Section 401.309 - Assignability of Prizes(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, § RSA 466.406<subdiv>(c)</subdiv> 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, § RSA 466.410 obtained by a prize winner or an assignee of a prize winner.(c) An order entered pursuant to Texas Government Code, § RSA 466.406<subdiv>(c)</subdiv>. An order entered pursuant to Texas Government Code, § RSA 466.406<subdiv>(c)</subdiv> 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, § RSA 466.406<subdiv>(c)</subdiv>, 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, § RSA 466.406<subdiv>(c)</subdiv> 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, § RSA 466.402<subdiv>(d)</subdiv>.(3) Release of the Texas Lottery Commission and Indemnification provision, as follows: Upon entry of this (Order/Judgment), pursuant to Texas Government Code, § RSA 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, § RSA 466.410. An order entered pursuant to Texas Government Code, § RSA 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, § RSA 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, § RSA 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, § RSA 466.402<subdiv>(d)</subdiv>.(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, § RSA 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.16 Tex. Admin. Code § 401.309
The provisions of this §401.309 adopted to be effective March 14, 1996, 21 TexReg 2074; amended to be effective September 1, 1999, 24 TexReg 6972; amended to be effective November 29, 2001, 26 TexReg 9589; amended to be effective November 9, 2011, 36 TexReg 7552