WILLIAM DONALD SCHAEFER, Governor                       H.B. 462

(2) MAY NOT IMPOSE A SANCTION UNDER THE STATE SUBSTANCE
ABUSE POLICY AGAINST AN INDIVIDUAL WHO IS NOT IN A SENSITIVE CLASS OR
POSITION FOR A CONVICTION FOR AN OFFENSE THAT OCCURRED OUTSIDE THE
COURSE AND SCOPE OF THE INDIVIDUAL'S STATE EMPLOYMENT.

(C) AN APPOINTING AUTHORITY MAY IMPOSE ANY SANCTION UNDER THE
STATE ABUSE POLICY AGAINST AN INDIVIDUAL WHO IS NOT IN A SENSITIVE CLASS
OR POSITION FOR A CONVICTION FOR AN OFFENSE THAT OCCURRED DURING THE
COURSE AND SCOPE OF EMPLOYMENT.

SECTION 2.—AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1994.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act is an emergency measure, is
necessary for the immediate preservation of the public health and safety, has been passed by a
yea and nay vote supported by three-fifths of all the members elected to each of the two Houses
of the General Assembly, and shall take effect from the date it is enacted.

May 26, 1994

The Honorable Casper R. Taylor, Jr.
Speaker of the House of Delegates
State House
Annapolis, Maryland 21401

Dear Mr. Speaker:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed House Bill 462.

House Bill 462 would prohibit the Maryland State Lottery Agency from opposing a lottery
prize winner's claim for a court order seeking an assignment of a lottery prize, unless the
Agency has "good cause" to assert opposition. The effect of this prohibition would be to
allow lottery prize winners to assign their "Lotto" annuity to a third party, typically a
finance company, in exchange for a discounted lump sum payment, which would
represent what is determined by the assignee to be the present value of the annuity. The
bill further would direct the Lottery Agency to seek a ruling from the Internal Revenue
Service (IRS) as to whether the provisions of House Bill 462 would invoke the doctrine of
"constructive receipt." The Agency would be required to prepare a report to the
Legislative Policy Committee concerning the feasibility of establishing a "player's choice"
system for administering the "Lotto" game and other games with annuity prizes. The bill
contains a contingency provision that would nullify the prohibition against the Lottery
seeking to bar assignment of annuity prizes if the IRS determines that the provisions of
House Bill 462 constitute constructive receipt.

Under current law, a lottery prize may not be assigned to a person other than the winner,
except pursuant to a court order. In practice, this occurs most often as a partial
assignment, usually the result of a divorce proceeding. The anti-assignment provision of
the Maryland lottery law is similar to provisions found in lottery laws in other states. The

- 3841 -