ASSEMBLY, No. 1740

 

STATE OF NEW JERSEY

 

INTRODUCED MARCH 25, 1996

 

 

By Assemblyman GARCIA

 

 

An Act concerning the State lottery and supplementing P.L.1970, c.13 (C.5:9-1 et seq.).

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. A person entitled to a lottery prize of $50,000 or more on a winning ticket or share shall have the option of receiving payment of the prize either in a lump sum or by periodic payments. The periodic payments shall be made according to the life expectancy of the person, pursuant to standard mortality tables for life expectancy, and shall be in an amount equal to the comminuted or present value of the prize as of the date of the payment measured by the present value of an annuity contract purchased by the Division of the State Lottery which would result in the payment of the prize on an annual basis over a period of twenty years. The division shall be discharged of all further liability upon the payment of the prize in a lump sum or, if the person chooses periodic payments, upon the purchase and delivery of an annuity contract.

 

    2. The provisions of this act shall not be exercisable by the estate or assignee of any person entitled to a prize of $50,000 or more on a winning ticket or share.

 

    3. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill provides that a person entitled to a lottery prize of $50,000 or more on a winning ticket or share shall have the option of receiving payment of the prize either in a lump sum or by periodic payments. The periodic payments shall be made according to the life expectancy of the person, pursuant to standard mortality tables for life expectancy, and shall be in an amount equal to the comminuted or present value of the prize as of the date of the payment measured by the present value of an annuity contract purchased by the Division of the State Lottery which would result in the payment of the prize on an annual basis over a period of twenty years. The division shall be discharged of all further liability upon the payment of the prize in a lump sum or, if the person chooses periodic payments, upon the purchase and delivery of an annuity contract. It should be noted that a person choosing a lump sum payment may receive a lesser total amount than a person choosing periodic payments.

 

 

                             

 

Provides for payment of lottery prizes of $50,000 or more either in a lump sum or by periodic payments at the discretion of the prize winner.