Assembly Bill A5290

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

                                  5290

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 11, 2009
                               ___________

Introduced by M. of A. MENG, DelMONTE, SPANO -- Multi-Sponsored by -- M.
  of A. CAHILL, PHEFFER, REILLY -- read once and referred to the Commit-
  tee on Ways and Means

AN  ACT to amend the tax law, in relation to directing that the proceeds
  of lottery prizes shall be used to pay outstanding debts owed  by  the
  prize winner

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph 5 of subdivision d of section  1613  of  the  tax
law,  as added by chapter 426 of the laws of 2006, is amended to read as
follows:
  5. A voluntary assignment may not include portions  of  payments  that
are  subject  to  offset  on  account of a defaulted or delinquent child
support obligation, non-wage garnishment, DELINQUENT TAXES  or  criminal
restitution  obligation  or on account of a debt owed to a state agency.
Each court order issued under paragraph one of  this  subdivision  shall
provide  that any delinquent child support or criminal restitution obli-
gations of the assigning prize winner and any  debts  owed  to  a  state
agency by the assigning prize winner, as of the date of the court order,
shall  be  set  off  by the division first against remaining payments or
portions thereof due the prize winner and then against payments due  the
assignee.
  S  2.  Subdivision  4  of section 1613-a of the tax law, as amended by
chapter 601 of the laws of 2007, is amended to read as follows:
  (4) (A) Prior to awarding any lottery prize of six hundred dollars  or
more,  the  division of the lottery shall review the notice of liability
of past-due support provided by the state office of temporary and  disa-
bility  assistance.  For  each  lottery  prize winner identified on such
notice as an individual, estate or trust  owing  past-due  support,  the
lottery division shall credit to the state office of temporary and disa-
bility  assistance  such  amount  of  the  prize to satisfy the past-due

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05189-01-9
              

A. 5290                             2

support, and any remainder shall be awarded to the prize winner, SUBJECT
TO THE PROVISIONS OF PARAGRAPHS (B) AND  (C)  OF  THIS  SUBDIVISION.  In
cases  where  the  prize  winner  owes past-due support to more than one
person  or  entity, and the total amount of past-due support provided in
the notice of liability of past-due  support  to  the  division  of  the
lottery  by  the  state  office  of  temporary and disability assistance
exceeds the balance remaining, each such person or entity shall  receive
a pro rata share of the balance remaining, such share to be based on the
amount  of past-due support owed to such person or entity as provided to
the division of the lottery by such office pursuant to this section. The
state office of temporary and disability assistance shall be responsible
for determining and distributing each  person's  or  entity's  pro  rata
share of past-due support pursuant to regulations of such office.
  (B)  IN CALCULATING THE AMOUNT OF A LOTTERY PRIZE WHICH SHALL BE CRED-
ITED AGAINST THE AMOUNT OF PAST-DUE SUPPORT  OWED,  THE  DIVISION  SHALL
FIRST CREDIT THE AMOUNT OF THE LOTTERY PRIZE AGAINST ANY:
  (I)  LIABILITY  OF  SUCH INDIVIDUAL, ESTATE OR TRUST IN RESPECT OF ANY
TAX IMPOSED BY THIS CHAPTER; AND
  (II) LIABILITY OF SUCH INDIVIDUAL, ESTATE OR TRUST FOR ANY TAX IMPOSED
PURSUANT TO THE AUTHORITY OF THIS CHAPTER OR ANY OTHER LAW IF  SUCH  TAX
IS ADMINISTERED BY THE TAX COMMISSION.
  (C)  ONLY  THE  BALANCE REMAINING, AFTER SUCH LOTTERY PRIZE AMOUNT AND
ANY INTEREST THEREON HAS BEEN CREDITED AS DESCRIBED IN PARAGRAPH (B)  OF
THIS  SUBDIVISION,  SHALL BE CERTIFIED TO BE CREDITED AGAINST THE AMOUNT
OF PAST-DUE SUPPORT, WITH THE REMAINDER TO  BE  REFUNDED  TO  THE  PRIZE
WINNER  IF NOT REQUIRED TO SATISFY THE AMOUNT OF PUBLIC ASSISTANCE BENE-
FITS OWED TO A STATE AGENCY PURSUANT TO SECTION  SIXTEEN  HUNDRED  THIR-
TEEN-B  OF  THIS  ARTICLE AND/OR A CITY OF NEW YORK TAX WARRANT JUDGMENT
DEBT PURSUANT TO SECTION SIXTEEN HUNDRED THIRTEEN-D OF THIS ARTICLE.
  S 3. Subdivisions 1 and 3 of section 1613-b of the tax law, as amended
by chapter 601 of the laws of 2007, are amended to read as follows:
  (1) Notwithstanding any limitations in section one hundred four of the
social services law, the director of the lottery, on behalf of the divi-
sion of the lottery, shall enter  into  a  written  agreement  with  the
commissioner  of  the  office of temporary and disability assistance, on
behalf of the office of temporary and disability assistance, which shall
set forth the  procedures  for  crediting  any  lottery  prize  of  [six
hundred]  TEN  THOUSAND dollars or more awarded to an individual against
any and all public assistance benefits which were given to or on  behalf
of such individual within a period of up to ten years prior to the issu-
ance  of  such prize of which the director of the lottery has been noti-
fied by the commissioner of  the  office  of  temporary  and  disability
assistance  pursuant  to  the  provisions  of  such agreement; provided,
however, that in no event shall such credit to the office  of  temporary
and disability assistance exceed fifty percent of any such lottery prize
and provided further that, unless otherwise determined cost effective by
the  commissioner  of  the office of temporary and disability assistance
and the director of the lottery such procedure shall be required only to
the extent that and with respect to periods for which it can be effected
through automated type match.
  (3) (A) Prior to awarding any lottery prize of [six hundred] TEN THOU-
SAND dollars or more, the division  of  the  lottery  shall  review  the
notice  of  liability of public assistance benefits paid provided by the
office of temporary and disability assistance. For  each  lottery  prize
winner  identified  on such notice as an individual, who is receiving or
has received, within the last ten years, public assistance benefits, the

A. 5290                             3

lottery division shall credit to the office of temporary and  disability
assistance  such  amount  of  the  prize to satisfy the amount of public
assistance benefits indicated as received within the previous ten years,
and  any  remainder shall be awarded to the prize winner, SUBJECT TO THE
PROVISIONS OF PARAGRAPHS (B) AND  (C)  OF  THIS  SUBDIVISION;  provided,
however,  that  in no event shall such credit to the office of temporary
and disability assistance exceed  fifty  percent  of  any  such  lottery
prize.
  (B)  IN CALCULATING THE AMOUNT OF A LOTTERY PRIZE WHICH SHALL BE CRED-
ITED AGAINST THE AMOUNT OF PUBLIC ASSISTANCE BENEFITS TO BE REPAID,  THE
DIVISION SHALL FIRST CREDIT THE AMOUNT OF THE LOTTERY PRIZE AGAINST ANY:
  (I)  LIABILITY  OF  SUCH INDIVIDUAL, ESTATE OR TRUST IN RESPECT OF ANY
TAX IMPOSED BY THIS CHAPTER;
  (II) LIABILITY OF SUCH INDIVIDUAL, ESTATE OR TRUST FOR ANY TAX IMPOSED
PURSUANT TO THE AUTHORITY OF THIS CHAPTER OR ANY OTHER LAW IF  SUCH  TAX
IS ADMINISTERED BY THE TAX COMMISSION; AND
  (III)  PAST-DUE  SUPPORT  OWED  BY  THE  TAXPAYER  PURSUANT TO SECTION
SIXTEEN HUNDRED THIRTEEN-A OF THIS ARTICLE.
  (C) ONLY THE BALANCE REMAINING, AFTER SUCH LOTTERY  PRIZE  AMOUNT  AND
ANY  INTEREST THEREON HAS BEEN CREDITED AS DESCRIBED IN PARAGRAPH (B) OF
THIS SUBDIVISION, SHALL BE CERTIFIED TO BE CREDITED AGAINST  THE  AMOUNT
OF  PUBLIC  ASSISTANCE  BENEFITS  TO BE REPAID, WITH THE REMAINDER TO BE
REFUNDED TO THE PRIZE WINNER IF NOT REQUIRED TO SATISFY THE AMOUNT OF  A
CITY  OF  NEW YORK TAX WARRANT JUDGMENT DEBT PURSUANT TO SECTION SIXTEEN
HUNDRED THIRTEEN-D OF THIS ARTICLE.
  S 4. The tax law is amended  by  adding  three  new  sections  1613-c,
1613-d and 1613-e to read as follows:
  S  1613-C.  CREDITING  OF LOTTERY PRIZES AGAINST OUTSTANDING TAX DEBT.
(1) FOR PURPOSES OF THIS SECTION:
  (A) "JUDGMENT" SHALL MEAN A WARRANT FILED WITH A COUNTY CLERK  WHEREBY
THE  COMMISSIONER  IS,  IN  THE  RIGHT OF THE PEOPLE OF THE STATE OF NEW
YORK, DEEMED TO HAVE OBTAINED JUDGMENT  AGAINST  AN  INDIVIDUAL,  CORPO-
RATION,  ASSOCIATION,  COMPANY,  PARTNERSHIP, ESTATE, TRUST, LIQUIDATOR,
FIDUCIARY OR OTHER ENTITY, IDENTIFIED IN A TAX WARRANT AS  THE  JUDGMENT
DEBTOR, FOR A TAX OR OTHER IMPOSITION;
  (B)  "PAST-DUE  TAXES"  SHALL MEAN DELINQUENT TAXES SUBJECT TO, AND IN
SUCH AMOUNT AS IS SPECIFIED IN, A JUDGMENT, TOGETHER WITH  ANY  INTEREST
THEREON; AND
  (C) "TAXPAYER" SHALL MEAN ANY ENTITY WHICH:
  (I)  IS  LIABLE  FOR  ANY  TAX OR IMPOSITION IMPOSED BY OR PURSUANT TO
ARTICLE  NINE,   NINE-A,   TWENTY-TWO,   THIRTY,   THIRTY-A,   THIRTY-B,
THIRTY-TWO,  OR THIRTY-THREE OF THIS CHAPTER, WHICH TAX OR OTHER IMPOSI-
TION IS ADMINISTERED BY THE COMMISSIONER, OR WHO OR  WHICH  IS  UNDER  A
DUTY  TO  PERFORM  AN  ACT  UNDER OR PURSUANT TO SUCH TAX OR IMPOSITION,
INCLUDING AN INDIVIDUAL, CORPORATION, ASSOCIATION, COMPANY, PARTNERSHIP,
ESTATE, TRUST, LIQUIDATOR, OR FIDUCIARY, BUT EXCLUDING A STATE AGENCY, A
MUNICIPAL CORPORATION OR A DISTRICT CORPORATION;
  (II) IS RECEIVING OR IS ENTITLED TO RECEIVE THE PROCEEDS OF A  LOTTERY
PRIZE PURSUANT TO AWARD OR ASSIGNMENT; AND
  (III) SUBJECT TO A JUDGMENT AS DEFINED IN THIS SUBDIVISION.
  (2) NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY, ALL OR PART OF THE
PROCEEDS  OF  CERTAIN  LOTTERY PRIZES MAY BE PAID BY THE DIVISION TO THE
DEPARTMENT IN FULL OR PARTIAL  SATISFACTION  OF  A  JUDGMENT  AGAINST  A
TAXPAYER  FOR  PAST-DUE  TAXES. THE DIRECTOR, ON BEHALF OF THE DIVISION,
AND THE COMMISSIONER, ON BEHALF OF THE DEPARTMENT, SHALL  ENTER  INTO  A
WRITTEN AGREEMENT WHICH SHALL SET FORTH THE PROCEDURES FOR CREDITING ANY

A. 5290                             4

LOTTERY  PRIZE  OF  FIVE  THOUSAND DOLLARS OR MORE AWARDED TO A TAXPAYER
AGAINST PAST-DUE TAXES OWED BY  THE  TAXPAYER  OF  WHICH  LIABILITY  THE
DIRECTOR   HAS  BEEN  NOTIFIED  BY  THE  COMMISSIONER  PURSUANT  TO  THE
PROVISIONS OF SUCH AGREEMENT.
  (3) SUCH AGREEMENT SHALL INCLUDE:
  (A)  THE  PROCEDURE  UNDER  WHICH THE DEPARTMENT SHALL CERTIFY TO, AND
NOTIFY, THE DIVISION ABOUT AN OUTSTANDING  JUDGMENT,  AMOUNTS  REMAINING
DUE THEREON AND THE FORMAT OF CERTIFICATION AND NOTIFICATION;
  (B)  THE  FEE  FOR REIMBURSEMENT OF THE DIVISION BY THE DEPARTMENT FOR
THE COST OF IMPLEMENTING PROCEDURES AUTHORIZED BY THIS SECTION;
  (C) THE PROCEDURE FOR  TRANSFERRING  LOTTERY  PRIZE  WINNINGS  TO  THE
DEPARTMENT SO THE AMOUNTS CAN BE CREDITED THE PAST-DUE TAXES;
  (D)  THE PROCEDURE FOR REIMBURSEMENT OF THE DIVISION BY THE DEPARTMENT
IN THE EVENT LOTTERY PRIZE FUNDS WERE CREDITED  TO  THE  DEPARTMENT  FOR
AMOUNTS DUE UNDER A JUDGMENT THAT WAS OTHERWISE SATISFIED OR FOR WHICH A
SPOUSE  WAS NOT LIABLE PURSUANT TO SECTION SIXTEEN HUNDRED THIRTEEN-E OF
THIS ARTICLE; AND
  (E) SUCH OTHER MATTERS AS THE PARTIES  TO  THE  AGREEMENT  SHALL  DEEM
NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SECTION.
  (4)  (A)  PRIOR TO AWARDING ANY LOTTERY PRIZE OF FIVE THOUSAND DOLLARS
OR MORE, THE DIVISION SHALL REVIEW THE NOTICE OF LIABILITY  OF  PAST-DUE
TAXES  PROVIDED BY THE DEPARTMENT. FOR EACH LOTTERY PRIZE WINNER IDENTI-
FIED ON SUCH NOTICE AS A TAXPAYER OWING  PAST-DUE  TAXES,  THE  DIVISION
SHALL  CREDIT  TO  THE DEPARTMENT SUCH AMOUNT OF THE LOTTERY PRIZE AS IS
NECESSARY TO SATISFY THE PAST-DUE TAXES,  AND  ANY  REMAINDER,  IF  ANY,
SHALL  BE  AWARDED  TO THE PRIZE WINNER. IN CASES WHERE THE PRIZE WINNER
OWES PAST-DUE TAXES TO MORE THAN ONE STATE AGENCY OR DEPARTMENT, AND THE
TOTAL AMOUNT OF PAST-DUE TAXES PROVIDED IN THE NOTICE  OF  LIABILITY  OF
PAST-DUE  TAXES TO THE DIVISION BY THE DEPARTMENT EXCEEDS THE BALANCE OF
THE LOTTERY PRIZE, EACH SUCH AGENCY AND DEPARTMENT SHALL RECEIVE  A  PRO
RATA  SHARE  OF  THE  BALANCE,  SUCH  SHARE TO BE BASED ON THE AMOUNT OF
PAST-DUE TAXES OWED TO SUCH AGENCY OR  DEPARTMENT  AS  PROVIDED  TO  THE
DIVISION  BY  THE  DEPARTMENT  PURSUANT TO THIS SECTION.  THE DEPARTMENT
SHALL BE RESPONSIBLE FOR DETERMINING AND DISTRIBUTING EACH  AGENCY'S  OR
DEPARTMENT'S PRO RATA SHARE OF PAST-DUE TAXES PURSUANT TO REGULATIONS OF
THE DEPARTMENT.
  (B)  THE  BALANCE  REMAINING,  AFTER SUCH LOTTERY PRIZE AMOUNT AND ANY
INTEREST THEREON HAS BEEN CREDITED AS DESCRIBED IN PARAGRAPH (A) OF THIS
SUBDIVISION, SHALL BE REFUNDED TO THE TAXPAYER IF SUCH REMAINDER IS  NOT
REQUIRED  TO  SATISFY THE AMOUNT OF PAST-DUE SUPPORT PURSUANT TO SECTION
SIXTEEN HUNDRED THIRTEEN-A OF THIS ARTICLE, AND/OR THE AMOUNT OF  PUBLIC
ASSISTANCE  BENEFITS  OWED TO A STATE AGENCY PURSUANT TO SECTION SIXTEEN
HUNDRED THIRTEEN-B OF THIS ARTICLE AND/OR A CITY OF NEW YORK TAX WARRANT
JUDGMENT DEBT PURSUANT TO SECTION SIXTEEN  HUNDRED  THIRTEEN-D  OF  THIS
ARTICLE.
  (5)  THE DIVISION SHALL CERTIFY TO THE COMPTROLLER THE TOTAL AMOUNT OF
THE LOTTERY PRIZE WINNINGS TO BE CREDITED AGAINST PAST-DUE TAXES AND THE
REMAINDER OF SUCH PRIZE WINNING, IF ANY, TO BE AWARDED TO THE TAXPAYER.
  (6) THE DEPARTMENT SHALL NOTIFY THE TAXPAYER AT  THE  TAXPAYER'S  LAST
KNOWN ADDRESS:
  (A)  OF THE NATURE AND AMOUNT OF THE PAST-DUE TAXES OR IMPOSITION, THE
TAX-YEAR OR DATE SUCH LIABILITY AROSE, AND THAT ONE  OR  MORE  JUDGMENTS
HAVE ISSUED REGARDING THE PAST-DUE TAXES OR IMPOSITION;
  (B) THAT STATE LAW PERMITS PAYMENT OF THE AMOUNTS OWED PURSUANT TO THE
JUDGMENTS  BY  APPLICATION OF CERTAIN LOTTERY PRIZE PROCEEDS, WHICH WILL
BE CREDITED AGAINST THE JUDGMENT AMOUNTS;

A. 5290                             5

  (C) THAT THE TAXPAYER'S  LOTTERY  PRIZE  WINNINGS  SHALL  BE  CREDITED
AGAINST THE AMOUNT OF PAST-DUE TAXES OWED PURSUANT TO THE JUDGMENTS;
  (D)  THAT  THE  TAXPAYER  MAY REQUEST A REVIEW OF THE CREDITING OF THE
LOTTERY PROCEEDS AGAINST A JUDGMENT  BY  CONTACTING  THE  DEPARTMENT  OF
TAXATION  AND  FINANCE AT A TELEPHONE NUMBER OR ADDRESS DISCLOSED IN THE
NOTICE; AND
  (E) THAT THE TAXPAYER MAY PRESENT TO THE DEPARTMENT  OF  TAXATION  AND
FINANCE  ANY  WRITTEN  EVIDENCE AND ARGUMENTS IN SUPPORT OF A DEFENSE TO
THE APPLICATION OF THE LOTTERY PRIZE PROCEEDS OR MAY APPEAR AT A  SCHED-
ULED  CONFERENCE  WITH THE DEPARTMENT OF TAXATION AND FINANCE TO PRESENT
ORAL ARGUMENTS AND WRITTEN AND ORAL EVIDENCE IN SUPPORT OF SUCH DEFENSE;
PROVIDED HOWEVER, NOTHING IN THIS SECTION SHALL BE DEEMED  TO  AFFORD  A
TAXPAYER  THE  OPPORTUNITY  TO REARGUE ANY ISSUE WHICH WAS OR COULD HAVE
BEEN ADJUDICATED IN AN ADMINISTRATIVE OR JUDICIAL  PROCEEDING  PRIOR  TO
FILING OF A WARRANT SERVING AS A JUDGMENT.
  (7)  THE DIVISION SHALL NOTIFY THE TAXPAYER, IN WRITING, OF THE AMOUNT
OF THE LOTTERY PRIZE THAT IS PAID TO THE DEPARTMENT.  THE DIVISION  WILL
ALSO  NOTIFY  ANY  OTHER PERSON WHO MAY HAVE FILED A JOINT RETURN WITH A
TAXPAYER OF THE STEPS SUCH OTHER PERSON MAY TAKE IN ORDER TO SECURE  HIS
OR HER PROPER SHARE, IF ANY, OF THE LOTTERY PRIZE.
  (8)  FROM  THE  TIME  THE  DIVISION IS NOTIFIED BY THE DEPARTMENT OF A
TAXPAYER'S LIABILITY FOR A JUDGMENT UNDER THE AGREEMENT PROVIDED FOR  IN
THIS  SECTION,  THE  DIVISION SHALL BE RELIEVED OF ALL LIABILITY TO SUCH
TAXPAYER, ITS ASSIGNS, SUCCESSORS,  HEIRS  OR  REPRESENTATIVES  FOR  THE
AMOUNT  OF THE LOTTERY PRIZE CERTIFIED TO THE COMPTROLLER TO BE CREDITED
AGAINST THE AMOUNT OF PAST-DUE TAXES, AND SUCH  TAXPAYER,  ITS  ASSIGNS,
SUCCESSORS,  HEIRS  OR REPRESENTATIVES SHALL HAVE NO RIGHT TO COMMENCE A
COURT ACTION OR PROCEEDING OR HAVE ANY OTHER LEGAL RECOURSE AGAINST  THE
DIVISION  TO  RECOVER  THE  AMOUNTS  SO  CERTIFIED, OR INTEREST THEREON;
PROVIDED, HOWEVER, THAT NOTHING IN THIS SUBDIVISION SHALL  BE  CONSTRUED
TO  PRECLUDE  ANY  LEGAL,  EQUITABLE,  OR  ADMINISTRATIVE ACTION BY SUCH
TAXPAYER, ITS ASSIGNS, SUCCESSORS, HEIRS OR REPRESENTATIVES ENTITLED  TO
SUCH  LOTTERY  PRIZE  AGAINST THE DEPARTMENT TO RECOVER SUCH PART OF THE
PAYMENT AS CERTIFIED TO THE  COMPTROLLER  TO  BE  CREDITED  AGAINST  THE
PAST-DUE  TAXES  THAT  IS  GREATER  THAN  THE AMOUNT OF THE JUDGMENT AND
INTEREST THEREON OWED BY SUCH TAXPAYER ON THE DATE PAYMENT  IS  CREDITED
AGAINST A JUDGMENT, TOGETHER WITH INTEREST THEREON.
  (9)  THE COMMISSIONER AND THE DIRECTOR SHALL PROMULGATE SUCH RULES AND
REGULATIONS AS DEEMED NECESSARY TO CARRY  OUT  THE  PROVISIONS  OF  THIS
SECTION.
  S  1613-D.  CREDITING  OF  LOTTERY PRIZES AGAINST OUTSTANDING TAX DEBT
OWED TO THE CITY OF NEW YORK. (1) FOR PURPOSES OF THIS SECTION:
  (A) "CITY OF NEW YORK TAX WARRANT JUDGMENT DEBT" SHALL MEAN  TAX  DEBT
OWED TO THE CITY OF NEW YORK THAT IS THE SUBJECT OF A TAX WARRANT ISSUED
BY  THE  CITY OF NEW YORK DEPARTMENT OF FINANCE AND DOCKETED PURSUANT TO
THE PROVISIONS OF TITLE ELEVEN OF THE ADMINISTRATIVE CODE OF THE CITY OF
NEW YORK AND THAT REMAINS OUTSTANDING;
  (B) "PAST-DUE TAXES" SHALL MEAN DELINQUENT TAXES SUBJECT  TO,  AND  IN
SUCH AMOUNT AS IS SPECIFIED IN, A CITY OF NEW YORK TAX WARRANT JUDGMENT,
TOGETHER WITH ANY INTEREST THEREON; AND
  (C) "TAXPAYER" SHALL MEAN ANY ENTITY WHICH:
  (I)  IS  LIABLE  FOR  ANY  TAX OR IMPOSITION IMPOSED BY OR PURSUANT TO
ARTICLE  NINE,   NINE-A,   TWENTY-TWO,   THIRTY,   THIRTY-A,   THIRTY-B,
THIRTY-TWO,  OR THIRTY-THREE OF THIS CHAPTER, WHICH TAX OR OTHER IMPOSI-
TION IS ADMINISTERED BY THE COMMISSIONER, OR IS LIABLE FOR  ANY  TAX  OR
IMPOSITION  IMPOSED BY OR PURSUANT TO TITLE ELEVEN OF THE ADMINISTRATIVE

A. 5290                             6

CODE OF THE CITY OF NEW YORK OR WHO OR WHICH IS UNDER A DUTY TO  PERFORM
AN  ACT  UNDER OR PURSUANT TO SUCH TAX OR IMPOSITION, INCLUDING AN INDI-
VIDUAL, CORPORATION, ASSOCIATION, COMPANY, PARTNERSHIP,  ESTATE,  TRUST,
LIQUIDATOR,  OR  FIDUCIARY,  BUT  EXCLUDING  A STATE AGENCY, A MUNICIPAL
CORPORATION OR A DISTRICT CORPORATION;
  (II) IS RECEIVING OR IS ENTITLED TO RECEIVE THE PROCEEDS OF A  LOTTERY
PRIZE PURSUANT TO AWARD OR ASSIGNMENT;
  (III)  IS SUBJECT TO A CITY OF NEW YORK TAX WARRANT JUDGMENT AS REFER-
ENCED IN SUBDIVISION (A) OF THIS SECTION.
  (2) NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY, ALL OR PART OF THE
PROCEEDS OF CERTAIN LOTTERY PRIZES MAY BE PAID BY THE  DIVISION  TO  THE
COMMISSIONER  OF  FINANCE  OF  THE  CITY  OF NEW YORK IN FULL OR PARTIAL
SATISFACTION OF A CITY OF NEW YORK TAX WARRANT JUDGMENT DEBT. THE DIREC-
TOR, ON BEHALF OF THE DIVISION, AND THE COMMISSIONER OF FINANCE  OF  THE
CITY  OF  NEW  YORK,  ON  BEHALF  OF  THE CITY OF NEW YORK DEPARTMENT OF
FINANCE, SHALL ENTER INTO A WRITTEN AGREEMENT WHICH SHALL SET FORTH  THE
PROCEDURES  FOR  CREDITING ANY LOTTERY PRIZE OF FIVE THOUSAND DOLLARS OR
MORE AWARDED TO A TAXPAYER AGAINST A CITY OF NEW YORK TAX WARRANT  JUDG-
MENT DEBT OWED BY THE TAXPAYER OF WHICH DEBT THE DIRECTOR HAS BEEN NOTI-
FIED  BY THE COMMISSIONER OF FINANCE OF THE CITY OF NEW YORK PURSUANT TO
THE PROVISIONS OF SUCH AGREEMENT.
  (3) SUCH AGREEMENT SHALL INCLUDE:
  (A) THE PROCEDURE UNDER WHICH THE COMMISSIONER OF FINANCE OF THE  CITY
OF  NEW YORK SHALL CERTIFY TO, AND NOTIFY, THE DIVISION OF A CITY OF NEW
YORK TAX WARRANT JUDGMENT DEBT AND AMOUNTS REMAINING  DUE  THEREON,  AND
THE  FORMAT, SPECIFYING WHEN THE DIVISION WILL BE NOTIFIED, THE INFORMA-
TION TO BE CONTAINED IN SUCH NOTIFICATION, AND THE FORM  AND  FORMAT  OF
THE CERTIFICATION AND NOTIFICATION;
  (B)  THE FEE FOR REIMBURSEMENT OF THE DIVISION BY THE CITY OF NEW YORK
DEPARTMENT OF FINANCE FOR  THE  FULL  COST  OF  IMPLEMENTING  PROCEDURES
AUTHORIZED BY THIS SECTION;
  (C)  THE  MINIMUM  PERIOD  OF  DELINQUENCY OF THE CITY OF NEW YORK TAX
WARRANT JUDGMENT DEBT, AND THE MINIMUM AMOUNT OF THE PAST  DUE  CITY  OF
NEW  YORK  TAX  WARRANT  JUDGMENT DEBT AGAINST WHICH THE DIVISION SHALL,
PURSUANT TO THIS SECTION, CREDIT AMOUNTS OF THE LOTTERY PRIZE;
  (D) THE PROCEDURE FOR TRANSFERRING LOTTERY PRIZE AMOUNTS TO  THE  CITY
OF NEW YORK DEPARTMENT OF FINANCE SO THE AMOUNTS CAN BE CREDITED AGAINST
THE CITY OF NEW YORK TAX WARRANT JUDGMENT DEBT;
  (E) THE PROCEDURE FOR REIMBURSING THE DIVISION BY THE CITY OF NEW YORK
DEPARTMENT OF FINANCE IN THE EVENT THAT LOTTERY PRIZE FUNDS WERE CREDIT-
ED  TO  THE  CITY OF NEW YORK DEPARTMENT OF FINANCE FOR AMOUNTS DUE WITH
REGARD TO A CITY OF NEW YORK TAX WARRANT JUDGMENT DEBT THAT  WAS  OTHER-
WISE  SATISFIED OR FOR WHICH A SPOUSE WAS NOT LIABLE PURSUANT TO SECTION
SIXTEEN HUNDRED THIRTEEN-E OF THIS ARTICLE; AND
  (F) SUCH OTHER MATTERS AS THE PARTIES  TO  THE  AGREEMENT  SHALL  DEEM
NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SECTION.
  (4)  (A)  IN  CALCULATING THE AMOUNT OF A LOTTERY PRIZE WHICH SHALL BE
CREDITED AGAINST THE CITY OF NEW YORK TAX WARRANT JUDGMENT DEBT OWED  BY
A  TAXPAYER,  THE  DIVISION SHALL FIRST CREDIT THE AMOUNT OF THE LOTTERY
PRIZE AGAINST ANY:
  (I) LIABILITY OF SUCH TAXPAYER IN RESPECT OF ANY TAX IMPOSED  BY  THIS
CHAPTER;
  (II)  LIABILITY  OF  SUCH TAXPAYER FOR ANY TAX IMPOSED PURSUANT TO THE
AUTHORITY OF THIS CHAPTER OR ANY OTHER LAW IF SUCH TAX  IS  ADMINISTERED
BY THE TAX COMMISSION;

A. 5290                             7

  (III)  PAST-DUE  SUPPORT  OWED  BY  THE  TAXPAYER  PURSUANT TO SECTION
SIXTEEN HUNDRED THIRTEEN-A OF THIS ARTICLE; AND
  (IV)  THE  AMOUNT OF PUBLIC ASSISTANCE BENEFITS OWED TO A STATE AGENCY
PURSUANT TO SECTION SIXTEEN HUNDRED THIRTEEN-B OF THIS ARTICLE.
  (B) ONLY THE BALANCE REMAINING, AFTER SUCH LOTTERY  PRIZE  AMOUNT  AND
ANY  INTEREST THEREON HAS BEEN CREDITED AS DESCRIBED IN PARAGRAPH (A) OF
THIS SUBDIVISION, SHALL BE CERTIFIED TO BE CREDITED AGAINST  THE  AMOUNT
OF  CITY OF NEW YORK TAX WARRANT JUDGMENT DEBT, WITH THE REMAINDER TO BE
REFUNDED TO THE TAXPAYER.
  (5) THE DIVISION SHALL CERTIFY TO THE COMPTROLLER AND TO  THE  COMMIS-
SIONER  THE  AMOUNT  OF  EACH OVERPAYMENT AND THE INTEREST THEREON TO BE
CREDITED AGAINST CITY OF NEW YORK TAX WARRANT  JUDGMENT  DEBT,  AND  THE
BALANCE, IF ANY, OF EACH SUCH OVERPAYMENT AND INTEREST TO BE REFUNDED TO
THE TAXPAYER.
  (6)  THE  CITY  OF  NEW  YORK  DEPARTMENT  OF FINANCE SHALL NOTIFY THE
TAXPAYER AT THE TAXPAYER'S LAST KNOWN ADDRESS:
  (A) OF THE CITY OF NEW YORK TAX WARRANT JUDGMENT DEBT, THE TAX-YEAR OR
DATE SUCH LIABILITY AROSE, AND THAT ONE OR MORE TAX WARRANTS  HAVE  BEEN
ISSUED REGARDING THE DEBT;
  (B) THAT STATE LAW PERMITS PAYMENT OF THE AMOUNTS OWED PURSUANT TO THE
TAX  WARRANTS  BY  APPLICATION  OF CERTAIN LOTTERY PRIZE PROCEEDS, WHICH
WILL BE CREDITED AGAINST THE WARRANT AMOUNTS;
  (C) THAT THE TAXPAYER'S  LOTTERY  PRIZE  WINNINGS  SHALL  BE  CREDITED
AGAINST THE AMOUNT OF THE CITY OF NEW YORK TAX WARRANT JUDGMENT DEBT;
  (D)  THAT  THE TAXPAYER MAY REQUEST A REVIEW OF THE APPLICATION OF THE
LOTTERY PROCEEDS TO THE TAX WARRANT DEBT BY CONTACTING THE CITY  OF  NEW
YORK DEPARTMENT OF FINANCE AT A TELEPHONE NUMBER OR ADDRESS DISCLOSED IN
THE NOTICE; AND
  (E)  THAT  THE TAXPAYER MAY PRESENT TO THE CITY OF NEW YORK DEPARTMENT
OF FINANCE ANY WRITTEN EVIDENCE AND ARGUMENTS IN SUPPORT OF A DEFENSE TO
THE APPLICATION OF THE LOTTERY PRIZE PROCEEDS OR MAY APPEAR AT A  SCHED-
ULED  CONFERENCE WITH THE DEPARTMENT TO PRESENT ORAL ARGUMENTS AND WRIT-
TEN AND ORAL EVIDENCE IN SUPPORT  OF  SUCH  DEFENSE;  PROVIDED  HOWEVER,
NOTHING  HEREIN  SHALL BE DEEMED TO AFFORD A TAXPAYER THE OPPORTUNITY TO
REARGUE ANY ISSUE WHICH WAS OR COULD HAVE BEEN ADJUDICATED IN AN  ADMIN-
ISTRATIVE OR JUDICIAL PROCEEDING PRIOR TO ISSUANCE OF THE TAX WARRANT.
  (7)  THE DIVISION SHALL NOTIFY THE TAXPAYER, IN WRITING, OF THE AMOUNT
OF THE LOTTERY PRIZE THAT IS CREDITED AGAINST THE CITY OF NEW  YORK  TAX
WARRANT  JUDGMENT  DEBT  OWED  BY  A TAXPAYER. SUCH NOTICE SHALL INCLUDE
NOTIFICATION TO ANY OTHER PERSON WHO MAY HAVE FILED A JOINT RETURN  WITH
A  TAXPAYER  OF  THE STEPS SUCH OTHER PERSON MAY TAKE IN ORDER TO SECURE
HIS OR HER PROPER SHARE, IF ANY, OF THE LOTTERY PRIZE.
  (8) FROM THE TIME THE DIVISION IS NOTIFIED BY THE  CITY  OF  NEW  YORK
DEPARTMENT  OF  FINANCE OF A TAXPAYER'S LIABILITY FOR A CITY OF NEW YORK
TAX WARRANT JUDGMENT DEBT UNDER  THE  AGREEMENT  PROVIDED  FOR  IN  THIS
SECTION, THE DIVISION, THE STATE TAX COMMISSION AND THE DEPARTMENT SHALL
BE  RELIEVED  FROM  ALL LIABILITY TO SUCH TAXPAYER, ITS ASSIGNS, SUCCES-
SORS, HEIRS OR REPRESENTATIVES FOR  THE  AMOUNT  OF  THE  LOTTERY  PRIZE
CERTIFIED  TO  THE  COMPTROLLER TO BE CREDITED AGAINST THE AMOUNT OF THE
CITY OF NEW YORK TAX WARRANT JUDGMENT DEBT, AND SUCH TAXPAYER SHALL HAVE
NO RIGHT TO COMMENCE A COURT ACTION OR PROCEEDING OR TO ANY OTHER  LEGAL
RECOURSE  AGAINST  THE DIVISION, THE STATE TAX COMMISSION OR THE DEPART-
MENT TO RECOVER SUCH AMOUNTS CERTIFIED TO THE COMPTROLLER TO BE CREDITED
AGAINST THE AMOUNT OF THE CITY OF NEW YORK TAX  WARRANT  JUDGMENT  DEBT;
PROVIDED,  HOWEVER,  THAT  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO
PRECLUDE ANY LEGAL, EQUITABLE, OR ADMINISTRATIVE ACTION BY SUCH  TAXPAY-

A. 5290                             8

ER,  ITS  ASSIGNS, SUCCESSORS, HEIRS OR REPRESENTATIVES ENTITLED TO SUCH
LOTTERY PRIZE AGAINST THE CITY OF NEW  YORK  DEPARTMENT  OF  FINANCE  TO
RECOVER  SUCH  PART  OF  THE  PAYMENT CERTIFIED TO THE COMPTROLLER TO BE
CREDITED  AGAINST THE CITY OF NEW YORK TAX WARRANT JUDGMENT DEBT THAT IS
GREATER THAN THE AMOUNT OF SUCH DEBT AND INTEREST THEREON OWED  BY  SUCH
TAXPAYER  ON  THE  DATE  PAYMENT  IS CREDITED AGAINST THE JUDGMENT DEBT,
TOGETHER WITH INTEREST THEREON.
  (9) THE DIRECTOR, THE COMMISSIONER AND THE CITY OF NEW YORK DEPARTMENT
OF FINANCE SHALL PROMULGATE SUCH RULES AND REGULATIONS AS DEEMED  NECES-
SARY TO CARRY OUT THE PROVISIONS OF THIS SECTION.
  S  1613-E.  CO-OWNERS  OF  LOTTERY PRIZE. (1) A LOTTERY PRIZE SHALL BE
CREDITED AGAINST AMOUNTS DUE FOR PAST-DUE SUPPORT, AND/OR PUBLIC ASSIST-
ANCE BENEFITS, AND/OR PAST-DUE TAXES AND/OR  A  CITY  OF  NEW  YORK  TAX
WARRANT  JUDGMENT  DEBT PURSUANT TO SECTIONS SIXTEEN HUNDRED THIRTEEN-A,
SIXTEEN  HUNDRED  THIRTEEN-B,  SIXTEEN  HUNDRED  THIRTEEN-C  OR  SIXTEEN
HUNDRED  THIRTEEN-D  OF  THIS ARTICLE, AS APPLICABLE, ONLY TO THE EXTENT
THAT THE PRIZE IS TO BE AWARDED TO THE  PRIZE  WINNER  LIABLE  FOR  SUCH
AMOUNTS. IN THE EVENT THAT THE LOTTERY PRIZE IS AWARDED TO MORE THAN ONE
WINNER,  THOSE  PROCEEDS AWARDED TO A WINNER NOT LIABLE FOR SUCH AMOUNTS
SHALL NOT BE CREDITED TOWARD THE AMOUNTS DUE.
  (2) NO WINNER OF A LOTTERY PRIZE MAY ASSIGN THE PROCEEDS OF SUCH PRIZE
IF SUCH ASSIGNMENT WOULD DEFEAT THE EFFECT OF THE PROVISIONS OF SECTIONS
SIXTEEN HUNDRED THIRTEEN-A, SIXTEEN HUNDRED THIRTEEN-B, SIXTEEN  HUNDRED
THIRTEEN-C OR SIXTEEN HUNDRED THIRTEEN-D OF THIS ARTICLE.
  (3) THE DIRECTOR SHALL PROMULGATE SUCH RULES AND REGULATIONS AS DEEMED
NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SECTION.
  S 5. This act shall take effect immediately.