New Jersey Administrative Code › Title 17 - TREASURY - GENERAL › Chapter 20 - RULES OF THE LOTTERY COMMISSION › Subchapter 7 - PAYMENT OF PRIZES › Section 17:20-7.9 - Voluntary assignment of prize pursuant to an appropriate judicial order

Current through Register Vol. 56, No. 14, July 15, 2024
(a) In the case of
				a voluntary assignment of all or part of the right to receive a prize pursuant
				to N.J.S.A. 5:9-13d, the Lottery shall make payment to the person or entity
				designated by the court order provided that a certified copy of the court order
				is filed with the Lottery by personal delivery or mail pursuant to the timeline
				set forth in (b) below, and provided the court order contains the requisite
				statutory findings under N.J.S.A. 5:9-13d.
(b) Sufficient notice shall be provided to
				the Lottery prior to the payment date to allow for a change in the payee. The
				Lottery shall not be responsible for failure to make a payment to an assignee
				if adequate time is not allowed for processing the change. As used in this
				section, "sufficient notice" means: receipt by the Lottery of a certified copy
				of a court order in compliance with (a) above at least 45 days prior to the
				applicable payment date.
(c) Upon
				filing with the Lottery a notarized "consent to release" form signed by the
				assignor authorizing release of the information to an identified third party,
				the Lottery shall review its records for court orders, assignments, levies or
				other rights to receive payments applicable to the involved payment or
				payments. Thereafter, the Lottery shall notify the parties of any court orders,
				assignments, levies or other rights to receive payments to which the payment or
				payments may be subject.
(d) The
				Lottery shall not appear or participate in any hearing unless ordered to do so
				by a court.
(e) It is the
				responsibility of the assignor or the assignor's spouse or any agent who has
				legal authority to exercise substituted judgment on behalf of the assignor or
				spouse to bring to the attention of the court, either by sworn testimony or by
				written declaration under penalty of perjury, any and all liens or offsets
				including, without limitation, tax liabilities and withholdings against prize
				payments. The Lottery shall not pay the assignee an amount in excess of the
				prize payment less such liens, offsets and tax liabilities and withholdings. If
				the amount of the assignment included in the court order is greater than the
				prize payment less all liens, offsets, and tax liabilities and withholdings,
				the Lottery shall not confirm the assignment or make payment to anyone until
				the parties obtain a correct order reflecting the assignor's obligations. If
				the prize payment date is imminent, the Lottery may make payment to the clerk
				of the court of the prize payment, less liens, offsets, tax liabilities and
				withholdings, and less the fee under (g) below for processing the
				assignment.
(f) If the Lottery
				determines that the court order is complete and correct in all respects, it
				shall, pursuant to N.J.S.A. 5:9-13f, send to the parties written confirmation
				of receipt of the court-ordered assignment and its intention to rely thereon in
				making future payments to the assignee(s) named in the court order. Payments
				shall be made in accordance with the court order until either the term of the
				court order ends or a later court order directs payment otherwise. Checks shall
				be made payable to the name of the assignee designated in the court order and
				to no other name.
(g) No change in
				the terms of the assignment pursuant to court order may be made without an
				appropriate court order. A fee of $ 100.00 shall be charged by the Division to
				an assignor for processing each assignment. For each partial assignment, an
				additional fee of $ 50.00 shall be charged to each assignor for each
				installment affected by said partial assignment. A processing fee of $ 50.00
				shall be charged to the assignor in connection with any change in the terms of
				any assignment pursuant to N.J.S.A. 5:9-13p. Payment of any prize, or portion
				thereof, affected by an assignment shall be held in abeyance until the fee
				established by this section is paid. No fee shall be charged for the payment of
				a prize to the estate of a deceased prizewinner pursuant to N.J.S.A.
				5:9-13b.
(h) If a dispute arises
				between the assignor and the assignee or between either the assignor or the
				assignee and a third party, the Lottery may interplead each payment when it
				becomes due, as per the terms of
				17:20-7.5(c)  and
				pay the installment to a court of competent jurisdiction for judicial
				resolution. In the event such action is necessary, the Lottery may recover, as
				part of the fee charged for processing assignments, its actual legal fees and
				costs associated with the interpleader.
(i) Prior to the assignment of any prize
				pursuant to an appropriate judicial order pursuant to this section, the
				appropriate agency shall determine whether the assignor owes any obligation
				that is subject to offset under
				5:9-13.1 to 13.6 and shall provide
				notification of such determination to the Lottery, the parties and the
				court.
(j) No one shall have the
				right to assign prize payments due during the last two years of the annuity
				term.