2023 Louisiana Laws › Revised Statutes › Title 47 - Revenue and Taxation › §47:9027. Assignment of deferred lottery annuity prizes

RS 47:9027 - Assignment of deferred lottery annuity prizes
A. Under an appropriate judicial order, any prize, or any portion of a prize, or any right of any person to a prize awarded, payable by the corporation in deferred annuity payments, may be paid to any person other than the winner.
B. The right of a person to a prize payable by the corporation in deferred annuity payments may be voluntarily assigned as a whole or in part, if the assignment is made to a person designated in accordance with an order of the Nineteenth Judicial District Court of East Baton Rouge Parish. Any such order shall be deemed an appropriate judicial order.
C. On the filing by the assignor or the assignee in the Nineteenth Judicial District Court of East Baton Rouge Parish of a petition seeking approval of a voluntary assignment, the court shall issue an order approving a voluntary assignment and directing the corporation to make prize payments as a whole or in part to the assignee if the court finds all of the following:
(1) The assignment is in writing, is executed by the assignor, and is by its terms subject to the laws of this state.
(2) The assignor provides a sworn affidavit attesting that the assignor is of sound mind, is in full command of the assignor's faculties, and is not acting under duress.
(3) The assignor has been advised about the assignment by an independent attorney who is not related to and not compensated by the assignee or an affiliate of the assignee.
(4) The assignor understands that the assignor will not receive the prize payments or parts of payments during the years assigned.
(5) The assignor understands and agrees, with regard to the assigned payments, that the corporation, board of directors, and officials and employees of the corporation shall have no further liability or responsibility for making the assigned payments.
(6) The assignee provides the assignor with a one-page disclosure statement that sets forth in bold type not less than fourteen points in size the payments being assigned by amount and payment date, the purchase price, the rate of discount to present value, assuming daily compounding and funding on the contract date, and any origination or closing fee that will be charged to the assignor.
(7) The contract of assignment expressly states that the assignor has three business days after signing the contract to cancel the assignment.
(8) The assignor and assignee do not seek assignment for purposes of evading creditors, judgments, or obligations of child support.
(9) The assignor and assignee have certified that neither of them has a child support obligation or, if either does have a child support obligation, that no arrearage is due, and that neither the assignor nor the assignee is obligated to repay any public assistance benefits or overpayment of child support.
(10) The petition required by this Subsection, shall be accompanied by a certification from a representative of the Department of Children and Family Services, office of children and family services, stating any of the following:
(a) That the assignor or assignee does not currently have a child support arrearage, or the assignor or assignee does not owe an obligation to repay any public assistance benefits or an overpayment of child support benefits to the Department of Children and Family Services.
(b) That the assignor or assignee does currently have a child support obligation and that no arrearage is due to the Department of Children and Family Services.
(c) That the assignor or assignee does currently have a child support arrearage, or the assignor or assignee does owe an obligation to repay any public assistance benefits or an overpayment of child support benefits to the Department of Children and Family Services. The certification from the Department of Children and Family Services, office of children and family services, shall be provided to the assignor and the assignee promptly upon the request of the assignor or the assignee, and in no event more than ten business days after said request is received by the Department of Children and Family Services, office of children and family services.
D. Written notice of the petition and proposed assignment and any court hearing concerning the petition and proposed assignment shall be served on the corporation, which shall be made a party thereto.
E.(1) The corporation, not later than ten days after receiving a certified copy of a court order approving a voluntary assignment, shall send the assignor and the assignee written confirmation of both of the following:
(a) The court-approved assignment.
(b) The intent of the corporation to rely on the assignment in making payments to the assignee named in the order free from any attachments, garnishments, or executions.
(2) The corporation shall thereafter make payments in accordance with the assignment.
F.(1) Neither the state nor the corporation, its board of directors, nor any of its officials or employees shall be liable in any manner for any assigned payments made by the corporation pursuant to this Section.
(2) The assignor and assignee shall hold harmless and indemnify the state, the corporation, its board of directors, and its employees and agents from all claims, suits, actions, complaints, or liabilities related to the assignment.
G. The corporation may establish a reasonable fee to defray administrative expenses associated with assignments made under this Section, including a processing fee imposed by a private annuity provider. The amount of the fee shall reflect the direct and indirect costs of processing assignments.
H. The assignee shall notify the corporation of its business location and mailing address for payment purposes and of any change in location or address during the entire course of the assignment.
I. A court order or a combination of court orders issued pursuant to this Section may not require the corporation to divide a single prize payment among more than three different persons.
J. If the Internal Revenue Service or a court of competent jurisdiction issues a determination letter, revenue ruling, or other public document declaring that the voluntary assignment of prizes will affect the federal income taxation treatment of lottery prizewinners who do not assign their prizes, the following shall occur:
(1) Within fifteen days after the corporation receives the letter, ruling, or other document, the president of the corporation shall file a copy of it with the attorney general; and
(2) A court shall not issue an order authorizing a voluntary assignment under this Section.
K. This Section shall prevail over any inconsistent provision in R.S. 10:9-101 through 406 of the Louisiana Commercial Laws.
Acts 2007, No. 139, §1.