Section 401.319 - Withholding of Child-Support Payments from Periodic Installment Payments of Lottery Winnings(a) The executive director shall deduct from periodic installment winnings paid to a prize winner amounts owed by the prize winner for child support if the executive director has been provided with: (1) a certified copy of a court order;(2) a writ of withholding issued under Chapter 158, Family Code; or(3) notice of a child support lien created under Subchapter G, Chapter 157, Family Code.(b) A person, who is entitled to receive such child support payments, may file a certified copy of a court order, or a writ of withholding, or notice of a child support lien with the Office of the Controller, Texas Lottery Commission, P.O. Box 16630, Austin, Texas 78761-6630. If the recipient is not otherwise prohibited from receiving the funds, and if the order, writ, or notice is received at least ten business days before the date of a scheduled lottery prize installment payment, the appropriate amount will be withheld and will be forwarded to the person who is entitled to receive the child support payments or to the clerk of the court that issued the order for placement in the registry of the court.(c) The court order, writ of withholding, or notice of a child support lien must direct child support to be paid in the periodic payment increments as those in which the periodic lottery installment prize is paid. The executive director will not accept a certified copy of a court order, writ of withholding, or notice of child support lien until the executive director determines there is a periodic installment prize payment to which the winner is entitled.(d) If a person's winnings exceed the amount deducted under subsection (b) of this section and under 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 payment. The executive director shall transfer the money deducted under subsection (b) of this section to the clerk of the court that issued the order for placement in the registry of the court, and any other deduction will be distributed in accordance with the laws of the State of Texas and/or regulations of appropriate state agencies.(e) The Texas Lottery Commission will keep an index of all child support obligors for which court orders, writs of withholding, or notices of liens for child support have been filed with the Commission during the previous 24 months, and before payments of winnings are made, the agency will determine whether there is any amount that must be withheld. If any winnings are withheld, the Controller will make the appropriate distribution of the withheld amounts.(f) 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, and paid into the registry of that court for determination of right to the funds.(g) 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.16 Tex. Admin. Code § 401.319
The provisions of this §401.319 adopted to be effective August 30, 2010, 35 TexReg 7794; amended to be effective November 9, 2011, 36 TexReg 7553