§ 18C-134. Setoff for debt collection against lottery prizes. - North Carolina Statutes

§ 18C‑134.  Setoff fordebt collection against lottery prizes.

(a)        Purpose. – TheCommission must establish a debt set‑off program by which lottery prizepayments may be used to satisfy a debt owed or collected by a claimant agencythat is at least fifty dollars ($50.00). The collection remedy under thissection is in addition to and not in substitution for any other remedyavailable by law.

(b)        Notification. – Aclaimant agency is automatically enrolled in the Commission's debt set‑offprogram if it is enrolled in the Department of Revenue debt set‑offprogram. To provide for more efficient operations, the Department of Revenueshall provide to the Commission on a periodic basis all updates to its debt set‑offprogram as soon as practicable.

(c)        Setoff. – TheCommission must match the information submitted by the claimant agency withpersons who are entitled to a State lottery prize payment in an amount of sixhundred dollars ($600.00) or more. If there is a match, the Commission must setoff the debt against the lottery winnings to which the debtor would otherwisebe entitled. When there are multiple claims to be set off, the priority inclaims to set off is the same as provided in G.S. 105A‑12. The winningsthat exceed the amount of the debt, if any, must be paid to that person. TheCommission must mail the debtor written notice that the setoff has occurred andmust transfer the net proceeds collected to the claimant agency. If theclaimant agency is a State agency, that agency must credit the amount receivedto a nonreverting trust account and must follow the procedure set in G.S. 105A‑8.

(d)        CollectionAssistance Fee. – To recover the costs incurred by the Commission in collectingdebts under this section, a collection assistance fee of five dollars ($5.00)may be imposed on each debt collected through setoff. The Commission mustcollect this fee as part of the debt and retain it. To recover the costsincurred by local agencies in submitting debts for collection under thissection, a collection assistance fee of fifteen dollars ($15.00) may be imposedon each local agency debt collected through setoff. The Commission must collectthis fee as part of the debt and remit it to the clearinghouse that submittedthe debt. The collection assistance fees do not apply to child support debts.If the Commission is able to collect only part of a debt through setoff, theCommission's collection assistance fee has priority over the local collectionassistance fee and over the remainder of the debt. The local collection assistancefee has priority over the remainder of the debt.

(e)        Confidentiality. – Notwithstandingany confidentiality statute of a claimant agency, the exchange of informationamong the Commission, the Department of Revenue, the claimant agency, theorganization submitting debts on behalf of a local agency, and the debtornecessary to implement this section is lawful. The information an agency ororganization obtains from the Commission in accordance with the exemption inthis subsection may be used by the agency or organization only in the pursuitof its debt collection duties and practices.

(f)         Definitions. – Thedefinitions in G.S. 105A‑2 apply in this section.  (2005‑344, s. 1; 2005‑276,s. 31.1(k1); 2009‑357, ss. 9, 10.)