| (3) Retailers may pay claims for prizes, if the commission's
validation system is operational.
(4) Before paying a prize, retailers shall validate
the winning ticket according to established validation requirements
and procedures.
(5) Payment of a prize by a retailer will be made to
the bearer of the validated winning ticket for that prize upon presentation
of proper identification, if appropriate.
(6) If a low- or mid-tier claim is presented to the
commission, the claimant shall follow all procedures of the commission
related to claiming a prize, including but not limited to filling
out a claim form, presenting appropriate identification if required,
completing the back of the ticket, and submitting these items including
the apparent winning ticket to the commission by mail or in person.
If the ticket is determined to be a non-winning ticket, the claim
shall be denied and the claimant shall be promptly notified. Tickets
will not be returned to the claimant.
(f) Payment of high-tier prizes.
(1) High-tier prizes must be presented for payment
to the commission. For purposes of this provision, the term "commission"
includes claim centers located throughout Texas. In connection with
certain scratch ticket games, the top-level prizes must be claimed
at commission headquarters.
(2) If a high-tier claim is presented to the commission,
the claimant shall follow all procedures of the commission related
to claiming a prize, including but not limited to filling out a claim
form, presenting appropriate identification as required, completing
the back of the ticket, and submitting these items including the apparent
winning ticket to the commission by mail or in person. Upon validation
of the ticket as a winning ticket, the commission shall pay the claimant
the amount due in accordance with commission procedures. If the ticket
is determined to be a non-winning ticket, the claim shall be denied
and the claimant shall be promptly notified. Tickets will not be returned
to the claimant.
(3) Before paying any prize, claim center personnel
shall validate the winning ticket according to established validation
requirements and procedures.
(4) All prizes shall be subject to tax withholding,
offsets, and other withholdings as provided by law.
(5) If a person is indebted or owes delinquent taxes
to the state, other than those specified in paragraph (4) of this
subsection, the winnings of a person shall be withheld until the debt
or taxes are paid.
(6) When paying a prize of $600 or more, the commission
shall file the appropriate income reporting form with the Internal
Revenue Service.
(7) Payment of a prize will be made to the bearer of
the validated winning ticket for that prize upon presentation of proper
identification.
(8) The director shall recognize only one person as
claimant of a particular prize. A claim may be made in the name of
a person other than an individual only if the person possesses a federal
employer identification number (FEIN) issued by the Internal Revenue
Service and such number is shown on the claim form. Groups, family
units, clubs, organizations, or other persons without an FEIN shall
designate one individual in whose name the claim is to be filed. If
a claim is erroneously entered with multiple claimants, the claimants
shall designate one of them as the individual recipient of the prize,
or, if they fail to designate an individual recipient, the director
may designate any one of the claimants as the sole recipient. In either
case, the claim shall then be considered as if it were originally
entered in the name of the designated individual and payment of any
prizes won shall be made to that single individual. Once a ticket
is submitted as a claim, it will not be returned to the winner.
(9) The executive director has discretion to set a
maximum total cash amount or maximum payment time period for each
prize level.
(g) Payment of prize awarded to minor.
(1) A person 18 years of age or older may purchase
a ticket to give as a gift to another person, including a minor.
(2) If a minor is entitled to a cash prize of less
than $600, the commission shall deliver to an adult member of the
minor's family or to the minor's guardian a check or warrant in the
amount of the prize payable to the order of the minor.
(3) If a minor is entitled to a cash prize of $600
or more, the commission shall deposit the amount of the prize in a
custodial bank account, with an adult member of the minor's family
or the minor's guardian serving as custodian for the minor.
(4) If a minor is entitled to a prize other than money,
the commission shall pay the cash equivalent of such prize in the
manner provided by paragraphs (2) and (3) of this subsection.
(5) A retailer is not authorized to pay a prize claimed
by a minor.
(h) Ticket responsibility.
(1) A ticket is a bearer instrument until signed on
the back by the ticket holder.
(2) The commission shall not be responsible for lost,
stolen, or destroyed tickets.
(3) The commission shall not be responsible for erroneous
or mutilated tickets.
(4) The commission shall not be responsible for tickets
claimed by a player in error for a lower prize at a retailer.
(5) The commission shall not be responsible for tickets
delivered to any address other than that designated by the commission
for such purpose.
(i) Disputed ticket. If a dispute arises between the
commission and a ticket claimant concerning whether the ticket is
a winning ticket and if the ticket prize has not been paid, the executive
director may, exclusively at his/her determination, reimburse the
claimant for the cost of the disputed ticket. This shall be the claimant's
exclusive remedy.
(j) Game closing.
(1) The executive director or his/her designee shall
determine the closing date for an individual scratch ticket game in
accordance with a scratch ticket game closing procedure that defines
the criteria used to monitor scratch ticket sales performance and
that identifies when scratch ticket games should be closed.
(A) The procedure shall provide for the timely closing
of a scratch ticket game after all top-level prizes in the game have
been claimed or on an earlier date as determined by the executive
director.
(B) The procedure shall provide for ending ticket sales
in a scratch ticket game within 45 days after game closing procedures
have been initiated.
(2) No tickets in a scratch ticket game may be sold
after the scratch ticket game closing date.
(k) Governing law. In purchasing a scratch ticket,
the lottery player agrees to comply with and abide by Texas law, all
rules, procedures, and final decisions of the commission, and all
procedures and instructions established by the executive director
for the conduct of the scratch ticket game.
|
| Source Note: The provisions of this §401.302 adopted to be effective May 29, 1992, 17 TexReg 3637; transferred effective December 27, 1993, as published in the Texas Register January 4, 1994, 19 TexReg 78; amended to be effective January 4, 1995, 19 TexReg 10097; amended to be effective March 14, 1996, 21 TexReg 1756; amended to be effective August 31, 1999, 24 TexReg 6971; amended to be effective November 29, 2001, 26 TexReg 9589; amended to be effective June 10, 2007, 32 TexReg 2986; amended to be effective December 31, 2017, 42 TexReg 7385; amended to be effective August 30, 2020, 45 TexReg 5908; amended to be effective November 2, 2023, 48 TexReg 6353 |
