H.B. 462                                                 VETOES

(III) THE AGENCY SHALL ADOPT REGULATIONS ESTABLISHING THE
CRITERIA TO BE USED IN DETERMINING THE MEANING OF "GOOD CAUSE" FOR
OPPOSING A LOTTERY WINNER'S CLAIM SEEKING AN ASSIGNMENT OF A LOTTERY
PRIZE.

(4) AN ADULT PRIZE WINNER MAY ASSIGN A PRIZE WITHOUT
OBTAINING A COURT ORDER IF THE WINNER SUBMITS EVIDENCE SATISFACTORY TO
THE AGENCY THAT THE WINNER:

(I) IS OF SOUND MIND;

(II) IS NOT ACTING UNDER DURESS; AND

(III) HAS RECEIVED INDEPENDENT FINANCIAL AND TAX ADVICE
CONCERNING THE CONSEQUENCES OF THE ASSIGNMENT.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be
construed only prospectively and may not be applied or interpreted to have any effect on
or application to any litigation pending before the effective date of this Act.

SECTION 3. AND BE IT FURTHER ENACTED, That the State Lottery Agency
shall prepare a report on the feasibility and desirability of adopting a "player's choice"
system for the Lotto game and other games with annuity prizes, whereby players may
elect at the point of purchase an option to receive their prize as a lump-sum payment.
The report shall evaluate the potential effects on game play, revenues, advertising,
taxation of winners, and any other issues that the State Lottery Agency deems
appropriate. The report shall be submitted to the Legislative Policy Committee no later
than January 1, 1995.

SECTION 4. AND BE IT FURTHER ENACTED, That, on or before July 1, 1994, the
State Lottery Agency shall request a ruling from the Internal Revenue Service as to whether the
implementation of the provisions of Section 1 of this Act would constitute a constructive receipt
as provided under 26 CFR § 1.451-2.                                                                         

SECTION 5. AND BE IT FURTHER ENACTED, That Section 4 of this Act shall take
effect June 1, 1994.

SECTION 6. AND BE IT FURTHER ENACTED, That Sections 1 and 2 of this Act
shall take effect October 1, 1994, contingent on the receipt of a ruling by the Internal Revenue
Service pursuant to Section 4 of this Act that states that the implementation of the provisions
of Section 1 of this Act would not constitute a constructive receipt as provided under 26 CFR
§ 1.451-2. If a ruling by the Internal Revenue Service is received after October 1, 1994, that
states that the implementation of the provisions of Section 1 of this Act would not constitute a
constructive receipt, Sections 1 and 2 of this Act shall take effect 30 days after the State Lottery
Agency receives the ruling. If a ruling is received by the State Lottery Agency from the Internal
Revenue Service that states that the implementation of the provisions of Section 1 would
constitute a constructive receipt, Sections 1 and 2 of this Act, with no further action required
by the General Assembly, shall be null and void and of no force and effect.

SECTION 2. 4. 7. AND BE IT FURTHER ENACTED, That Section 3 of this Act
shall take effect October 1, 1994.

- 3844 -