. 24.115, F.S., relating to
7 payment of prizes, to conform; requiring the
8 department to seek a declaration concerning the
9 tax consequences of the right of assignment for
10 those who do not assign their prizes; providing
11 effective dates.
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