Md. Code Regs. 36.02.06.17

Current through Register Vol. 51, No. 24, December 2, 2024

Section 36.02.06.17 - Claims on Behalf of an Entity

A. This regulation applies where a prize is won by an entity other than an individual or group of individuals.

B. When the name of an entity is entered on a ticket back as the prize winner, for the entity to be paid the prize, the provisions of this regulation shall apply.

C. If the entity is formed in Maryland and is a type of entity required to file documents with the Maryland State Department of Assessments and Taxation, the entity shall be in good standing with that Department.

D. As part of the documents to be submitted to the Agency at claiming, the entity shall submit a valid copy of all formation documents, even if they are not required to be filed with the Maryland State Department of Assessments and Taxation.

E. Required formation documents include articles of incorporation, trust terms, partnership agreement, completed IRS Form SS-4 and other documents providing the EIN number, certificates issued by the Secretary of State, and authority given to an individual acting on behalf of the entity.

F. The name of the entity shall be identical to the name of the entity as noted in the legal documents, including terms such as "the", "and", and "&".

G. The name and signature of the authorized representative shall be identical to the name noted in the legal documents.

H. The entity shall submit to the Agency a copy of all documents indicating that the individual completing the claim form has the authority to collect the prize on behalf of and as the representative of the entity, including:

(1) Minutes of a corporation authorizing a named individual to submit the ticket and collect the prize on behalf of the corporation; or

(2) Authority or affidavit of the trust.

I. The name and signature of the authorized representative shall be identical to the name noted in the legal documents.

J. The individual who submits the documentation shall submit proof that the individual is the individual authorized by the entity to collect the prize on behalf of the entity.

K. The signature of an entity shall consist of the name of the entity followed by the name of the individual authorized representative, and the representative's capacity, which shall be similar to the way it is set out in the authority provision in the legal documents.

L. The individual who signs on behalf of an entity shall submit an affidavit that each owner and each beneficiary of the entity is not a person prohibited by COMAR 36.01.01.05 from being paid a prize.

M. If the Director determines that the individual who completed the claim form on behalf of the entity that is a winner is not the proper individual to claim the prize on the entity's behalf, the Director may:

(1) Require an individual who the Director determines is a proper individual to claim the entity's prize on the entity's behalf to complete a new claim form; and

(2) Determine the appropriate information to be included on the claim form to protect the Agency and the public interest.

N. The Director may rely wholly on:

(1) A certified copy submitted to the Agency of a court of competent jurisdiction's appointment of an individual representative for the entity; or

(2) Any other evidence that an individual is entitled to the payment of prize on behalf of the entity.

O. The Director may petition a court of competent jurisdiction to request a determination about the payment of any prize which is or may become due to an entity.

P. If a court of competent jurisdiction orders that a prize due and to become due from the Agency to an entity be paid directly to a specified individual, the Agency shall pay the prize according to the order of the court.

Q. The entity shall be taxed at the highest withholding tax rate allowable.

R. The Agency shall put into its system the entity's taxpayer identification number to determine if the entity owes any State obligation.

S. If the entity owes a State obligation, the amount of the State obligation shall be withheld from the prize.

T. For prizes over $25,000 the Agency shall submit all documentation to the Comptroller of Maryland for processing.

U. Documents Submitted to the Agency.

(1) The Agency shall retain a copy of all documents submitted to the Agency by the entity and the entity's representative.

(2) A document submitted by the entity or the entity's representative is considered a public record.

Md. Code Regs. 36.02.06.17

Effective date: 40:9 Md. R. 790, eff.5/13/2013 ; recodified from .16 effective 46:24 Md. R. 1104, eff. 12/2/2019