PARRIS N. GLENDENING, Governor

S.B. 205

President of the Senate

State House

Annapolis, Maryland 21401-1991

Dear Mr. President:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed Senate Bill 205.

Senate Bill 205 allows a lottery prize winner to assign their "Lotto" annuity to a third
party, typically a finance company, in exchange for a discounted lump sum payment. The
discounted lump sum would represent what the finance company determined to be the
present value of the annuity. Additionally, the bill prohibits the State Lottery Agency
from opposing a prize winner's motion for a court order seeking an assignment of a
lottery prize, unless the Agency has "good cause" to assert opposition.

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
purpose of the prohibition is "to protect an individual from squandering or losing to
creditors valuable future benefits before receiving them." 61 Opinions of the Attorney
General 541, 543 (1976).

Under the provisions of Senate Bill 205, there are no guidelines or limitations concerning
the number and nature of assignments that could be made by a prize winner, and
accordingly, the Lottery Agency would be required to oversee and administer any number
of assignment scenarios. Multiple assignments and partial assignments would be allowed,
in which case a winner could assign various portions of the prize to numerous finance
companies for any number of years.

Perhaps the most glaring flaw in Senate Bill 205 is that it allows a lottery winner's ability
to assign the annuity to thwart the State's ability to intercept from lottery prizes
arrearages in child support and criminal restitution. By allowing a lottery prize winner to
assign the prize there would be no means by which the State could prevent a winner from
assigning the prize simply to avoid those legal obligations. In recent years, Maryland has
struggled to improve its collection of arrearages in child support. I cannot allow the State
to regress in that area.

For these reasons, I have vetoed Senate Bill 205.

Sincerely,

Parris N. Glendening

Governor

Senate Bill No. 205

AN ACT concerning

State Lottery - Assignment of Prizes

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