SENATE, No. 1286

STATE OF NEW JERSEY

INTRODUCED JUNE 3, 1996

By Senators CAFIERO, EWING and Bryant

An Act concerning lottery prizes and amending and supplementing P.L.1991, c.384.

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

    1. Section 1 of P.L.1991, c.384 (C.5:9-13.1) is amended to read as follows:

    1. The Director of the Division of the State Lottery in the Department of the Treasury [and], the Director of the Division of [Economic Assistance] Family Development in the Department of Human Services and the Clerk of the Superior Court of the State of New Jersey shall initiate an ongoing data exchange in the Office of Telecommunications and Information Systems in the Department of the Treasury before a payment is made of a State lottery prize in excess of [$2,500] $1,000.

(cf. P.L.1991, c.384, s.1)

    2. Section 2 of P.L.1991, c.384 (C.5:9-13.2) is amended to read as follows:

    2. The Director of the Division of [Economic Assistance] Family Development and the Clerk of the Superior Court, as appropriate, shall periodically supply the Office of Telecommunications and Information Systems with a list of:

    a. those individuals in arrears of a court ordered child support obligation; [and]

    b. those former recipients of Aid to Families with Dependent Children, pursuant to P.L.1959, c.86 (C.44:10-1 et seq.), food stamp benefits issued pursuant to Pub.L. 95-113, Title XIII (7 U.S.C. §2011 et seq.), or low-income home energy assistance benefits issued pursuant to Pub.L. 97-35, Title XXVI (42 U.S.C. §8621 et seq.) who incurred an overpayment which has not been repaid; and

    c. those individuals in arrears of a court ordered alimony payment.

(cf. P.L.1991, c.384, s.2)

    3. Section 4 of P.L.1991, c.384 (C.5:9-13.4) is amended to read as follows:

    4. The Office of Telecommunications and Information Systems shall cross check the lottery list with the data supplied by the Director of the Division of [Economic Assistance] Family Development and the Clerk of the Superior Court for a social security number match. If a match is made, the Office of Telecommunications and Information Systems shall notify the Division of [Economic Assistance] Family Development and the Clerk of the Superior Court, as appropriate.

(cf. P.L.1991, c.384, s.4)

    4. Section 5 of P.L.1991, c.384 (C.5:9-13.5) is amended to read as follows:

    5. If a lottery prize claimant is in arrears of a child support order, an alimony order, or is a former recipient of Aid to Families with Dependent Children, food stamp benefits or low-income home energy assistance benefits who has incurred an overpayment which has not been repaid, the Division of [Economic Assistance] Family Development or the Clerk of the Superior Court, as appropriate, shall promptly notify the Department of the Treasury and the Division of the State Lottery of the claimant's name, address, social security number and amount due on an arrears child support order, an arrears alimony order or the amount due on an overpayment. The Department of the Treasury shall withhold this amount from the pending lottery payment and transmit same to the Department of Human Services, the Clerk of the Superior Court or appropriate county probation department, as the case may be, in accordance with regulations promulgated by the State Treasurer.

(cf. P.L.1991, c.384, s.5)

    5. Section 6 of P.L.1991, c.384 (C.5:9-13.6) is amended to read as follows:

    6. The county welfare agency which provided the public assistance benefits, the court which issued the alimony order, or the county probation office, acting as agent for the child support payee, shall have a lien on the proceeds of the State lottery prize in an amount equal to the amount of child support arrearage, the amount of alimony arrearage, or the amount of overpayment incurred.

    The lien imposed by this act shall be enforceable in the Superior Court.

(cf. P.L.1991, c.384, s.6)

    6. Section 9 of P.L. 1991, c. 384 (C. 5:9-13.9) is amended to read as follows:

    9. The costs associated with or necessary for the implementation of P.L.1991, c.384 (C.5:9-13.1 et seq.) shall be borne by the Division of [Economic Assistance] Family Development in the Department of Human Services and the Administrative Office of the Courts.

(cf. P.L.1991, c.384, s.9)

    7. (New section) The alimony collected as a result of the data exchange between the Division of State Lottery and the Clerk of the Superior Court shall be distributed only after any child support arrearage is collected from the lottery prize and is distributed to the custodial parent.

    8. This act shall take effect immediately.

STATEMENT

    This bill amends P.L.1991, c.384 (C.5:9-13.1 et seq.) to allow the withholding of lottery prizes to satisfy alimony arrearages. The data exchange between the Department of the Treasury and the Clerk of the Superior Court would begin at a threshold of $1,000. The Clerk of the Superior Court would be required to provide the Office of Telecommunications and Information Services with the names of individuals who are behind in alimony payments, social security numbers and the amount of the alimony arrearage. This information would then be cross-referenced with the list of prize winners generated by the State Lottery. If a match is made, the Department of the Treasury would be required to notify the Superior Court and withhold the amount owed from the pending lottery award.

    The bill also updates references to the Division of Economic Assistance whose name has been changed to the Division of Family Development.

    Finally, the bill requires that the alimony collected as a result of the data exchange be distributed only after any child support arrearage is collected from a lottery prize and is distributed to the custodial parent.

Provides lottery prizes over $1,000 be offset to satisfy alimony arrearages.