2014 -- S 2954

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LC005147

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - STATE LOTTERY

     Introduced By: Senator Daniel DaPonte

     Date Introduced: May 01, 2014

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 42-61 of the General Laws entitled "State Lottery" is hereby

amended by adding thereto the following section:

     42-61-7.3. Payment of prizes in excess of six hundred dollars ($600) - Setoff for

Medical Assistance overpayment. -- Notwithstanding the provisions of §§ 42-61-7, 42-61-7.1

and 42-61-7.2 relating to assignment of prizes and setoff for child support debts, and benefit

overpayments, and unpaid taxes, the following setoff provisions shall apply to the payment of any

prizes or winning ticket in excess of six hundred dollars ($600).

     (1) With respect to a person entitled to receive the prize or winning ticket who has been

overpaid medical assistance by the executive office of health and human services in excess of six

hundred dollars ($600), as evidenced by the executive office of health and human services

pursuant to § 42-61-7.3(3), the lottery director:

     (i) Shall setoff against the amount due to that person after state and federal tax

withholding an amount up to the balance of the medical assistance overpayment owed as

evidenced by the executive office of health and human services pursuant to § 42-61-7.3(3), and

the director shall make payment of this amount directly to the executive office of health and

human services; and

     (ii) Shall pay to that person the remaining balance of the prize or winning ticket amount,

if any, after reduction of the amount setoff above for the medical assistance overpaid and any

other amounts setoff pursuant to applicable laws. If in any instance, the lottery director has

received notice from more than one claimant agency, the claim for child support arrearage(s)

owed to the department of human services shall receive first priority, the claim for benefit

overpayments and interest owed to the department of labor and training the second priority, the

claim for taxes owed to the tax administrator the third priority, and the claim for medical

assistance owed to the executive office of health and human services the fourth priority. At the

time that the remaining balance of the prize or winning ticket amount, if any, is paid to the

person, the lottery will advise the person of the amounts of the setoffs that were made against the

prize or winning ticket amount.

     (2) The lottery director shall be discharged of all further liability upon payment of a prize

or winning ticket pursuant to this section.

     (3) The executive office of health and human services shall periodically within each year

furnish the lottery director with a list or compilation of names of individuals, together with any

other identifying information in a form that the lottery director shall require, who as of the date of

the list or compilation, have been overpaid for medical assistance in excess of six hundred dollars

($600). Any information identifying a medical assistance recipient shall be subject to

confidentiality provisions to the full extent required under federal and state law; provided,

however, the lottery shall be entitled to receive and use such information provided to it by the

executive office of health and human services to perform its obligations under this section.

     (4) Any party aggrieved by any action taken under this section may, within thirty (30)

days of the withholding of the payment by the lottery director, seek a review with the executive

office of health and human services.

     SECTION 2. This act shall take effect on January 1, 2015.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT - STATE LOTTERY

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     This act would require the lottery director to offset from lottery winnings in excess of six

hundred dollars ($600), money owed to the executive office of health and human services for

medical assistance overpayments.

     This act would take effect on January 1, 2015.

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