S T A T E   O F   N E W   Y O R K
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                                  1675

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 4, 2009
                               ___________

Introduced  by Sen. FLANAGAN -- 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 unclaimed and abandoned
  prize money

  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 and 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.
  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
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  chang-
es.]

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06528-01-9

              

S. 1675                             2

  b.  UNCLAIMED  PRIZE  MONEY FOR THE PRIZE ON A WINNING TICKET SHALL BE
RETAINED BY THE DIVISION FOR PAYMENT TO THE PERSON ENTITLED THERETO  FOR
NOT  LESS  THAN  SIX  MONTHS AFTER THE DRAWING OR AFTER THE CLOSE OF THE
GAME IN WHICH THE PRIZE WAS WON. IF NO CLAIM IS MADE FOR THE PRIZE WITH-
IN  SIX  MONTHS  FROM  THE  DATE OF THE DRAWING OR FROM THE CLOSE OF THE
GAME, AN AMOUNT EQUIVALENT TO THE PRIZE AMOUNT SHALL BE USED TO  PROVIDE
ADDITIONAL MONEYS TO THE STATE LOTTERY FUND FOR THE PURPOSE OF PROVIDING
AID  TO  PUPILS  (WITH  SPECIAL  EDUCATIONAL NEEDS AND WITH HANDICAPPING
CONDITIONS) AS SET FORTH IN ITEM (II) OF SUBDIVISION  THREE  OF  SECTION
NINETY-TWO-C OF THE STATE FINANCE LAW.
  C.  IN THE EVENT THAT A VALID PRIZE CLAIM IS SUBMITTED TO THE DIVISION
MORE THAN SIX MONTHS BUT LESS THAN ONE YEAR FROM THE DATE OF THE DRAWING
OR FROM THE CLOSE OF THE GAME IN WHICH THE PRIZE WAS WON,  THE  DIVISION
SHALL  PAY SUCH CLAIM NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION B OF
THIS SECTION. IF, AT THE TIME SUCH CLAIM IS PAID, AN  AMOUNT  EQUIVALENT
TO  THE  PRIZE  AMOUNT HAS ALREADY BEEN TRANSFERRED TO THE STATE LOTTERY
FUND IN ACCORDANCE WITH SUBDIVISION B OF THIS SECTION, THEN  SUCH  CLAIM
SHALL BE PAID FROM SUCH FUNDS AS ARE THEN AVAILABLE IN THE LOTTERY PRIZE
ACCOUNT AND A LIKE AMOUNT SHALL BE DEDUCTED FROM ANY SUBSEQUENT TRANSFER
TO THE STATE LOTTERY FUND PURSUANT TO THIS SECTION.
  D. 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 immediately.