Sacramento — Today, Assemblyman Curt Hagman’s (R-Chino Hills) AB 1332, which gives state lottery winners greater autonomy over assigning their winnings, was signed into law by Governor Jerry Brown.
“Now that AB 1332 is law, lottery winners who choose the installment payment option can be on equal footing with winners who take the cash up front,” said Assemblyman Hagman. “Permitting winners to access these assets will allow them to satisfy obligations they currently face, or meet other needs, such as sending children to college or paying for medical procedures.”
Prior to AB 1332, an aging statute allowed California State lottery winners with a long-term payout to assign to another person any part of their payment stream, with the exception of the last three years. Approximately eighty-seven percent of lottery prize winners now select the “Cash Value” option when they win, and with technological advances assisting in determining any outstanding payments, there is no longer a compelling reason for the state to withhold the right to assign portions of prize winnings. AB 1332 corrects the unfair terms by allowing lottery winners who are receiving their prize in installments to sell their last three years of payments or any part thereof.