§ 53-12.1-12 — Setoff of prize

North Dakota § 53-12.1-12

• Jurisdiction: North Dakota
• Title 53: Sports and Amusements
• Ch. 53-12.1: Lottery

Text

1. A claimant agency and the director shall cooperate on the setoff of a winning lottery
ticket or promotional cash prize against a delinquent debt. A claimant agency is an
agency of the state of North Dakota that an individual owes money to or that collects
money on behalf of another party to satisfy a debt. The claimant agency and director
shall share necessary information, including the individual's full name, social security
number, and amount and type of debt, through a mutually convenient method to timely
achieve a setoff of a prize.
2. The director shall establish a debt setoff process in which a lottery prize claim of an
amount equal to or greater than six hundred dollars must be used to set off a
delinquent debt owed to or collected through a claimant agency. If the lottery prize
claim is paid through an annuitized payment option, each prize payment must be used
to set off a delinquent debt owed to or collected through a claimant agency.
3. If the director determines that a winning player owes a delinquent debt to or has a
delinquent debt collected through a claimant agency, the director shall set off the
amount of the debt from the prize payment due and notify the player, in writing, of the
setoff. If the setoff accounts for only a portion of the prize payment due, the remainder
of the prize payment must be paid to the player. The director shall transfer the setoff
amount to the claimant agency unless the player notifies the director, in writing, within
thirty days of the date of the notice of the setoff, that the player disputes all or part of
the debt owed to or collected through the claimant agency. If the director receives a
notification that the player disputes the setoff amount or claim upon which the setoff is
based, the director shall grant a hearing to the player to determine whether the setoff
is proper or the claim is valid, unless a review by a court is authorized under section
50-09-14. At a hearing, no issue may be reconsidered that the player has or could
have previously litigated in a court or administrative proceeding.
4. The lottery is discharged of all further liability for the amount of any debt setoff paid to
a claimant agency.
5. If two or more claimant agencies have delinquent accounts for the same player, the
director shall apportion the prize payment equally among them. However, a setoff to
the department of health and human services for child support payments has priority
over all other setoffs.
6. If the prize payment is insufficient to satisfy the entire debt, the remainder of the debt
may be collected by a claimant agency as provided by law or rule and resubmitted for
setoff against any other prize payment awarded.
7. If two or more claimant agencies make adverse claims to all or a part of a prize
payment, upon receipt of written notice from the claimant agencies setting forth their
claims, the director may deposit, in accordance with section 32-11-02, the contested
amount of the prize payment with the clerk of court in the district in which an action
pertaining to the contested amount is pending or with a court-authorized depository. If
one of the claims is for child support, the director shall transfer the setoff amount to the
state disbursement unit before depositing any remaining prize payment or award. Any
review of this transfer to the state disbursement unit must be done pursuant to section
50-09-14. Upon making the deposit or transfer, the state and its officials and
employees are discharged and relieved from further liability to any individual or
claimant agency related to the prize payment.