WSR 05-12-009

PROPOSED RULES

WASHINGTON STATE LOTTERY


[ Filed May 20, 2005, 8:47 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR [05-08-066 filed on] March 31, 2005.

Title of Rule and Other Identifying Information: WAC 315-06-125 Debts owed the state, changes to the rule will clarify the debt verification process.

Hearing Location(s): London Conference Room, Mezzanine Level Airport Office Building, Seattle-Tacoma International Airport, Seattle, Washington, on July 21, 2005, at 10:00 a.m.

Date of Intended Adoption: July 21, 2005.

Submit Written Comments to: Ceil Buddeke, P.O. Box 43025, Olympia, WA 98504-3025, e-mail Cbuddeke@walottery.com, fax (360) 664-4833, by July 19, 2005.

Assistance for Persons with Disabilities: Contact Joan Reuell by July 19, 2005, TTY (360) 586-0933.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Washington's lottery intends to recommend permanent amendment of this rule to clarify the verification requirements for debts owing to state agencies or political subdivisions.

Reasons Supporting Proposal: Lottery prizes are subject to off-set debts owed to the state. This rule will expedite collections of obligations through improved interagency cooperation.

Statutory Authority for Adoption: Chapter 67.70 RCW.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: Washington's Lottery, public.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Ceil Buddeke, 814 East 4th Avenue, Olympia, WA 98507, (360) 664-4833.

No small business economic impact statement has been prepared under chapter 19.85 RCW. This rule does not have a disproportionate impact on the state's small businesses.

A cost-benefit analysis is not required under RCW 34.05.328. Debt offset is mandated by statute. The rule is needed to achieve the general goals and specific objectives of RCW 67.70.255 to offset debts owing to state agencies or political subdivisions.

May 20, 2005

Ceil Buddeke

Rules Coordinator

OTS-8046.1


AMENDATORY SECTION(Amending WSR 93-23-012, filed 11/5/93, effective 12/6/93)

WAC 315-06-125   Debts owed the state.   (1) The terms used in RCW 67.70.255 and these regulations are defined as follows:

(a) Creditor - Any state agency or political subdivision of this state that maintains records of debts owed to the state or political subdivision, or that the state is authorized to enforce or collect.

(b) Debt - A judgment rendered by a court of competent jurisdiction or obligations established pursuant to RCW 50.20.190, 51.32.240, 51.48.140, 74.04.300, 74.20A.040, 74.20A.055 and 82.32.210 or administrative orders as defined in RCW 50.24.110, 51.32.240, 51.48.150, and 74.20A.020(6).

(c) State - The state of Washington.

(d) Two working days - Two days not to include Saturdays, Sundays, and holidays as defined in RCW 1.16.050 commencing the day following the date the claim was validated by the lottery.

(e) Verification - A facsimile or photocopy ((of a judgment or final order)) documenting debt, which is received by the lottery during the requisite two working day period.

(f) Individual - A natural person.

(2) Any creditor may submit, to the lottery, in a format specified by the director, data processing tapes/files containing debt information specified by the director. Tapes/files which do not contain the required information or are not in the proper format will be returned to the creditor. The creditor submitting debt information tapes/files shall provide replacement tapes/files on a regular basis at intervals not to exceed one month or less than one week. The creditor shall be solely responsible for the accuracy of the information contained therein.

(3) Creditors submitting data processing tapes/files to the lottery shall also submit the name or names of designated contact persons.

(4) The lottery shall include the debt information submitted by the creditor in its validation and prize payment process. The lottery shall delay payment of a prize, exceeding six hundred dollars, for a period not to exceed two working days, to any individual prize winner or to any other prize winner which has an individual holding a direct or indirect interest in the prize winner, and who owes a debt to a creditor pursuant to the information submitted in subsection (2) of this section. The lottery shall make a reasonable attempt to contact the creditor's designated contact person(s) by phone, followed by written correspondence, to verify the debt. Three phone calls, excluding busy signals, shall constitute a reasonable attempt. The prize shall be paid to the prize winner if the debt is not verified by the submitting creditor within two working days. If the debt is verified, the prize shall be disbursed pursuant to subsection (9) of this section.

(5) It shall be the obligation of the prize winner to provide the lottery with the names, Social Security numbers, and percentage interests of the individuals who collectively hold one hundred percent of the interest in the prize.

(6) Where an individual holds an interest in a prize claimed by another individual, the lottery must be informed of that interest, its percentage and the Social Security number (SSN) of the nonclaimant individual who holds the interest, prior to the validation and prize payment process described herein; otherwise, the Social Security number of the claimant individual and the full net amount of the prize will be used in completing the processing required under this section.

(7) Where the right to payment to an individual who holds an interest in a prize winner is discretionary with a third party or is contingent, the tax ID number of the prize winner shall be used in completing the processing required under this section, rather than the Social Security number of said individual.

(8) A creditor shall verify the debt by submitting to the lottery at lottery headquarters in Olympia, Washington within the requisite two working day period, a facsimile or photocopy of ((a judgment or final order which)) the documentation that is the basis for the debt.

(9) Prior to disbursement, any verified debts owed to a creditor by the individual winner of any lottery prize exceeding six hundred dollars or by an individual holding more than a six hundred dollar interest in a prize winner shall be set off against the prize owing to the individual or against the proportionate interest of the individual in the prize winner. In the event a prize winner or an individual holding more than a six hundred dollar interest in a prize winner owes debts to more than one creditor, and the total prize to that winner or individual is insufficient to pay all debts, the set off shall be paid to the creditors on a pro rata basis based on the amount of debt owed to each creditor unless priority is established by statute.

[Statutory Authority: RCW 67.70.040. 93-23-012, 315-06-125, filed 11/5/93, effective 12/6/93; 93-11-056, 315-06-125, filed 5/12/93, effective 6/12/93; 93-04-004, 315-06-125, filed 1/21/93, effective 2/21/93; 91-20-062, 315-06-125, filed 9/25/91, effective 10/26/91; 87-01-057 (Order 96), 315-06-125, filed 12/16/86.]

Washington State Code Reviser's Office