PARRIS N. GLENDENING, Governor                             S.B. 205

(II)     WHEN A LOTTO WINNER SEEKS A COURT ORDER ALLOWING
AN ASSIGNMENT OF THE WINNER'S PRIZE, THE WINNER SHALL FILE WITH THE
COURT AN AFFIDAVIT STATING THAT THE WINNER:

1.       IS OF SOUND MIND;

2.       IS NOT ACTING UNDER DURESS; AND

3.       HAS RECEIVED INDEPENDENT FINANCIAL AND TAX
ADVICE CONCERNING THE CONSEQUENCES OF THE ASSIGNMENT.

(III)   THE AGENCY MAY NOT, WITHOUT GOOD CAUSE, OPPOSE IN
COURT A LOTTO WINNER'S PETITION FOR A COURT ORDER UNDER THIS
PARAGRAPH.

(IV)   IF LOTTO WINNINGS ARE ASSIGNED PURSUANT TO A COURT
ORDER AS PROVIDED IN THIS PARAGRAPH:

1. THE ASSIGNMENT CAN ONLY BE MADE BY THE ORIGINAL
LOTTO WINNER; AND

2. THE STATE LOTTERY AGENCY MAY LEVY AND IMPOSE A
FEE NOT TO EXCEED $500 IN CONNECTION WITH THE COURT ORDERED VOLUNTARY
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, on or before July 1,
1995, 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 4. AND BE IT FURTHER ENACTED, That Sections 1 and 2 of this
Act shall take effect October 1, 1995, contingent on the receipt of a ruling by the Internal
Revenue Service pursuant to Section 3 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, 1995, 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 of this Act 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. The State Lottery Agency,
within 5 days after receiving the ruling from the Internal Revenue Service, shall forward a copy
of the ruling to the Department of Legislative Reference, 90 State Circle, Annapolis, Maryland
21401.

SECTION 3. 5. AND BE IT FURTHER ENACTED, That Section 3 of this Act
shall take effect October 1, June 1, 1995.

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