[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
90_HB1087sam001
LRB9004342LDmbam01
1 AMENDMENT TO HOUSE BILL 1087
2 AMENDMENT NO. . Amend House Bill 1087 on page 1,
3 line 2, by replacing "Section 7.12" with "Sections 7.12 and
4 13 and adding Section 13.1"; and
5 on page 1, line 6, by replacing "Section 7.12" with "Sections
6 7.12 and 13 and adding Section 13.1"; and
7 on page 1, by inserting after line 16 the following:
8 "(20 ILCS 1605/13) (from Ch. 120, par. 1163)
9 Sec. 13. No prize, nor any portion of a prize, nor any
10 right of any person to a prize awarded shall be assignable,
11 except as provided in Section 13.1. Any prize, or portion
12 thereof remaining unpaid at the death of a prize winner, may
13 be paid to the estate of such deceased prize winner, or to
14 the trustee under a revocable living trust established by the
15 deceased prize winner as settlor, provided that a copy of
16 such a trust has been filed with the Department along with a
17 notarized letter of direction from the settlor and no written
18 notice of revocation has been received by the Department
19 prior to the settlor's death. Following such a settlor's
20 death and prior to any payment to such a successor trustee,
21 the Director shall obtain from the trustee and each trust
22 beneficiary a written agreement to indemnify and hold the
-2- LRB9004342LDmbam01
1 Department harmless with respect to any claims that may be
2 asserted against the Department arising from payment to or
3 through the trust. Notwithstanding any other provision of
4 this Section, any person pursuant to an appropriate judicial
5 order may be paid the prize to which a winner is entitled,
6 and all or part of any prize otherwise payable by State
7 warrant under this Section shall be withheld upon
8 certification to the State Comptroller from the Illinois
9 Department of Public Aid as provided in Section 10-17.5 of
10 The Illinois Public Aid Code. The Director shall be
11 discharged of all further liability upon payment of a prize
12 pursuant to this Section.
13 (Source: P.A. 85-1224.)
14 (20 ILCS 1605/13.1 new)
15 Sec. 13.1. Assignment of prizes.
16 (a) The right of a person to receive payments due under
17 a prize that is paid in installments over time by the
18 Department may be voluntarily assigned, in whole or in part,
19 if the assignment is made to a person or entity designated
20 pursuant to an order of the circuit court located in the
21 county in which the assigning winner resides or in which the
22 Department's headquarters are located.
23 A court shall issue an order approving a voluntary
24 assignment and directing the Department to direct prize
25 payments in whole or in part to the assignee if, and only if,
26 all of the following conditions have been met:
27 (1) the assignment is in writing, executed by the
28 assignor, and by its terms, subject to the laws of this
29 State;
30 (2) the assignor provides a sworn affidavit
31 attesting that:
32 (A) the assigning winner is of sound mind, in
33 full command of his or her faculties, and not acting
-3- LRB9004342LDmbam01
1 under duress;
2 (B) the assigning winner has been advised
3 regarding the assignment by his or her own
4 independent legal counsel and has had the
5 opportunity to receive independent financial and tax
6 advice concerning the effects of the assignment;
7 (C) the assigning winner understands that he
8 or she will not receive the prize payments (or
9 portions thereof) for the years assigned;
10 (D) the assigning winner understands and
11 agrees that, with regard to the assigned payments,
12 the State, the Department, and their officials and
13 employees will have no further liability or
14 responsibility to make the assigned payments to the
15 assignor;
16 (E) the assigning winner has been provided
17 with a one page written disclosure statement setting
18 forth (in bold type, 14 point or larger) the
19 payments being assigned (by amounts and payment
20 dates), the purchase price being paid, the rate of
21 discount to present value, assuming daily
22 compounding and funding on the contract date, and
23 the amount, if any, of any origination or closing
24 fees that will be charged to the assigning winner;
25 and
26 (F) the assigning winner was advised in
27 writing, at the time he or she signed the assignment
28 contract, that he or she had the right to cancel the
29 contract without any further obligation within 3
30 business days following the date on which the
31 contract was signed.
32 (b) A voluntary assignment shall not include or cover
33 payments or portions of payments that are subject to offset
34 on account of a defaulted or delinquent child support
-4- LRB9004342LDmbam01
1 obligation, unless appropriate provision is made in the order
2 to satisfy the obligations giving rise to the offset.
3 (c) The State, the Department, and their respective
4 officials and employees shall be discharged of all further
5 liability upon payment of a prize pursuant to an order
6 entered under this Section.
7 (d) The Department may establish a reasonable fee to
8 defray administrative expenses associated with assignments
9 made pursuant to this Section, including the cost to the
10 State or the Department of any processing fee that may be
11 imposed by a private annuity provider. The fee amount shall
12 reflect the direct and indirect costs associated with
13 processing the assignments.
14 (e) Notwithstanding any other provision of this Section,
15 no prizewinner shall have the right to assign prize payments
16 upon:
17 (1) The issuance by the United States Internal
18 Revenue Service (IRS) of a technical rule letter, revenue
19 ruling, or other public ruling of the IRS in which the
20 IRS determines that, based upon the right of assignment
21 provided in this Act, a lottery prizewinner who does not
22 assign prize payments would be subject to an immediate
23 income tax liability for the value of the entire prize
24 rather than annual income tax liability for each
25 installment when paid.
26 (2) The issuance by a court of competent
27 jurisdiction of a published decision holding that, based
28 upon the right of assignment provided in this Section, a
29 lottery prizewinner who does not assign prize payments
30 pursuant to this Section would be subject to an immediate
31 income tax liability for the value of the entire prize
32 rather than annual income tax liability for each
33 installment when paid.
34 Upon receipt of a letter or ruling from the IRS or a
-5- LRB9004342LDmbam01
1 published decision of a court of competent jurisdiction, as
2 specified in item (1) or (2) of this subsection (e), the
3 Director shall immediately file a copy of that letter,
4 ruling, or published decision with the Secretary of State.
5 Immediately upon the filing by the Director of a letter,
6 ruling, or published decision with the Secretary of State, a
7 prizewinner shall be ineligible to assign a prize pursuant to
8 this Section.
9 The changes made by this amendatory Act of 1997 shall not
10 apply unless the national office of the Internal Revenue
11 Service has ruled that those changes will not constitute
12 constructive receipt by any prize winner prior to an actual
13 assignment being made under this Section.".