CHAPTER Lot 500  RULES FOR PRIZE ASSIGNMENTS

 

Statutory Authority: RSA 284:21-i, II(c)(4)

 

REVISION NOTE:

 

      Pursuant to 2004, 97:1-9, effective 7-10-04, the Sweepstakes Commission was renamed the Lottery Commission.  The rules filed in Chapter Sw 500 by the Sweepstakes Commission before 7-10-04 and by the Lottery Commission after 7-10-04 reflected the title “Sw” of the former Sweepstakes Commission.  They were editorially renumbered as Chapter Lot 500 in November, 2020 to indicate rules of the Lottery Commission. 

 

PART Lot 501  SCOPE

 

          Lot 501.01  Scope.  This chapter shall apply to all prize assignments whether original, modifications, or amendments. This chapter shall not apply to tickets purchased through the iLottery platform.

 

Source.  #7094, eff 9-15-99; ss by #8898, eff 9-15-07; ss by #10987, eff 12-3-15; ss by #14530, eff 3-4-26, EXPIRES: 3-4-36

 

PART Lot 502  DEFINITION

 

          Lot 502.01  Definition.  The following definitions shall apply to this chapter:

 

          (a)  "Commission" means the New Hampshire lottery and gaming commission; and

 

          (b)  “Prize winner” means the person(s) holding a signed or validated lottery ticket sold by the commission.

 

Source.  #7094, eff 9-15-99; ss by #8898, eff 9-15-07; ss by #10987, eff 12-3-15; ss by #14530, eff 3-4-26, EXPIRES: 3-4-36

 

PART Lot 503  ASSIGNABILITY OF WINNING TICKETS

 

          Lot 503.01  Prize Payments.  Payment of any winning ticket shall be made to a person other than the prize winner as follows:

 

          (a)  To the estate of a deceased prize winner upon receipt by the commission of a certified court order appointing an executor or administrator;

 

          (b)  For prize payments of $10,000 or less, to any person to whom the prize winner wishes to assign a prize, so long as the assigned person satisfies all requirements for claiming a prize set forth in Lot 600;

 

          (c)  To any person pursuant to a certified final order of a court of competent jurisdiction, including orders pertaining to:

 

(1)  Claims of ownership in the prize;

 

(2)  Division of marital property in divorce actions;

 

(3)  Bankruptcy;

 

(4)  Child support;

 

(5)  Appointment of a guardian or conservator; and

 

(6)  Distribution of an estate;

 

          (d)  To any person, including a trustee or corporation, for any prize exceeding $10,000, pursuant to a certified final order of a court of competent jurisdiction approving the voluntary assignment of the right to a prize provided that the court affirmatively finds all of the following:

 

(1)  The assignor and the assignee are not represented by the same counsel;

 

(2)  The assignment is in writing and represents the entire agreement between the parties;

 

(3)  The assignment agreement contains the following provisions:

 

a.  The assignor's name, tax identification number, and address;

 

b.  The assignee's name, tax identification number, citizenship or resident alien number, if applicable, and address;

 

c.  The specific prize payment or payment assigned, or any portion thereof, including:

 

1.  The payable due dates and amounts of each payment to be assigned; and

 

2.  The gross amount of the annual payment or payments to be assigned before taxes; and

 

d.  A notice of right to cancel in immediate proximity to the space reserved for the signature of the assignor which shall provide that:

 

1.  The assignor may cancel the assignment without cost until midnight of the fifteenth business day after the day on which the assignor has signed an agreement to assign a prize or portion of a prize;

 

2.  Cancellation occurs when notice of cancellation is given to the assignee;

 

3.  Notice is sufficient if it indicates the intention of the assignor not to be bound; and

 

4.  Notice of cancellation, if given by mail, shall be deemed given when deposited in a mailbox properly addressed and first class mail postage prepaid;

 

(4)  Prior to execution of the assignment agreement, the assignee has provided to the assignor in writing, on a disclosure form separate and apart from the agreement, the following:

 

a.  The aggregate dollar value of payments assigned;

 

b.  The total consideration paid to the assignor by the assignee; and

 

c.  An itemization of all other fees or costs to be paid by the assignor, or deducted from the payment to the assignor;

 

(5)  The assignor has represented to the court in sworn testimony if a personal appearance is required by the court, or in the assignor's written affidavit, sworn to under penalty of false swearing or unsworn falsification pursuant to RSA 641:2 - 3, that:

 

a.  Prior to signing the assignment agreement, the assignor reviewed the agreement and understood its terms and effects;

 

b.  The assignor has consulted with independent financial and tax advisors not referred by or associated with the assignee;

 

c.  The assignor has signed the assignment agreement acting under free will without undue influence or duress;

 

d.  The assignor is not under any obligation to pay child support, or is under such obligation and is in good standing with respect to that obligation or has agreed to a payment plan with the state agency responsible for child support and in full compliance with that plan; and

 

e.  The assigned payment or payments are not subject to any claims, liens, levies, security interests, assignments, or offsets asserted by other persons or the state or has provided the court with written consent of each person having such an interest; and

 

(6)  If the assignor is married, the assignor has submitted to the court a signed and notarized statement of the spouse consenting to the assignment; and

 

          (e)  An assignment in violation of this section shall be invalid. The commission shall not be liable to make payments pursuant to an invalid assignment.

 

Source.  #7094, eff 9-15-99; ss by #8898, eff 9-15-07; ss by #10987, eff 12-3-15; ss by #14530, eff 3-4-26, EXPIRES: 3-4-36

 

          Lot 503.02  Prize as Collateral.

 

          (a)  A prize winner electing to pledge all or any part of a prize as collateral for a loan shall comply with this section to receive prize payments.

 

          (b)  In order to be entitled to receive a prize payment or payments from the commission, a secured party shall obtain a certified final order of a court of competent jurisdiction which:

 

(1)  Adjudges the prize winner in default of a loan agreement with the secured party;

 

(2)  Makes findings with respect to the loan agreements and financing statements constituting the loan transaction which are equivalent to those required pursuant to Lot 503.01(c) and, in addition, a finding that truth-in-lending disclosures set forth in 12 CFR 226.17, 226.18, 226.19, and 226.20 were made; and

 

(3)  Identifies specific payments and awards ownership of such payments to the secured party.

 

          (c)  Nothing in this section shall be construed to:

 

(1)  Create or enlarge a cause of action in favor of a secured party; or

 

(2)  Alter or impair any rule of law applicable to or governing the rights of a debtor under federal or state lending statutes.

 

Source.  #7094, eff 9-15-99; ss by #8898, eff 9-15-07; ss by #10987, eff 12-3-15; ss by #14530, eff 3-4-26, EXPIRES: 3-4-36

 

          Lot 503.03  Filing Requirements.  The assignor shall provide a certified copy of the final court order approving a voluntary assignment in accordance with Lot 503.01 and Lot 503.02, and the assignor’s affidavit to the commission no later than 14 days before the date on which the payment is to be made.

 

Source.  #7094, eff 9-15-99; ss by #8898, eff 9-15-07; ss by #10987, eff 12-3-15; ss by #14530, eff 3-4-26, EXPIRES: 3-4-36

 

          Lot 503.04  Commission Obligations.  Commencing on the thirtieth day after full compliance with Lot 503.01 through Lot 503.03, or after final determination of any motion filed to vacate or modify a final order, the commission shall make prize payments, subject to tax withholding, in accordance with such order.

 

Source.  #7094, eff 9-15-99; ss by #8898, eff 9-15-07; ss by #10987, eff 12-3-15; ss by #14530, eff 3-4-26, EXPIRES: 3-4-36

 

          Lot 503.05  Confidentiality.  Any records resulting from an assignment are public records open to inspection unless exempt by RSA 91-A:5 or other applicable law. Upon written request, the commission shall release the name, town or residence, date of prize, and the gross and net amounts of the annual prize payment of a winner.

 

Source.  #7094, eff 9-15-99; ss by #8898, eff 9-15-07; ss by #10987, eff 12-3-15; ss by #14530, eff 3-4-26, EXPIRES: 3-4-36

 

          Lot 503.06  Suspension Due to Child Support.  Upon receipt of notice, the commission shall suspend payment of winnings in the amount of the child support debt or arrearage and notify the winner.  Child support debts and arrearages of a winner shall be offset by the commission in the manner required by RSA 284:21-v to offset such debts and arrearages.

 

Source.  #7094, eff 9-15-99; ss by #8898, eff 9-15-07; ss by #10987, eff 12-3-15; ss by #14530, eff 3-4-26, EXPIRES: 3-4-36

 

APPENDIX

 

Rule

Specific State/Federal Statutes or Regulations which the Rule Implements

Lot 501

RSA 284:21-a; RSA 284:21-i, II(c)(4)

Lot 502

RSA 284:21-i, II(c)(4)

Lot 503

RSA 284:21-i, II(c)(4); RSA 284:21-v