AB 1332 Summary

• Modifies restrictions on assignment of lottery prize payments, allowing assignment of the final 3 annual payments if the contract is entered into on or after the bill's effective date (September 9, 2013).

• Prohibits lottery prize assignment if the IRS or a court determines that non-assigned prizes would create immediate income tax liability on the entire prize value rather than annual tax liability per installment.

• Requires the lottery director to file any such IRS ruling or court decision with the Secretary of State, immediately making prizewinners ineligible to assign prizes under these circumstances.

• Declares the bill furthers the purposes of the California State Lottery Act of 1984 and takes effect immediately as an urgency statute.