5-575

5-575. Prizes; setoff for debts to state
agencies; definitions

(Eff. 7/1/12)

A. The commission shall establish a liability setoff program by which state lottery
prize payments pursuant to section 5-573 may be used to satisfy debts which a person owes
this state. The program shall comply with the standards and requirements prescribed by
this section.

B. If a person owes an agency a debt, an agency may notify the commission,
furnishing at least the state agency or program identifier, the first name, last name,
middle initial and social security number of the debtor, and the amount of the
debt. This information shall be in the form the commission prescribes. Each agency
shall certify the information and update the information monthly. No information may be
transmitted by the department of revenue to the commission if the transmission would
violate title 42, chapter 2, article 1.

C. The commission shall match the information submitted by the agency with persons
who are entitled to a state lottery prize payment in an amount of six hundred dollars or
more. If there is a match, the commission shall set off the amount of the debt from the
prize due and notify the person of the person's right to appeal to the appropriate court,
or to request a review by the agency pursuant to agency rule. The person shall make such
a request or appeal within thirty days after the setoff. If the setoff accounts for only
a portion of the prize due, the remainder of the prize shall be paid to the person. The
commission shall promptly transfer the setoff, less the amount of the commission's fee,
to the agency.

D. If a person requests a review by the agency or provides the agency with proof
that an appeal has been taken to the appropriate court within thirty days after the
setoff and it is determined that the setoff was made in error under this section, the
agency shall reimburse the person with interest as determined pursuant to section
42-1123.

E. The basis for a request for review shall not include the validity of the claim
if its validity has been established at an agency hearing, by judicial review in a court
of competent jurisdiction in this or any other state or by final administrative decision
and shall state with specificity why the person claims the obligation does not exist or
why the amount of the obligation is incorrect.

F. The commission may prescribe a fee to be collected from each agency utilizing
the setoff procedure. The amount of the fee shall reasonably reflect the actual cost of
the service provided.

G. If agencies have two or more delinquent accounts for the same person, the
commission shall apportion the prize equally among them, except that a setoff to the
department of economic security for overdue support has priority over all other setoffs.

H. If the prize is insufficient to satisfy the entire debt, the remainder of the
debt may be collected by the agency as provided by law or resubmitted for setoff against
any other prize awarded.

I. An agency shall not enter into an agreement with a debtor for the assignment of
any prospective prize to the agency in satisfaction of the debt.

J. In this section:

1. "Agency" means a department, agency, board, commission or institution of this
state. Agency also means a corporation under contract with this state that provides a
service that would otherwise be provided by a department, agency, board, commission or
institution of this state if the contract specifically authorizes participation in the
liability setoff program and the attorney general's office has reviewed the contract and
approves of such authorization. The participation in the liability setoff program is
limited to debts related to the services the corporation provides for or on behalf of
this state.

2. "Debt" means an amount over one hundred dollars owed to an agency by a person
and may include interest, penalties, charges, costs, fees or any other amount. Debt also
includes monies owed by a person for overdue support and referred to the department of
economic security for collection.

3. "Overdue support" means a delinquency in court ordered payments for support or
maintenance of a child or for spousal maintenance to the parent with whom the child is
living if child support is also being enforced pursuant to an assignment or application
filed under 42 United States Code section 654(6).