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TITLE 16ECONOMIC REGULATION
PART 9TEXAS LOTTERY COMMISSION
CHAPTER 401ADMINISTRATION OF STATE LOTTERY ACT
SUBCHAPTER DLOTTERY GAME RULES
RULE §401.318Withholding of Delinquent Child-Support Payments from Lump-sum and Periodic Installment Payments of Lottery Winnings in Excess of Six Hundred Dollars

(a) In the event of a single cash value lottery prize payment, the executive director shall deduct from the lottery prize payment the amount of delinquent child support owed by the prize winner if the executive director has been provided with a certified copy of a court order, or a writ of withholding issued under Chapter 158, Family Code, or a notice of child support lien created under Subchapter G, Chapter 157, Family Code.

(b) A person, who is entitled to receive the delinquent child support payments, may file a certified copy of a court order, writ of withholding, or notice of child support lien for delinquent child support with the Office of the Controller, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. If these are on file for at least ten business days before the payment date, the delinquent amount will be withheld and will be forwarded to the person entitled to receive the delinquent child support payments, if the recipient is not otherwise prohibited from receiving the funds. If for any reason the person who is entitled to the delinquent child support payment cannot be located, the payment will be transferred to the clerk of the court that issued the order for placement in the registry of the court. The Commission will maintain the certified court order, notice of a child support lien, or writ of withholding for a total of twenty-four months from the date of receipt and in accordance with time limits of Government Code, §466.408 for filing a claim for a lottery prize. It is the responsibility of the person to whom delinquent child support is owed to re-submit the certified court order, notice of child support lien, or writ of withholding in accordance with Commission procedures.

(c) If a person's winnings exceed the amount deducted under subsection (b) of this section and any other laws of the State of Texas requiring a deduction from the winnings of a lottery winner, the executive director shall pay the balance to the person entitled to the prize winnings.

(d) This withholding authorization only applies to delinquent child support payments.

(e) If any conflicting claim exists or arises as to funds subject to a child support withholding request, the funds to which a conflict exists may be interpleaded into a court of competent jurisdiction for determination of right to the funds.

(f) If prize winnings are interpleaded into a court, that amount of the funds required to be submitted to the United States Internal Revenue Service (IRS) will be withheld by the Commission until a determination is made as to who is entitled to the prize payments. When such determination is made, the withheld funds will be submitted to the IRS, to the account of the person determined to be entitled to the payments.


Source Note: The provisions of this §401.318 adopted to be effective August 30, 2010, 35 TexReg 7793; amended to be effective November 9, 2011, 36 TexReg 7553

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