A09323:Directs that unclaimed or abandoned lottery prizes be used to make state aid payments due for prior years to public schools

BILL NO    A09323


SAME AS    Same as S 782


SPONSOR    Rivera P


COSPNSR


MLTSPNSR


Amd S1614, Tax L


Directs that unclaimed or abandoned lottery prizes be used to make state aid

payments due for prior years to public schools and deletes provisions

allocating such funds to be used for payment of special lotto prizes.


A09323 Actions:

BILL NO    A09323


01/10/2006 referred to ways and means


A09323 Votes:


A09323 Memo:

 BILL NUMBER:  A9323


 TITLE OF BILL :  An act to amend the tax law, in relation to

unclaimed and abandoned prize money


 PURPOSE :  To provide additional funding to the education

department`s general fund.


 SUMMARY OF PROVISIONS :  This bill would amend S1614(a) of the tax

law to provide that any unclaimed prize money shall be paid to the

state comptroller, who will credit such amount to the education

department general fund/aid to localities, local assistance account,

for general support for public schools.


Tax law S1614(b) would also be amended to provide that any abandoned

prize amounts shall be paid to the state comptroller to be credited as

above.


The amendments specifically provide that these moneys are in addition

to moneys otherwise appropriated.


 EXISTING LAW :  S1614(a) currently provides for any unclaimed prize

money to be retained in the lottery prize account, to be used for

payment of special lotto or supplemental lotto prizes, or for

promotional purposes to supplement other games on an occasional basis.

S1614(b) provides for abandoned prize moneys to be paid to the state

Comptroller pursuant to the abandoned property law.


 JUSTIFICATION :  The purpose of the lottery has been to help finance

the state`s education system. Each year, there is approximately

$47,000,000.00 to $68,000,000.00 in unclaimed lottery receipts in New

York State.  By directing these substantial sums of unclaimed New York

lottery funds to the education department, and providing that these

moneys are in addition to those moneys otherwise appropriated, we are

ensuring that the lottery fulfills its intended purpose of assisting

education in New York State.


 LEGISLATIVE HISTORY :

2003-2004 Racing, Gaming & Wagering (S.4438)

2001-2002 Investigations, Taxation & Gov. Operations Committee

(S.3566)


 FISCAL IMPLICATIONS :  Fiscal note on file.


 EFFECTIVE DATE :  Immediately.



S T A T E   O F   N E W   Y O R K

       ________________________________________________________________________


                                         9323


                                 I N  A S S E M B L Y


                                   January 10, 2006

                                      ___________


       Introduced  by  M.  of  A.  P. RIVERA  --  read once and referred to the

         Committee on Ways and Means


       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:


    1    Section 1. Section 1614 of the tax law, as amended by chapter  166  of

    2  the laws of 1991, subdivision a as amended by chapter 170 of the laws of

    3  1994, is amended to read as follows:

    4    S  1614.  Unclaimed and abandoned prize money. a. No prize claim shall

    5  be valid if submitted to the division  following  the  expiration  of  a

    6  one-year  time  period from the date of the drawing or from the close of

    7  the game in which a prize was won, and the person otherwise entitled  to

    8  such  prize shall forfeit any claim or entitlement to such prize moneys.

    9  Unclaimed prize money, plus interest earned thereon, {shall be  retained

   10  in  the lottery prize account to be used for payment of special lotto or

   11  supplemental lotto prizes offered pursuant to the plan or  plans  speci-

   12  fied  in  this  article, or for promotional purposes to supplement other

   13  games on an occasional basis not to  exceed  sixteen  weeks  within  any

   14  twelve  month  period  pursuant  to  the plan or plans specified in this

   15  article.

   16    In the event that the director proposes to change any plan for the use

   17  of unclaimed prize funds or in the event the  director  intends  to  use

   18  funds  in  a  game  other  than the game from which such unclaimed prize

   19  funds were derived, the director of the budget, the chairperson  of  the

   20  senate  finance  committee, and the chairperson of the assembly ways and

   21  means committee shall be notified in writing  separately  detailing  the

   22  proposed changes to any plan prior to the implementation of the changes}

   23  SHALL  BE  PAID  TO  THE  STATE  COMPTROLLER.  THE  STATE COMPTROLLER IS

   24  DIRECTED TO CREDIT SUCH AMOUNT  TO  THE  EDUCATION  DEPARTMENT,  GENERAL

   25  FUND/AID  TO  LOCALITIES,  LOCAL ASSISTANCE ACCOUNT, FOR GENERAL SUPPORT

   26  FOR PUBLIC SCHOOLS, PROVIDED THAT SUCH AMOUNT SHALL BE USED  SOLELY  FOR

   27  THE  PURPOSES OF PROVIDING ADDITIONAL SUPPORT FOR THE PURPOSES SPECIFIED

   28  IN PARAGRAPH C OF SUBDIVISION FIVE OF SECTION THIRTY-SIX HUNDRED FOUR OF


        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                             { } is old law to be omitted.

                                                                  LBD00515-01-5


       A. 9323                             2


    1  THE  EDUCATION  LAW,  BEYOND  MONEYS  OTHERWISE  APPROPRIATED  FOR  SUCH

    2  PURPOSES.

    3    b.  The division may determine that a prize has been abandoned whenev-

    4  er  more  than  eighteen months have elapsed since a prize payment check

    5  was mailed to the last known address of the  claimant  and  either  such

    6  check  has been returned undelivered by the United States postal service

    7  and the claimant cannot be located or such check has not  been  returned

    8  undelivered  and has not been presented for payment. Any prize so deter-

    9  mined to have been abandoned shall be  paid  to  the  state  comptroller

   10  {pursuant  to section thirteen hundred fifteen of the abandoned property

   11  law}.  NOTWITHSTANDING ANY PROVISION OF LAW, RULE OR REGULATION  TO  THE

   12  CONTRARY,  THE STATE COMPTROLLER IS DIRECTED TO CREDIT SUCH PRIZE AMOUNT

   13  THAT HAS BEEN DETERMINED TO HAVE BEEN  ABANDONED,  AND  ANY  SUCH  PRIZE

   14  AMOUNTS  DETERMINED  TO  HAVE BEEN ABANDONED WHICH HAVE BEEN PAID TO THE

   15  STATE COMPTROLLER PURSUANT TO SECTION THIRTEEN HUNDRED  FIFTEEN  OF  THE

   16  ABANDONED PROPERTY LAW, TO THE EDUCATION DEPARTMENT, GENERAL FUND/AID TO

   17  LOCALITIES,  LOCAL  ASSISTANCE  ACCOUNT,  FOR GENERAL SUPPORT FOR PUBLIC

   18  SCHOOLS, PROVIDED THAT SUCH AMOUNT SHALL BE USED SOLELY FOR THE PURPOSES

   19  OF PROVIDING ADDITIONAL SUPPORT FOR THE PURPOSES SPECIFIED IN  PARAGRAPH

   20  C  OF  SUBDIVISION FIVE OF SECTION THIRTY-SIX HUNDRED FOUR OF THE EDUCA-

   21  TION LAW, BEYOND MONEYS OTHERWISE APPROPRIATED FOR SUCH PURPOSES.

   22    S 2. This act shall take effect immediately.