N.J. Admin. Code § 17:20-7.9

Current through Register Vol. 56, No. 18, September 16, 2024

Section 17:20-7.9 - Voluntary assignment of prize pursuant to an appropriate judicial order

(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.

N.J. Admin. Code § 17:20-7.9

New Rule, R.2001 d.291, effective 8/20/2001.
See: 33 N.J.R. 2019(a), 33 N.J.R. 2822(a).