Senate Bill 1816
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Florida Senate - 1999 SB 1816
By Senator Thomas
3-1172A-99
1 A bill to be entitled
2 An act relating to the state lotteries;
3 creating s. 24.1153, F.S.; authorizing the
4 assignment of certain prizes pursuant to a
5 court order and providing requirements
6 therefor; providing for the securing of funds
7 offset for child-support payments or debts owed
8 to a state agency; exempting the Department of
9 the Lottery from liability upon payment of an
10 assigned prize; authorizing a fee to defray the
11 administrative expenses associated with such
12 assignments; providing circumstances under
13 which such court orders may no longer be
14 issued; amending ss. 24.115, 24.118, F.S.,
15 relating to payment of prizes and unlawful
16 assignment or transfer of a right to claim a
17 prize, to conform; providing an effective date.
18
19 Be It Enacted by the Legislature of the State of Florida:
20
21 Section 1. Section 24.1153, Florida Statutes, is
22 created to read:
23 24.1153 Assignment of prizes payable in installments
24 over time.--
25 (1) The right of any person to receive payments under
26 a prize that is paid in installments over time by the
27 department may be voluntarily assigned, in whole or in part,
28 if the assignment is made to a person or entity designated
29 pursuant to an order of a court of competent jurisdiction
30 located in the judicial district where the assigning prize
31 winner resides or where the headquarters of the department is
1
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Florida Senate - 1999 SB 1816
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1 located. A court may issue an order approving a voluntary
2 assignment and directing the department to make prize payments
3 in whole or in part to the designated assignee, if the court
4 finds that all of the following conditions have been met:
5 (a) The assignment is in writing, is executed by the
6 assignor, and is, by its terms, subject to the laws of this
7 state.
8 (b) The purchase price being paid for the payments
9 being assigned represents a present value of the payments
10 being assigned, discounted at an annual rate that does not
11 exceed the state's usury limit for loans.
12 (c) The assignor provides a sworn affidavit attesting
13 that he or she:
14 1. Is of sound mind, is in full command of his or her
15 faculties, and is not acting under duress;
16 2. Has been advised regarding the assignment by his or
17 her own independent legal counsel, who is unrelated to and is
18 not being compensated by the assignee or any of the assignee's
19 affiliates, and has received independent financial or tax
20 advice concerning the effects of the assignment from a lawyer
21 or other professional who is unrelated to and is not being
22 compensated by the assignee or any of the assignee's
23 affiliates;
24 3. Understands that he or she will not receive the
25 prize payments or portions thereof for the years assigned;
26 4. Understands and agrees that with regard to the
27 assigned payments the department and its officials and
28 employees will have no further liability or responsibility to
29 make the assigned payments to him or her;
30 5. Has been provided with a one-page written
31 disclosure statement setting forth, in bold type of not less
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Florida Senate - 1999 SB 1816
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1 than 14 points, the payments being assigned, by amounts and
2 payment dates; the purchase price being paid; the rate of
3 discount to present value, assuming daily compounding and
4 funding on the contract date; and the amount, if any, of any
5 origination or closing fees that will be charged to him or
6 her; and
7 6. Was advised in writing, at the time he or she
8 signed the assignment contract, that he or she had the right
9 to cancel the contract, without any further obligation, within
10 3 business days following the date on which the contract was
11 signed.
12 (d) Written notice of the proposed assignment and any
13 court hearing concerning the proposed assignment is provided
14 to the department's counsel at least 10 days prior to any
15 court hearing. The department is not required to appear in or
16 be named as a party to any such action seeking judicial
17 confirmation of an assignment under this section, but may
18 intervene as of right in any such proceeding.
19 (2) 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, unless appropriate
24 provision is made in the court order to satisfy the
25 obligations giving rise to the offset.
26 (3) The department, and its respective officials and
27 employees, shall be discharged of all liability upon payment
28 of an assigned prize under this section.
29 (4) The department may establish a reasonable fee to
30 defray any administrative expenses associated with assignments
31 made under this section, including the cost to the department
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Florida Senate - 1999 SB 1816
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1 of any processing fee that may be imposed by a private annuity
2 provider. The fee amount shall reflect the direct and indirect
3 costs associated with processing such assignments.
4 (5) If at any time the Internal Revenue Service or a
5 court of competent jurisdiction issues a determination letter,
6 revenue ruling, other public ruling of the Internal Revenue
7 Service, or published decision to any state lottery or prize
8 winner of any state lottery declaring that the voluntary
9 assignment of prizes will affect the federal income tax
10 treatment of prize winners who do not assign their prizes, the
11 secretary of the department shall immediately file a copy of
12 that letter, ruling, or published decision with the Secretary
13 of State and the Office of the State Courts Administrator. A
14 court may not issue an order authorizing a voluntary
15 assignment under this section after the date any such ruling,
16 letter, or published decision is filed.
17 (6) Prize winners entitled to choose between payment
18 options may elect to receive a lump sum cash award only during
19 the 60-day period commencing after the winning draw date.
20 (7) With regard to any prize paid over a course of
21 years in accordance with a schedule established by the
22 department at the time of award, the department shall not
23 alter the timing or amount of scheduled payments or otherwise
24 accelerate, defer, commute, or discount such scheduled
25 payments.
26 Section 2. Paragraph (a) of subsection (1) of section
27 24.115, Florida Statutes, is amended to read:
28 24.115 Payment of prizes.--
29 (1) The department shall promulgate rules to establish
30 a system of verifying the validity of tickets claimed to win
31 prizes and to effect payment of such prizes; however:
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Florida Senate - 1999 SB 1816
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1 (a) The right of any person to a prize, other than a
2 prize that is payable in installments over time, is shall not
3 be assignable. However, any a prize, to the extent that it has
4 not already been assigned or encumbered, may be paid to the
5 estate of a deceased prize winner or to a person designated
6 pursuant to an appropriate court judicial order. A prize that
7 is payable in installments over time is assignable, but only
8 pursuant to an appropriate court order as provided in s.
9 24.1153.
10 Section 3. Subsection (2) of section 24.118, Florida
11 Statutes, is amended to read:
12 24.118 Other prohibited acts; penalties.--
13 (2) UNLAWFUL ASSIGNMENT OR TRANSFER OF RIGHT TO CLAIM
14 PRIZE.--Except as authorized in s. 24.1153, any person who
15 induces another to assign or transfer his or her right to
16 claim a prize, who offers for sale his or her right to claim a
17 prize, or who offers for compensation to claim the prize of
18 another is guilty of a misdemeanor of the first degree,
19 punishable as provided in s. 775.082 or s. 775.083.
20 Section 4. This act shall take effect July 1, 1999.
21
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23 SENATE SUMMARY
24 Authorizes the assignment of certain lottery prizes
pursuant to a court order. Provides requirements for such
25 assignments and provides for the securing of funds offset
for child-support payments or debts owed to a state
26 agency. Exempts the Department of the Lottery from
liability upon the payment of an assigned prize.
27 Authorizes an administrative fee to defray administrative
expenses associated with such assignments. Provides
28 circumstances under which court orders may not be issued.
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