Current through Reg. 50, No. 13; March 28, 2025
(a) Definitions.
"Prize Winner"--The name of the person who presented a valid ticket, claimed a
lottery prize and was and is recognized by the Texas Lottery as the person
entitled to receive the lottery prize payments and who is not an assignee of
the lottery prize. In the event of any conflict between a person who presented
a ticket and a person who is recognized by the Texas Lottery as the person
entitled to receive the lottery prize payments, a "prize winner" is the person
recognized by the Texas Lottery as the person entitled to receive lottery prize
payments.
(b) Prizes in the lottery
are not assignable except:
(1) if the prize
winner dies before the prize is paid, the director shall pay the prize as
required by law;
(2) pursuant to an
appropriate judicial order under Texas Government Code, §
466.406(c)
that resolves a bona fide underlying controversy involving the prize winner,
which order shall not include an order issued to enforce or approve an
agreement between a prize winner and any third party where the prize winner has
agreed to transfer future prize payments to a third party in exchange for
consideration; or
(3) pursuant to
an order under Texas Government Code, §
466.410 obtained by a
prize winner or an assignee of a prize winner.
(c) An order entered pursuant to Texas
Government Code, §
466.406(c).
An order entered pursuant to Texas Government Code, §
466.406(c)
must contain, in addition to any provisions required by law, the following:
(1) Recitation that the judicial order
comports with the requirements of Texas Government Code, §
466.406(c),
as follows: It is ordered and decreed that this (Order/Judgment) affecting the
payment of the lottery winnings comports with the requirements of Texas
Government Code, §
466.406(c)
and constitutes an "appropriate judicial order" authorizing the Texas Lottery
Commission to make the (identified) payments of lottery installment proceeds,
less any taxes and/or other offsets or mandatory withholdings required by law,
to (give name and amount).
(2)
Discharge of Liability provision, as follows: It is further ordered and decreed
that upon payment of each installment of lottery proceeds to (Name and amount),
pursuant to (Order/Judgment), less any taxes and/or other offsets or mandatory
withholdings required by law, the Texas Lottery Commission will be discharged
of all further liability with respect to that installment of lottery proceeds
in accordance with Texas Government Code, §
466.402(d).
(3) Release of the Texas Lottery Commission
and Indemnification provision, as follows: Upon entry of this (Order/Judgment),
pursuant to Texas Government Code, §
466.406, (Name of
prize winner or assignee of prize winner), on behalf of themselves, their
agents, heirs, and representatives hereby waive and release any and all claims,
whatsoever, known or unknown, they may have against the Texas Lottery
Commission, its members, employees, agents, representatives, or successors, as
of the date of this (Order/Judgment) relating to the installment payments
assigned by this (Order/Judgment). In addition, (Name of prize winner or
assignee of prize winner) on behalf of themselves, their agents, heirs, and
representatives shall indemnify and hold harmless the Texas Lottery Commission,
its members, employees, agents, representatives, or successors, from any claim
whatsoever, known or unknown, made as a result of the Texas Lottery
Commission's compliance with this (Order/Judgment).
(d) An order entered pursuant to Texas
Government Code, §
466.410. An order
entered pursuant to Texas Government Code, §
466.410 must contain,
in addition to any provisions required by law, the following:
(1) Recitation that the judicial order
comports with the requirements of Texas Government Code, §
466.410, as follows:
It is ordered and decreed that this (Order/Judgment) affecting the payment of
the lottery winnings comports with the requirements of Texas Government Code,
§
466.410 directing the
Texas Lottery Commission to make the (identified) payments of lottery
installment proceeds, less any taxes and/or other offsets or mandatory
withholdings required by law, to (give name and amount).
(2) Discharge of Liability provision, as
follows: It is further ordered and decreed that upon payment of each
installment of lottery proceeds to (Name and amount), pursuant to
(Order/Judgment), less any taxes and/or other offsets or mandatory withholdings
required by law, the Texas Lottery Commission will be discharged of all further
liability with respect to that installment of lottery proceeds in accordance
with Texas Government Code, §
466.402(d).
(3) Release of the Texas Lottery Commission
and Indemnification provision, as follows: Upon entry of this (Order/Judgment)
and the Commission's acknowledgement of this (Order/Judgment), pursuant to
Texas Government Code, §
466.410, (Name of
assignor), on behalf of themselves, their agents, heirs, and representatives
hereby waive and release any and all claims, whatsoever, known or unknown, they
may have against the Texas Lottery Commission, its members, employees, agents,
representatives, or successors, as of the date of this (Order/Judgment)
relating to the installment payments assigned by this (Order/Judgment). In
addition, (Name of assignor) on behalf of themselves, their agents, heirs, and
representatives shall indemnify and hold harmless the Texas Lottery Commission,
its members, employees, agents, representatives, or successors, from any claim
whatsoever, known or unknown, made as a result of the Texas Lottery
Commission's compliance with this (Order/Judgment).
(e) Procedures for a prize winner or an
assignee of a prize winner regarding assignments. All of the following
requirements must be met before the Texas Lottery will complete the assignment
process for specific installment payments.
(1) The prize winner or assignee of a prize
winner must submit to the commission an original notarized affidavit executed
by the prize winner or assignee of the prize winner providing an original
Release and Indemnification Agreement.
(2) The prize winner or the assignee of a
prize winner must pay the commission an administrative fee of $500.00 for each
assignment.
(3) The prize winner
and assignee must provide tax identification information to the commission for
proper prize verification and W-2G preparation, and the citizenship or resident
alien number for the assignee, if the assignee is an individual.
(4) The assignee must promptly provide the
commission an original notarized statement containing payment instructions and
contact information.
