Sub. H. B. No. 122 As Reported by the Senate State and Local Government and Veterans Affairs Committee

Representatives Wagoner, McGregor, Martin, Wagner, T. Patton, Hoops, Uecker, Seitz, Combs, Gibbs, Flowers, Collier, D. Evans, Calvert, Reidelbach, Setzer, Strahorn, Garrison, Latta, C. Evans, Kearns, Blasdel, Law, Gilb, Webster, Ujvagi, Harwood, Daniels, Carmichael, Walcher, Hartnett, D. Stewart, Book, Allen, Barrett, Brinkman, Brown, Cassell, Chandler, Coley, DeBose, Distel, Dolan, Domenick, Faber, Hughes, Key, Miller, Sayre, Schaffer, Schneider, J. Stewart, Yuko

Senator Mumper

A BILL

To amend sections 3770.07, 3770.071, 3770.072, and 1
5747.062 and to enact section 3123.89 of the 2
Revised Code to prohibit the claiming and payment 3
of a lottery prize award with a value in excess of 4
$599 until the beneficial owner's name, address, 5
and Social Security number are disclosed to the 6
State Lottery Commission, to make changes in the 7
procedure for the deduction of support from 8
lottery prize awards, to change the income tax 9
withholding percentage for certain lottery prize 10
award payments, and to modify the basis upon which 11
the withholding computation is made. 12

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That sections 3770.07, 3770.071, 3770.072, and 13
5747.062 be amended and section 3123.89 of the Revised Code be 14
enacted to read as follows: 15

       Sec. 3123.89. (A) Subject to section 3770.071 of the Revised 16
Code, a child support enforcement agency that determines that an 17
obligor who is the recipient of a lottery prize award is subject 18
to a final and enforceable determination of default made under 19
sections 3123.01 to 3123.07 of the Revised Code shall issue an 20
intercept directive to the director of the state lottery 21
commission. A copy of this intercept directive shall be sent to 22
the obligor. 23

       (B) The intercept directive shall require the director or the 24
director's designee to transmit an amount or amounts from the 25
proceeds of the specified lottery prize award to the office of 26
child support in the department of job and family services. The 27
intercept directive also shall contain all of the following 28
information: 29

       (1) The name, address, and social security number or taxpayer 30
identification number of the obligor; 31

       (2) A statement that the obligor has been determined to be in 32
default under a support order; 33

       (3) The amount of the arrearage owed by the obligor as 34
determined by the agency. 35

       (C) After receipt of an intercept directive and in accordance 36
with section 3770.071 of the Revised Code, the director or the 37
director's designee shall deduct the amount or amounts specified 38
from the proceeds of the lottery prize award referred to in the 39
directive and transmit the amounts to the office of child support. 40

       Sec. 3770.07. (A)(1) Except as provided in division (A)(2) 41
of this section, lottery prize awards shall be claimed by the 42
holder of the winning lottery ticket, or by the executor or 43
administrator, or the trustee of a trust, of the estate of a 44
deceased holder of a winning lottery ticket, in a manner to be 45
determined by the state lottery commission, within one hundred 46
eighty days after the date on which the prize award was announced 47
if the lottery game is an ~~on-line~~online game, and within one 48
hundred eighty days after the close of the game if the lottery 49
game is an instant game. 50

       No lottery prize award with a value that exceeds five hundred 51
ninety-nine dollars shall be claimed by or paid to any person, as 52
defined in section 1.59 of the Revised Code or as defined by rule 53
or order of the state lottery commission, until the name, address, 54
and social security number of each beneficial owner of the prize 55
award are disclosed to the commission. Except when a beneficial 56
owner otherwise consents in writing, the name, address, and social 57
security number of that beneficial owner in the commission's 58
records as a result of that disclosure are confidential and shall 59
not be subject to inspection or copying under section 149.43 of 60
the Revised Code as a public record. 61

        Except as otherwise provided in division (A)(1) of this 62
section or as otherwise provided by law, the name and address of 63
any individual claiming a lottery prize award are subject to 64
inspection or copying under section 149.43 of the Revised Code as 65
a public record. 66

       (2) An eligible person serving on active military duty in any 67
branch of the United States armed forces during a war or national 68
emergency declared in accordance with federal law may submit a 69
delayed claim for a lottery prize award. The eligible person shall 70
do so by notifying the state lottery commission about the claim 71
not later than the five hundred fortieth day after the date on 72
which the prize award was announced if the lottery game is an 73
~~on-line~~online game or after the date on which the lottery game 74
closed if the lottery game is an instant game. 75

       (3) If no valid claim to a lottery prize award is made within 76
the prescribed period, the prize money, the cost of goods and 77
services awarded as prizes, or, if goods or services awarded as 78
prizes are resold by the state lottery commission, the proceeds 79
from their sale shall be returned to the state lottery fund and 80
distributed in accordance with section 3770.06 of the Revised 81
Code. 82

       (4) The state lottery commission may share with other 83
governmental agencies the name, address, and social security 84
number of a beneficial owner disclosed to the commission under 85
division (A)(1) of this section, as authorized under sections 86
3770.071 and 3770.073 of the Revised Code. The shared information 87
as disclosed pursuant to those sections remains confidential and 88
shall not be subject to inspection or copying under section 149.43 89
of the Revised Code as a public record unless the beneficial owner 90
otherwise provides written, notarized consent. 91

       (5) As used in this division: 92

       (a) "Eligible person" means a person who is entitled to a 93
lottery prize award and who falls into either of the following 94
categories: 95

       (i) While on active military duty in this state, the person, 96
as the result of a war or national emergency declared in 97
accordance with federal law, is transferred out of this state 98
before the one hundred eightieth day after the date on which the 99
winner of the lottery prize award is selected. 100

       (ii) While serving in the reserve forces in this state, the 101
person, as the result of a war or national emergency declared in 102
accordance with federal law, is placed on active military duty and 103
is transferred out of this state before the expiration of the one 104
hundred eightieth day after the date on which the prize drawing 105
occurs for an ~~on-line~~online game or before the expiration of the 106
one hundred eightieth day following the close of an instant game 107
as determined by the commission. 108

       (b) "Active military duty" means that a person is covered by 109
the "Servicemembers Civil Relief Act," 117 Stat. 2835 (2003), 50 110
U.S.C. 501 et seq., as amended, or the "Uniformed Services 111
Employment and Reemployment Rights Act of 1994," 108 Stat. 3149, 112
38 U.S.C. 4301 et seq., as amended. 113

       (c) "Each beneficial owner" means the ultimate recipient or, 114
if there is more than one, each ultimate recipient of a lottery 115
prize award. 116

       (B) If a prize winner, as defined in section 3770.10 of the 117
Revised Code, is under eighteen years of age, or is under some 118
other legal disability, and the prize money or the cost of goods 119
or services awarded as a prize exceeds one thousand dollars, the 120
director of the state lottery commission shall order that payment 121
be made to the order of the legal guardian of that prize winner. 122
If the amount of the prize money or the cost of goods or services 123
awarded as a prize is one thousand dollars or less, the director 124
may order that payment be made to the order of the adult member, 125
if any, of that prize winner's family legally responsible for the 126
care of that prize winner. 127

       (C) No right of any prize winner, as defined in section 128
3770.10 of the Revised Code, to a prize award shall be the subject 129
of a security interest or used as collateral. 130

       (D)(1) No right of any prize winner, as defined in section 131
3770.10 of the Revised Code, to a prize award shall be assignable, 132
or subject to garnishment, attachment, execution, withholding, or 133
deduction, except as follows: as provided in sections 3119.80, 134
3119.81, 3121.02, 3121.03, and 3123.06 of the Revised Code; when 135
the payment is to be made to the executor or administrator, or the 136
trustee of a trust, of the estate of a winning ticket holder; when 137
the award of a prize is disputed, any person may be awarded a 138
prize award to which another has claimed title, pursuant to the 139
order of a court of competent jurisdiction; when a person is 140
awarded a prize award to which another has claimed title, pursuant 141
to the order of a federal bankruptcy court under Title 11 of the 142
United States Code; when the director is to make a payment 143
pursuant to section 3770.071 or 3770.073 of the Revised Code; or 144
as provided in sections 3770.10 to 3770.14 of the Revised Code. 145

       (2) The state lottery commission shall adopt rules pursuant 146
to section 3770.03 of the Revised Code concerning the payment of 147
prize awards upon the death of a prize winner, as defined in 148
section 3770.10 of the Revised Code. Upon the death of a prize 149
winner, the remainder of the prize winner's prize award, to the 150
extent it is not subject to a transfer agreement under sections 151
3770.10 to 3770.14 of the Revised Code, may be paid to the 152
executor, administrator, or trustee in the form of a discounted 153
lump sum cash settlement. 154

       (E) No lottery prize award shall be awarded to or for any 155
officer or employee of the state lottery commission, any officer 156
or employee of the auditor of state actively coordinating and 157
certifying commission drawings, or any blood relative or spouse of 158
such an officer or employee of the commission or auditor of state 159
living as a member of the officer's or employee's household, nor 160
shall any such officer, employee, blood relative, or spouse 161
attempt to claim a lottery prize award. 162

       (F) The director may prohibit vendors to the state lottery 163
commission and their employees from being awarded a lottery prize 164
award. 165

       (G) Upon the payment of prize awards pursuant to this 166
section, the director and the state lottery commission are 167
discharged from all further liability for their payment. 168

       Sec. 3770.071. (A)(1) If the amount of the prize money or 169
the cost of goods or services awarded as a lottery prize award is 170
six hundred dollars or more, the director of the state lottery 171
commission, or the director's designee, shall require the person 172
entitled to the prize award to affirm in writing, under oath, 173
whether or not the person is in default under a support order. The 174
director or the director's designee also may take any additional 175
appropriate steps to determine if the person entitled to the prize 176
award is in default under a support order. If the person entitled 177
to the prize award affirms that the person is in default under a 178
support order, or if the director or the director's designee 179
determines that the person is in default under a support order, 180
the director or the director's designee shall temporarily withhold 181
payment of the prize award and ~~inform~~notify the ~~court~~child 182
support enforcement agency that ~~issued~~administers the support 183
order that the person is entitled to a prize award, of the amount 184
of the prize award, and, if the prize award is to be paid in 185
annual installments, of the number of installments. 186

       ~~After~~(2) Upon receipt of the notice from the director or the 187
director's designee, the ~~court shall give the person notice of the~~ 188
~~director's notice, schedule a hearing to determine if the person~~ 189
~~is in default and the amount of the default, and give the person~~ 190
~~notice of the date, time, and location of the hearing~~child 191
support enforcement agency shall conduct an investigation to 192
determine whether the person entitled to the lottery prize award 193
is subject to a final and enforceable determination of default 194
made under sections 3123.01 to 3123.07 of the Revised Code. If the 195
~~court at the hearing~~agency determines that the person is in 196
~~default~~so subject, it shall issue an ~~order~~intercept directive as 197
described in section 3123.89 of the Revised Code to the director 198
at lottery commission headquarters requiring the director or the 199
director's designee to deduct from any unpaid prize award or any 200
annual installment payment of ~~the~~an unpaid prize award, a 201
specified amount for ~~child support or spousal~~ support in 202
satisfaction of the support order under which the person is in 203
default. To the extent possible, the amount specified to be 204
deducted under the ~~order issued under this section~~intercept 205
directive shall satisfy the amount ordered for ~~support or spousal~~ 206
support in the support order under which the person is in default. 207
~~Within~~ 208

       A child support enforcement agency shall issue an intercept 209
directive within thirty days from the date the director or the 210
director's designee notifies the agency under division (A)(1) of 211
this section. Within thirty days after the date on which the ~~court~~ 212
agency issues the ~~order under this section to the director~~ 213
intercept directive, the director or the director's designee shall 214
pay the amount specified in ~~that order~~the intercept directive to 215
the office of child support in the department of job and family 216
services. IfBut, if the prize award is to be paid in annual 217
installments, the director or the director's designee, on the date 218
the next installment payment is due, shall ~~pay~~deduct the amount 219
specified in the ~~court order issued under this section~~intercept 220
directive from that installment and, if necessary, any subsequent 221
annual installments, at the time ~~such~~those installments become 222
due and owing to the prize winner, and pay the amount to the 223
office of child support. 224

       (B) As used in this section: 225

       (1) "Support order" has the same meaning as in section 226
3119.01 of the Revised Code. 227

       (2) "Default" has the same meaning as in section 3121.01 of 228
the Revised Code. 229

       (C) No person shall knowingly make a false affirmation or 230
oath required by division (A) of this section. 231

       Sec. 3770.072. (A) As used in this section, "prize winner," 232
"transferee," and "transferor" have the same meanings as in 233
section 3770.10 of the Revised Code. 234

       (B) The state lottery commission shall deduct amounts from 235
lottery prize awards and file returns in accordance with section 236
5747.062 of the Revised Code and any rules adopted by the tax 237
commissioner pursuant to that section. This division also applies 238
to lottery prize award payments the commission remits to 239
transferees. 240

       (C)(1)(a) Each transferee shall deduct and withhold from each 241
gross amount payable to each prize winner ~~three and one-half~~six 242
per cent of the gross amount payable prior to making any other 243
reduction required by this chapter. 244

       (b) Subject to division (C)(1)(c) of this section, each 245
transferee, including any transferee that is a related member, as 246
defined in section 5733.042 of the Revised Code, to the 247
transferor, shall deduct and withhold from each amount payable to 248
a transferor that is not a prize winner six per cent of the 249
portion of the payment representing gain or income the transferor 250
will recognize in connection with the payment. 251

        (c) For purposes of division (C)(1)(b) of this section, the 252
portion of any payment representing gain or income recognized by 253
the transferor shall be computed in accordance with the Internal 254
Revenue Code. The transferor shall prepare a written statement 255
setting forth that amount and sign the statement under penalty of 256
perjury. Within five days before the date on which the payment is 257
to be made, the transferor shall deliver the written statement to 258
the transferee and deliver a copy of the written statement to the 259
tax commissioner. If the transferee does not receive the written 260
statement by the time the payment is made, the transferee shall 261
withhold six per cent of the entire amount of the payment. If the 262
tax commissioner notifies the transferee that the transferor has 263
erroneously computed the amount of gain or income recognized, the 264
transferee shall withhold six per cent of the entire amount of 265
each payment to be made after the transferee receives the notice. 266

        (d) The tax commissioner may impose a penalty of up to one 267
thousand dollars for any person failing to timely deliver to the 268
tax commissioner the copy of the written statement as required by 269
division (C)(1)(c) of this section. Proceeds from the imposition 270
of the penalty shall be considered as revenue arising from the tax 271
imposed under section 5733.06 or 5747.02 of the Revised Code, as 272
applicable. 273

       (2) With respect to amounts deducted and withheld pursuant to 274
division (C)(1) of this section, each transferee shall comply with 275
divisions (A)(2) to (4) of section 5747.062 of the Revised Code. 276

       (3) An employee of a corporation, limited liability company, 277
or business trust having control or supervision of or charged with 278
the responsibility of filing the report and making the payment 279
required by division (C) of this section and section 5747.062 of 280
the Revised Code, or an officer, member, manager, or trustee of a 281
corporation, limited liability company, or business trust who is 282
responsible for the execution of the corporation's, limited 283
liability company's, or business trust's fiscal responsibilities, 284
shall be personally liable for failure to file the report or pay 285
the amount due as required by division (C) of this section and 286
section 5747.062 of the Revised Code. The dissolution, 287
termination, or bankruptcy of a corporation, limited liability 288
company, or business trust does not discharge a responsible 289
officer's, member's, manager's, employee's, or trustee's liability 290
for a failure of the corporation, limited liability company, or 291
business trust to file returns or pay the amount due. 292

       (4)(a) The tax commissioner may make an assessment against 293
any person listed in division (C)(1) or (3) of this section for 294
any deficiency for any period. Section 5747.13 of the Revised Code 295
shall apply with respect to issuing assessments, filing petitions 296
for reassessments, conducting hearings, issuing final 297
determinations, making the assessment final, and filing the entry 298
that makes the assessment final. Section 5717.02 of the Revised 299
Code shall apply to appeals of the commissioner's final decision 300
in connection with assessments issued pursuant to division (C)(4) 301
of this section. 302

       (b) An assessment issued against any person listed in 303
division (C)(1) or (3) of this section shall not be considered an 304
election of remedies or a bar to an assessment against any other 305
person for the failure to comply with division (C)(1) of this 306
section. No assessment shall be issued against any person who is 307
so listed if the amount required to be withheld has been paid by 308
another. 309

       (c) The assessment shall include interest at the rate per 310
annum prescribed by section 5703.47 of the Revised Code on 311
liability from the time the payment is due until the date of 312
assessment. Interest shall continue to accrue from the date of 313
assessment until the date the assessment is paid in full. Any 314
interest accruing subsequent to the date of the issuance of the 315
assessment shall be considered to be an additional deficiency for 316
which the tax commissioner may issue subsequent assessments. The 317
initial assessment and any subsequent assessments may include a 318
penalty in an amount not to exceed twice the applicable interest 319
charged under this division. 320

       Sec. 5747.062. As used in this section, "transferee" has the 321
same meaning as in section 3770.10 of the Revised Code, and 322
"recipient" includes a transferee. 323

       (A)(1) The state lottery commission shall deduct and withhold 324
from each lottery prize award payment that exceeds five thousand 325
dollars an amount equal to ~~three and one-half~~six per cent of the 326
payment, prior to making any other reduction required by Chapter 327
3770. of the Revised Code. 328

       (2) On or before the tenth banking day of each month, the 329
state lottery commission, and each transferee required to deduct 330
and withhold amounts pursuant to section 3770.072 of the Revised 331
Code, shall file a return and remit to the tax commissioner all 332
amounts deducted and withheld pursuant to this section during the 333
preceding month. 334

       (3) On or before the thirty-first day of January of each 335
year, the state lottery commission, and each transferee required 336
to deduct and withhold amounts pursuant to section 3770.072 of the 337
Revised Code, shall file with the commissioner an annual return, 338
in the form prescribed by the tax commissioner, indicating the 339
total amount deducted and withheld pursuant to this section or 340
section 3770.072 of the Revised Code during the preceding calendar 341
year. At the time of filing that return, the state lottery 342
commission or transferee shall remit any amount deducted and 343
withheld during the preceding calendar year that was not 344
previously remitted. 345

       (4) The state lottery commission, and each transferee 346
required to deduct and withhold amounts pursuant to section 347
3770.072 of the Revised Code, shall issue to each person with 348
respect to whom tax has been deducted and withheld by the 349
commission or transferee pursuant to this section or section 350
3770.072 of the Revised Code during the preceding calendar year, 351
an information return in the form prescribed by the commissioner. 352

       (B)(1) Division (B)(1) of this section does not apply to 353
persons classified for federal income tax purposes as associations 354
taxable as corporations. 355

       Amounts withheld pursuant to this section or section 3770.072 356
of the Revised Code shall be treated as a credit against the tax 357
imposed pursuant to section 5747.02 of the Revised Code upon the 358
lottery prize award recipient, upon a beneficiary of such a 359
recipient, or upon any investor in such a recipient if the 360
recipient is a pass-through entity or disregarded entity, and 361
shall be treated as paid by the recipient, beneficiary, or 362
investor on the date on which those amounts are deducted and 363
withheld. The credit is a refundable credit and shall be claimed 364
in the order required under section 5747.98 of the Revised Code. 365
The credit is available to the recipient, beneficiary, or investor 366
even if the commission or transferee does not remit to the tax 367
commissioner the amount withheld. 368

       (2) Division (B)(2) of this section applies only to persons 369
classified for federal income tax purposes as associations taxable 370
as corporations. 371

       ~~Amount~~Amounts withheld pursuant to this section or section 372
3770.072 of the Revised Code shall be treated as a credit against 373
the tax imposed pursuant to section 5733.06 of the Revised Code 374
for the tax year immediately following the date on which those 375
amounts are deducted and withheld, upon the lottery prize award 376
recipient, upon a beneficiary of such a recipient, or upon an 377
investor in such a recipient if the recipient is a pass-through 378
entity or disregarded entity, and shall be treated as paid by the 379
recipient, beneficiary, or investor on the date on which those 380
amounts are deducted and withheld. The credit is a refundable 381
credit and shall be claimed in the order required under section 382
5733.98 of the Revised Code. The credit is available to the 383
recipient, beneficiary, or investor even if the commission or 384
transferee does not remit to the tax commissioner the amount 385
withheld. 386

       (3) Nothing in division (B)(1) or (2) of this section shall 387
be construed to allow more than one person to claim the credit for 388
any portion of each amount deducted and withheld. 389

       (C) Failure of the commission or any transferee to deduct and 390
withhold the required amounts from lottery prize awards or to 391
remit amounts withheld as required by this section and section 392
3770.072 of the Revised Code shall not relieve a taxpayer 393
described in division (B) of this section from liability for the 394
tax imposed by section 5733.06 or 5747.02 of the Revised Code. 395

       Section 2. That existing sections 3770.07, 3770.071, 396
3770.072, and 5747.062 of the Revised Code are hereby repealed. 397

Section 1. That sections 3770.07, 3770.071, 3770.072, and	13
5747.062 be amended and section 3123.89 of the Revised Code be	14
enacted to read as follows:	15

Sec. 3123.89. (A) Subject to section 3770.071 of the Revised	16
Code, a child support enforcement agency that determines that an	17
obligor who is the recipient of a lottery prize award is subject	18
to a final and enforceable determination of default made under	19
sections 3123.01 to 3123.07 of the Revised Code shall issue an	20
intercept directive to the director of the state lottery	21
commission. A copy of this intercept directive shall be sent to	22
the obligor.	23

(B) The intercept directive shall require the director or the	24
director's designee to transmit an amount or amounts from the	25
proceeds of the specified lottery prize award to the office of	26
child support in the department of job and family services. The	27
intercept directive also shall contain all of the following	28
information:	29

(1) The name, address, and social security number or taxpayer	30
identification number of the obligor;	31

(2) A statement that the obligor has been determined to be in	32
default under a support order;	33

(3) The amount of the arrearage owed by the obligor as	34
determined by the agency.	35

(C) After receipt of an intercept directive and in accordance	36
with section 3770.071 of the Revised Code, the director or the	37
director's designee shall deduct the amount or amounts specified	38
from the proceeds of the lottery prize award referred to in the	39
directive and transmit the amounts to the office of child support.	40

Sec. 3770.07. (A)(1) Except as provided in division (A)(2)	41
of this section, lottery prize awards shall be claimed by the	42
holder of the winning lottery ticket, or by the executor or	43
administrator, or the trustee of a trust, of the estate of a	44
deceased holder of a winning lottery ticket, in a manner to be	45
determined by the state lottery commission, within one hundred	46
eighty days after the date on which the prize award was announced	47
if the lottery game is an ~~on-line~~online game, and within one	48
hundred eighty days after the close of the game if the lottery	49
game is an instant game.	50

No lottery prize award with a value that exceeds five hundred	51
ninety-nine dollars shall be claimed by or paid to any person, as	52
defined in section 1.59 of the Revised Code or as defined by rule	53
or order of the state lottery commission, until the name, address,	54
and social security number of each beneficial owner of the prize	55
award are disclosed to the commission. Except when a beneficial	56
owner otherwise consents in writing, the name, address, and social	57
security number of that beneficial owner in the commission's	58
records as a result of that disclosure are confidential and shall	59
not be subject to inspection or copying under section 149.43 of	60
the Revised Code as a public record.	61

Except as otherwise provided in division (A)(1) of this	62
section or as otherwise provided by law, the name and address of	63
any individual claiming a lottery prize award are subject to	64
inspection or copying under section 149.43 of the Revised Code as	65
a public record.	66

(2) An eligible person serving on active military duty in any	67
branch of the United States armed forces during a war or national	68
emergency declared in accordance with federal law may submit a	69
delayed claim for a lottery prize award. The eligible person shall	70
do so by notifying the state lottery commission about the claim	71
not later than the five hundred fortieth day after the date on	72
which the prize award was announced if the lottery game is an	73
~~on-line~~online game or after the date on which the lottery game	74
closed if the lottery game is an instant game.	75

(3) If no valid claim to a lottery prize award is made within	76
the prescribed period, the prize money, the cost of goods and	77
services awarded as prizes, or, if goods or services awarded as	78
prizes are resold by the state lottery commission, the proceeds	79
from their sale shall be returned to the state lottery fund and	80
distributed in accordance with section 3770.06 of the Revised	81
Code.	82

(4) The state lottery commission may share with other	83
governmental agencies the name, address, and social security	84
number of a beneficial owner disclosed to the commission under	85
division (A)(1) of this section, as authorized under sections	86
3770.071 and 3770.073 of the Revised Code. The shared information	87
as disclosed pursuant to those sections remains confidential and	88
shall not be subject to inspection or copying under section 149.43	89
of the Revised Code as a public record unless the beneficial owner	90
otherwise provides written, notarized consent.	91

(a) "Eligible person" means a person who is entitled to a	93
lottery prize award and who falls into either of the following	94
categories:	95

(i) While on active military duty in this state, the person,	96
as the result of a war or national emergency declared in	97
accordance with federal law, is transferred out of this state	98
before the one hundred eightieth day after the date on which the	99
winner of the lottery prize award is selected.	100

(ii) While serving in the reserve forces in this state, the	101
person, as the result of a war or national emergency declared in	102
accordance with federal law, is placed on active military duty and	103
is transferred out of this state before the expiration of the one	104
hundred eightieth day after the date on which the prize drawing	105
occurs for an ~~on-line~~online game or before the expiration of the	106
one hundred eightieth day following the close of an instant game	107
as determined by the commission.	108

(b) "Active military duty" means that a person is covered by	109
the "Servicemembers Civil Relief Act," 117 Stat. 2835 (2003), 50	110
U.S.C. 501 et seq., as amended, or the "Uniformed Services	111
Employment and Reemployment Rights Act of 1994," 108 Stat. 3149,	112
38 U.S.C. 4301 et seq., as amended.	113

(c) "Each beneficial owner" means the ultimate recipient or,	114
if there is more than one, each ultimate recipient of a lottery	115
prize award.	116

(B) If a prize winner, as defined in section 3770.10 of the	117
Revised Code, is under eighteen years of age, or is under some	118
other legal disability, and the prize money or the cost of goods	119
or services awarded as a prize exceeds one thousand dollars, the	120
director of the state lottery commission shall order that payment	121
be made to the order of the legal guardian of that prize winner.	122
If the amount of the prize money or the cost of goods or services	123
awarded as a prize is one thousand dollars or less, the director	124
may order that payment be made to the order of the adult member,	125
if any, of that prize winner's family legally responsible for the	126
care of that prize winner.	127

(C) No right of any prize winner, as defined in section	128
3770.10 of the Revised Code, to a prize award shall be the subject	129
of a security interest or used as collateral.	130

(D)(1) No right of any prize winner, as defined in section	131
3770.10 of the Revised Code, to a prize award shall be assignable,	132
or subject to garnishment, attachment, execution, withholding, or	133
deduction, except as follows: as provided in sections 3119.80,	134
3119.81, 3121.02, 3121.03, and 3123.06 of the Revised Code; when	135
the payment is to be made to the executor or administrator, or the	136
trustee of a trust, of the estate of a winning ticket holder; when	137
the award of a prize is disputed, any person may be awarded a	138
prize award to which another has claimed title, pursuant to the	139
order of a court of competent jurisdiction; when a person is	140
awarded a prize award to which another has claimed title, pursuant	141
to the order of a federal bankruptcy court under Title 11 of the	142
United States Code; when the director is to make a payment	143
pursuant to section 3770.071 or 3770.073 of the Revised Code; or	144
as provided in sections 3770.10 to 3770.14 of the Revised Code.	145

(2) The state lottery commission shall adopt rules pursuant	146
to section 3770.03 of the Revised Code concerning the payment of	147
prize awards upon the death of a prize winner, as defined in	148
section 3770.10 of the Revised Code. Upon the death of a prize	149
winner, the remainder of the prize winner's prize award, to the	150
extent it is not subject to a transfer agreement under sections	151
3770.10 to 3770.14 of the Revised Code, may be paid to the	152
executor, administrator, or trustee in the form of a discounted	153
lump sum cash settlement.	154

(E) No lottery prize award shall be awarded to or for any	155
officer or employee of the state lottery commission, any officer	156
or employee of the auditor of state actively coordinating and	157
certifying commission drawings, or any blood relative or spouse of	158
such an officer or employee of the commission or auditor of state	159
living as a member of the officer's or employee's household, nor	160
shall any such officer, employee, blood relative, or spouse	161
attempt to claim a lottery prize award.	162

(F) The director may prohibit vendors to the state lottery	163
commission and their employees from being awarded a lottery prize	164
award.	165

(G) Upon the payment of prize awards pursuant to this	166
section, the director and the state lottery commission are	167
discharged from all further liability for their payment.	168

Sec. 3770.071. (A)(1) If the amount of the prize money or	169
the cost of goods or services awarded as a lottery prize award is	170
six hundred dollars or more, the director of the state lottery	171
commission, or the director's designee, shall require the person	172
entitled to the prize award to affirm in writing, under oath,	173
whether or not the person is in default under a support order. The	174
director or the director's designee also may take any additional	175
appropriate steps to determine if the person entitled to the prize	176
award is in default under a support order. If the person entitled	177
to the prize award affirms that the person is in default under a	178
support order, or if the director or the director's designee	179
determines that the person is in default under a support order,	180
the director or the director's designee shall temporarily withhold	181
payment of the prize award and ~~inform~~notify the ~~court~~child	182
support enforcement agency that ~~issued~~administers the support	183
order that the person is entitled to a prize award, of the amount	184
of the prize award, and, if the prize award is to be paid in	185
annual installments, of the number of installments.	186

~~After~~(2) Upon receipt of the notice from the director or the	187
director's designee, the ~~court shall give the person notice of the~~	188
~~director's notice, schedule a hearing to determine if the person~~	189
~~is in default and the amount of the default, and give the person~~	190
~~notice of the date, time, and location of the hearing~~child	191
support enforcement agency shall conduct an investigation to	192
determine whether the person entitled to the lottery prize award	193
is subject to a final and enforceable determination of default	194
made under sections 3123.01 to 3123.07 of the Revised Code. If the	195
~~court at the hearing~~agency determines that the person is in	196
~~default~~so subject, it shall issue an ~~order~~intercept directive as	197
described in section 3123.89 of the Revised Code to the director	198
at lottery commission headquarters requiring the director or the	199
director's designee to deduct from any unpaid prize award or any	200
annual installment payment of ~~the~~an unpaid prize award, a	201
specified amount for ~~child support or spousal~~ support in	202
satisfaction of the support order under which the person is in	203
default. To the extent possible, the amount specified to be	204
deducted under the ~~order issued under this section~~intercept	205
directive shall satisfy the amount ordered for ~~support or spousal~~	206
support in the support order under which the person is in default.	207
~~Within~~	208

A child support enforcement agency shall issue an intercept	209
directive within thirty days from the date the director or the	210
director's designee notifies the agency under division (A)(1) of	211
this section. Within thirty days after the date on which the ~~court~~	212
agency issues the ~~order under this section to the director~~	213
intercept directive, the director or the director's designee shall	214
pay the amount specified in ~~that order~~the intercept directive to	215
the office of child support in the department of job and family	216
services. IfBut, if the prize award is to be paid in annual	217
installments, the director or the director's designee, on the date	218
the next installment payment is due, shall ~~pay~~deduct the amount	219
specified in the ~~court order issued under this section~~intercept	220
directive from that installment and, if necessary, any subsequent	221
annual installments, at the time ~~such~~those installments become	222
due and owing to the prize winner, and pay the amount to the	223
office of child support.	224

(1) "Support order" has the same meaning as in section	226
3119.01 of the Revised Code.	227

(2) "Default" has the same meaning as in section 3121.01 of	228
the Revised Code.	229