N.Y. Tax Law § 1613-b: Crediting of lottery prizes against public assistance benefits

§ 1613-b. Crediting of lottery prizes against public assistance

benefits. (1) Notwithstanding any limitations in section one hundred

four of the social services law, the director of the lottery, on behalf

of the division 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 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 issuance of such prize of which the director of the lottery has been

notified 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.

(2) Such agreement shall include: (a) the procedure under which the

office of temporary and disability assistance and the division of the

lottery shall exchange information concerning lottery winnings and

persons liable for receipt of public assistance within the previous ten

years;

(b) subject to the approval of the director of the budget the

procedure for reimbursement of the division of the lottery by the office

of temporary and disability assistance for the additional cost of

carrying out the procedures authorized by this section;

(c) provision for crediting lottery prizes to past-due support in

accordance with subdivisions ten and eleven of section one hundred

eleven-b of the social services law prior to effecting any such credit

against public assistance; and

(d) such other matters as the parties to such agreement shall deem

necessary to carry out the provisions of this section.

(3) Prior to awarding any lottery prize of six hundred 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 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; 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.

(4) The division of the lottery shall certify to the comptroller the

total amount of the lottery prize winning to be credited against public

assistance benefits owed to the state and the remainder of such prize

winning to be awarded to the prize winner.

(5) The division of the lottery shall notify the prize winner in

writing of the total amount of the lottery prize winning to be credited

against public assistance benefits and the remainder of such prize

winning to be awarded to the prize winner. Such notice shall further

advise the prize winner that the office of temporary and disability

assistance shall provide separate notice, in writing, to the prize

winner of the procedure for and time frame by which the prize winner may

contest such crediting.

(6) The office of temporary and disability assistance shall notify the

prize winner in writing, of the amount of such prize winning to be

credited against public assistance benefits and the procedure and time

frame by which the prize winner may contest such crediting. Such

procedure shall include the address and telephone number of the office

of temporary and disability assistance and who the prize winner may

contact with respect to correction of any error in such crediting

concerning such individual's liability for public assistance benefits or

with respect to payment of such liability.

(7) From the time the division of the lottery is notified by the

office of temporary and disability assistance of an individual's

liability for public assistance benefits under the agreement provided

for in this section, the division of the lottery shall be relieved from

all liability to such individual, their assigns, successors, heirs or

representatives for the amount of any lottery prize winning of six

hundred dollars or more certified to the comptroller to be credited

against public assistance benefits and such individual shall have no

right to commence a court action or proceeding or to any other legal

recourse against the division of the lottery to recover such lottery

winnings certified to the comptroller to be credited against public

assistance benefits. Provided, however, nothing herein shall be

construed to prohibit such individual from proceeding against the office

of temporary and disability assistance to recover that part of such

lottery winnings thereon so certified to the comptroller to be credited

against public assistance benefits which is greater than the amount of

public assistance benefits paid to such individual within ten years of

the date of such certification.

(8) The division of the lottery shall promulgate such rules and

regulations as it deems necessary to carry out the provisions of this

section.