LRB-3923/2
JTK:kmg:km
1997 - 1998 LEGISLATURE
January 13, 1998 - Introduced by Representative Duff, by request of Irene Brown.
Referred to Joint committee on Finance.
AB710,1,3
1An Act relating to: the expenditure of $927,232.46 from moneys appropriated
2to the department of revenue for payment of a claim against the state made by
3Irene Brown.
Analysis by the Legislative Reference Bureau
This bill directs the expenditure of $927,232.46 from moneys appropriated to
the department of revenue (DOR) from the lottery fund for payments to holders of
winning tickets and shares. The claimant purchased a ticket issued by DOR in the
game called "Wisconsin's Very Own Megabucks". On March 9, 1997, the claimant's
ticket was drawn and she won $1,000,000. When the claimant claimed her prize,
DOR notified her that it would be paid in annual instalments over a period of 25
years. Prior to purchasing her ticket, the claimant learned about the lottery from
information printed on the back of the pay slip used for on-line games, by listening
to broadcast advertisements for the lottery and by borrowing a videotape issued by
DOR from a lottery retailer. These sources either indicated that the winner of the
Megabucks game would be paid in "25 instalments" or provided no information
concerning instalment payments. Additional information provided by DOR to the
claimant after she claimed her prize indicated that the prize would be paid in 25
annual instalments. The claimant had assumed that her prize would be payable in
25 monthly instalments. Under s. 560.30 (2m), 1995 stats., "[i]f the prize for a
winning lottery ... is payable in instalments over a period of years, any informational
material about the lottery must state the number of years over which the prize shall
be paid". The claimant claimed $927,232.46, representing the loss she calculated to
be incurred in receiving her prize over a period of 25 years as compared to a period
of 25 months, using a "present value of money" accounting methodology and applying
an interest rate of 4% on the delayed payments. On April 29, 1997, the claims board
recommended denial of this claim. See Senate Journal, p. 150.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB710, s. 1
1Section
1.
Claim against the state. There is directed to be expended from
the appropriation account under section 20.566 (8) (s) of the statutes, as affected by
the acts of 1997, $927,232.46 in payment of a claim against the state made by Irene
Brown, New Berlin, Wisconsin, to compensate her for the difference in value between
payment of a prize she won on March 9, 1997, in the Wisconsin lottery in 25 annual
instalments instead of 25 monthly instalments, as she had anticipated. Acceptance
of this payment releases this state, its officers, employes and agents from any further
claim resulting from the methodology for payment of this prize to the claimant.
