BILL NUMBER: S5201
SPONSOR: SANDERS
 
TITLE OF BILL:
An act to amend the tax law, in relation to permitting a potential
lottery winner who lost their ticket to claim the winning amount
 
PURPOSE OR GENERAL IDEA OF BILL:
This Bill would allow a potential lottery winner to claim the winning
amount by providing proof of purchase of the winning lottery ticket.
 
SUMMARY OF PROVISIONS:
Section 1 amends section 1614 of the tax law to add "lost lottery ticket
claims" to the title of the section.
Section 2 amends section 1614 of the tax law by adding a new subdivision
c which establishes that a lost lottery ticket claim shall be valid if
submitted to the commission with documentary proof of purchase from the
seller within one year from the date of the drawing or from the close of
the game in which a prize was won. The commission shall make payment of
the prize claim upon receiving the proof of purchase.
Section 3 amends section 1609 of the tax law by adding a new paragraph 3
that requires sellers of lottery tickets to retain identifying informa-
tion or proof of sale for at least a year from the date of the applica-
ble drawing or from the close of the applicable game in which a prize
was won. This information or proof from the seller can be used as docu-
mentary proof of purchase in the event of a winning lottery ticket being
lost.
Section 4 is the effective date
 
JUSTIFICATION:
On April 26, 2003, a constituent purportedly won the lottery for $3
million dollars but lost the ticket. A few days later lottery officials
went to the store where the winning ticket was purchased and replaced
the computer operating unit or CPU of the lottery terminal. Since the
CPU was replaced, lottery officials could not verify the winning ticket
was purchased at that location, despite the constituent providing the
lottery agency with documented proof of purchase of the winning ticket.
Consequently, the lottery commission did not recognize him as the winner
of that winning jackpot because of the agency's own action in replacing
the CPU of the terminal at that the location of purchase.
 
PRIOR LEGISLATIVE HISTORY:
2021-2022: A .7318
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
There is no fiscal impact to the State.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S5201: 1614 tax law, 1614(a) tax law, 1609 tax law, 1609(b) tax law