S373

An Act concerning child support arrearages and certain public assistance overpayments, amending the title and body of P.L.2005, c.46, and supplementing P.L.1940, c.17 (C.5:5-22 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. The title of P.L.2005, c.46 is amended to read as follows:

AN ACT concerning [slot machine annuity jackpots] certain casino winnings, amending P.L.1995, c.18, and supplementing P.L.1977, c.110 (C.5:12-1 et seq.).

(cf: P.L.2005, c.46, title)

2. Section 5 of P.L.2005, c.46 (C.5:12-100.2) is amended to read as follows:

5. a. (1) Each [slot system operator] casino licensee that awards [an annuity jackpot] any winnings to a patron that require the licensee to report the patron and amount of winnings to the United States Secretary of the Treasury pursuant to section 6041 of the Internal Revenue Code (26 U.S.C. s.6041) or other applicable federal law, shall also provide prompt notice [to the division] of the name, address and social security number of [each annuity jackpot winner] the winning patron, and the amount of the pending [payments] payment, to the division. The division shall immediately forward such information to the Office of Information Technology in but not of the Department of the Treasury.

(2) At the time the winning patron seeks payment of the winnings from the casino licensee, the licensee shall notify the patron that, in accordance with the provisions set forth in this section, the payment is conditioned on the completion of a check for possible arrears of a child support order or amount due on a public assistance overpayment, and if existing, the withholding of winnings to satisfy the arrears or overpayment.

b. The Office of Information Technology shall cross check the [annuity jackpot winner list] winning patron’s information supplied by the division pursuant to subsection a. of this section with the data supplied to the office by the Commissioner of Human Services, pursuant to section 2 of P.L.1991, c.384 (C.5:9-13.2) [for a social security number match] , regarding individuals in arrears of a child support order or in receipt of a public assistance overpayment which has not been repaid. If a social security number match is made, the Office of Information Technology shall notify the Commissioner of Human Services.

c. (1) If [an annuity jackpot winner] the winning patron is in arrears of a child support order, or is a former recipient of [Aid to Families with Dependent Children or Work First New Jersey, food stamp benefits or low-income home energy assistance benefits who] any of the public assistance designated in section 2 of P.L.1991, c.384 (C.5:9-13.2), and has incurred an overpayment of assistance which has not been repaid, [the Probation Division of the Superior Court or] the Department of Human Services [, as appropriate,] shall promptly notify the [slot system operator] casino licensee of the name, address, social security number and amount due on [an] the patron’s arrears child support order or [the amount due on an] public assistance overpayment. Additionally, in the case of an amount due from a winning patron on an arrears child support order, the department shall simultaneously notify, with the same information as presented to the licensee, the Probation Division of the Superior Court, which is acting as the agent for the child support payee.

(2) The [slot system operator] casino licensee shall withhold [this] the amount of arrears or public assistance overpayment from the pending [annuity jackpot] payment to the winning patron and transmit same to the Probation Division of the Superior Court or the Department of Human Services, as appropriate, in accordance with regulations promulgated by the [State Treasurer] Department of Human Services, in consultation with the Division of Gaming Enforcement.

d. (1) The Probation Division of the Superior Court, acting as agent for the child support payee, or the county welfare agency that provided the public assistance benefits to the winning patron, as appropriate, shall have a lien on the proceeds of the [annuity jackpot] payment to the winning patron in an amount equal to the amount of child support arrearage or the amount of overpayment incurred, as appropriate. The lien imposed by this [section] subsection shall be enforceable in the Superior Court.

(2) Any of the [annuity jackpot winner's funds] winnings remaining after withholding pursuant to the lien established pursuant to this [section] subsection shall be paid to the [winner] winning patron in accordance with the rules of the division.

e. The Commissioner of Human Services, in consultation with the division, shall promulgate such regulations as may be necessary to effectuate the purposes of this section including, but not limited to, regulations providing for prompt notice to any [annuity jackpot winner] winning patron, from whose [payments] payment the Probation Division of the Superior Court or the Department of Human Services seeks to withhold [funds] winnings, of the amount to be withheld and the reason therefor, and providing the [annuity jackpot winner] patron with the opportunity for a hearing upon request prior to the disposition of any [funds] winnings.

f. The [State Treasurer] Commissioner of Human Services, in consultation with the division, shall also provide, by regulation, safeguards against the disclosure or inappropriate use of any personally identifiable information regarding any person obtained pursuant to this section.

g. [For the purposes of this section, "prompt notice" shall mean notice within 14 days or less.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)

(cf: P.L.2011, c.19, s.67)

3. (New section) a. (1) Each permit holder engaged in the business of conducting a horse race meeting that distributes any winnings to a patron that require the permit holder to report the patron and amount of winnings to the United States Secretary of the Treasury pursuant to section 6041 of the Internal Revenue Code (26 U.S.C. s.6041) or other applicable federal law, shall also provide prompt notice of the name, address and social security number of the winning patron, and the amount of the pending payment, to the New Jersey Racing Commission. The commission shall immediately forward the information to the Office of Information Technology in but not of the Department of the Treasury.

(2) At the time the winning patron seeks payment of the winnings from the permit holder, the permit holder shall notify the patron that, in accordance with the provisions set forth in this section, the payment is conditioned on the completion of a check for possible arrears of a child support order or amount due on a public assistance overpayment, and if existing, the withholding of winnings to satisfy the arrears or overpayment.

b. The Office of Information Technology shall cross check the winning patron’s information supplied by the commission pursuant to subsection a. of this section with the data supplied to the office by the Commissioner of Human Services, pursuant to section 2 of P.L.1991, c.384 (C.5:9-13.2), regarding individuals in arrears of a child support order or in receipt of a public assistance overpayment which has not been repaid. If a social security number match is made, the Office of Information Technology shall notify the Commissioner of Human Services.

c. (1) If the winning patron is in arrears of a child support order, or is a former recipient of any of the public assistance designated in section 2 of P.L.1991, c.384 (C.5:9-13.2), and has incurred an overpayment of assistance which has not been repaid, the Department of Human Services shall promptly notify the permit holder of the name, address, social security number and amount due on the patron’s arrears child support order or public assistance overpayment. Additionally, in the case of an amount due from a winning patron on an arrears child support order, the department shall simultaneously notify, with the same information as presented to the permit holder, the Probation Division of the Superior Court, which is acting as the agent for the child support payee.

(2) The permit holder shall withhold the amount of arrears or public assistance overpayment from the pending payment to the winning patron and transmit same to the Probation Division of the Superior Court or the Department of Human Services, as appropriate, in accordance with regulations promulgated by the Department of Human Services, in consultation with the commission.

d. (1) The Probation Division of the Superior Court, acting as agent for the child support payee, or the county welfare agency that provided the public assistance benefits to the winning patron, as appropriate, shall have a lien on the proceeds of the payment to the winning patron in an amount equal to the amount of child support arrearage or the amount of overpayment incurred, as appropriate. The lien imposed by this subsection shall be enforceable in the Superior Court.

(2) Any of the winnings remaining after withholding pursuant to the lien established pursuant to this subsection shall be paid to the winning patron in accordance with the rules of the commission.

e. The Commissioner of Human Services, in consultation with the commission, shall promulgate any regulations as may be necessary to effectuate the purposes of this section including, but not limited to, regulations providing for prompt notice to any winning patron, from whose payment the Probation Division of the Superior Court or the Department of Human Services seeks to withhold winnings, of the amount to be withheld and the reason therefore, and providing the patron with the opportunity for a hearing upon request prior to the disposition of any winnings.

f. The Commissioner of Human Services, in consultation with the commission, shall also provide, by regulation, safeguards against the disclosure or inappropriate use of any personally identifiable information regarding any person obtained pursuant to this section.

4. This act shall take effect on the first day of the fourth month next following enactment, and shall apply to any winnings that a casino licensee or permit holder engaged in the business of conducting a horse race meeting is required to report to the United States Secretary of the Treasury pursuant to federal law on or after the effective date.

STATEMENT

This bill provides a procedure for withholding casino and racetrack winnings from a winning patron in order to collect on child support arrearages owed or various public assistance overpayments not refunded by the patron. The withholding procedure is similar to the existing withholding procedures utilized in this State for the same purposes with respect to lottery prizes, P.L.1991, c.384 (C.5:9-13.1 et seq.), and annuity jackpot winnings, section 5 of P.L.2005, c.46 (C.5:12-100.2). The bill, in fact, amends the existing procedure regarding annuity jackpot winnings to expand its application to casino winnings generally.

Under the bill, anytime a payer of gambling winnings, being either a casino licensee or permit holder engaged in the business of conducting a horse race meeting, is required to report information on a winning patron and the amount of winnings to the United States Secretary of the Treasury pursuant to section 6041 of the Internal Revenue Code (26 U.S.C. s.6041) or other applicable federal law (generally winnings of $600 or more), the payer shall also provide prompt notice of the patron and winnings to the appropriate State regulating entity. Additionally, at the time the winning patron seeks payment of the winnings from the payer, the payer shall notify the patron that, in accordance with the provisions set forth in the bill, the payment is conditioned on the completion of a check for possible arrears of a child support order or amount due on a public assistance overpayment, and if existing, the withholding of winnings to satisfy the arrears or overpayment.

The regulating entity that received information on the winning patron and the amount of winnings shall immediately forward it to the State’s Office of Information Technology for a cross check against data supplied to the office by the Commissioner of Human Services, pursuant to section 2 of P.L.1991, c.384 (C.5:9-13.2), regarding individuals in arrears of a child support order or in receipt of a public assistance overpayment which has not been repaid.

If the check by the Office of Information Technology reveals that monies are owed by the winning patron, the office shall notify the Commissioner of Human Services, who in turn shall notify the payer regarding the patron’s arrears child support order or public assistance overpayment and the amount due. Additionally, in the case of an arrears child support order, the department shall simultaneously notify the Probation Division of the Superior Court, which is acting as the agent for the child support payee.

Upon receipt of the commissioner’s notification, the payer shall withhold the amount of arrears or overpayment from the pending payment to the winning patron. This money shall be transmitted to the Probation Division of the Superior Court or the Department of Human Services, as appropriate. The bill also provides the Probation Division, or the county agency that provided the public assistance benefits to the winning patron, with a lien on the winning patron’s proceeds in an amount equal to the amount of child support arrearage or public assistance overpayment incurred, which lien is enforceable in the Superior Court. Any of the winnings remaining after withholding pursuant to the lien established shall be paid to the winning patron.

The bill requires the Commissioner of Human Services, in consultation with the appropriate casino and horse racing regulating entities, to promulgate regulations in order to effectuate the provisions of the bill. These regulations shall include such matters as: prompt notice to winning patrons from whom winnings may be withheld, and the reasons therefore; and providing patrons with an opportunity for a hearing upon request prior to the disposition of any such winnings.