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

                                  4682

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 14, 2011
                               ___________

Introduced  by Sen. FLANAGAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

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.
                                                           LBD10814-01-1

              

S. 4682                             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.