2023 -- H 5968

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- STATE LOTTERY

     Introduced By: Representatives Lima, Fenton-Fung, Vella-Wilkinson, and Costantino

     Date Introduced: March 01, 2023

     Referred To: House State Government & Elections

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-61-7.1 of the General Laws in Chapter 42-61 entitled "State

Lottery" is hereby amended to read as follows:

     42-61-7.1. Payment of prizes in excess of six hundred dollars ($600) — Setoff for child

support debts and benefit of overpayments.

     (a) Notwithstanding the provisions of § 42-61-7 relating to assignment of prizes, 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 an

unpaid child support order(s) arrearage(s) in excess of five hundred ($500), as provided by the

department pursuant to § 42-61-7.1(3), or owes any sum in excess of five hundred dollars ($500)

for benefit overpayments and interest to the department of labor and training determined to be

recoverable under the provisions of chapters 39 — 44 of title 28, the lottery director:

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

an amount up to the balance of the child support arrearage(s), and benefit overpayments and interest

owed to the department of labor and training, and the director shall make payment of this amount

directly to the Rhode Island family court in the case of child support arrearage(s) which shall

deposit the amount set off into the registry of the family court for a period of forty-five (45) days,

or if an application for review has been filed pursuant to § 27-57-1(d), until final disposition of the

application until further order of the court and in the case of benefit overpayments and interest

owed the director shall transfer the amounts owed to the department of labor and training; and

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

any, after reduction of the amount set off above for child support and benefit overpayments and

interest owed. If any instance, the lottery director has received notice from more than one claimant

agency, the claim for child support arrearage(s) by the department of human services shall receive

first priority and the claim for benefit overpayments and interest owed by the department of labor

and training the second priority.

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

winning ticket pursuant to this section.

     (3) The department of human services shall periodically within each year furnish the

director with a list or compilation of names of individuals, together with any other identifying

information and in a form that the director shall require, who as of the date of the list or compilation,

have an unpaid child support order arrearage in excess of five hundred dollars ($500) as shown on

the Rhode Island family court degrees department of human services child support enforcement

computer system (“CSE system”). For the purposes of this section, the terms used in this section

shall be given the meaning and definitions specified in § 15-16-2.

     (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 judicial review in the family court,

in the case of withholding for child support or in the district court in the case of benefit

overpayments and interest owed, which may, in its discretion, issue a temporary order prohibiting

the disbursement of funds under this section, pending final adjudication.

     (5) The department of labor and training shall periodically within each year furnish the

director with a list or compilation of names of individuals, together with any identifying

information and in any form that the director requires, who as to the date of the list or compilation,

have unpaid benefit overpayments and interest in excess of five hundred dollars ($500) determined

to be recoverable under the provisions of chapters 39 — 44 of title 28.

     (b) The state lottery shall not release the personal identification information of the winner

to the public for any payment in excess of six hundred dollars ($600) without the written consent

of the prize winner. Any record containing the personal identification of the prize winner shall not

be subject to the provisions of chapter 2 of title 38 and shall not be deemed a public record.

     [See § 12-1-15 of the General Laws.]

     SECTION 2. Section 42-61-7.2 of the General Laws in Chapter 42-61 entitled "State

Lottery" is hereby amended to read as follows:

     42-61-7.2. Payment of prizes in excess of six hundred dollars ($600) — Setoff for

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unpaid taxes.

     (a) Notwithstanding the provisions of § 42-61-7 and § 42-61-7.1 relating to assignment of

prizes and setoff for child support debts and benefit overpayments, 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 unpaid

taxes owed to the tax administrator in excess of six hundred dollars ($600), as evidenced by the tax

administrator pursuant to subsection (3) of this section, 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 unpaid taxes owed as evidenced by the tax administrator

pursuant to subsection (3) of this section, and the director shall make payment of this amount

directly to the tax administrator; 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 taxes owed. 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 (1st) priority, the claim for benefit

overpayments and interest owed to the department of labor and training the second (2nd) priority,

and the claim for taxes owed to the tax administrator the third (3rd) priority.

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

winning ticket pursuant to this section.

     (3) The tax administrator shall periodically within each year furnish the director with a list

or compilation of names of individuals, together with any other identifying information and in a

form that the director shall require, who as of the date of the list or compilation, have unpaid taxes

in excess of six hundred dollars ($600).

     (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 tax administrator,

who may, in his or her discretion, issue a temporary order prohibiting the disbursement of funds

under this section, pending final decision.

     (b) The state lottery shall not release the personal identification information of the winner

to the public for any payment in excess of six hundred dollars ($600) without the written consent

of the prize winner. Any record containing the personal identification of the prize winner shall not

be subject to the provisions of chapter 2 of title 38 and shall not be deemed a public record.

     SECTION 3. This act shall take effect upon passage.

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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 prohibit the state lottery from releasing to the public the personal

identification information of any prize winner of an amount in excess of six hundred dollars ($600)

without the written consent of the prizewinner. The act would also provide that any document

containing the personal identification information would not be subject to the access to public

records provisions and would not be a public record.

     This act would take effect upon passage.

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