TO: All IV-D Agents Information Release #884

COMMONWEALTH OF KENTUCKY Cabinet for Families and Children Department for Community Based Services

TO: All IV-D Agents Information Release #884 Staff Information Memorandum 01-10 Division Of Child Support Division Of Service Regions Child Support Section

FROM: Dietra Paris Commissioner

DATE: May 23, 2001

SUBJECT: Lottery Winnings Intercept

Kentucky Revised Statute (KRS) 154A.060 and KRS 405.463 requires the Kentucky Lottery Corporation (KLC) and the Cabinet for Families and Children (CFC) to develop a system to allow KLC to receive a list of delinquent child support obligors from CFC on a monthly basis. KLC will withhold delinquent amounts from prizes of winners that appear on the list. This system must be timely and must not create an unavoidable delay in the payment of a lottery prize.

CFC has entered into an agreement with KLC to intercept lottery winnings of $500 or more from noncustodial parents or obligors who owe arrearages to the Division of Child Support (DCS). Up to 100% of the lottery winning or the arrearage amount, whichever is less, can be intercepted.

The Kentucky Automated Support and Enforcement System (KASES) is responsible for having a magnetic tape run quarterly to identify noncustodial parents or obligors who meet the arrearage criteria. KASES is also responsible for having a magnetic tape run monthly to modify the arrearage balances. This tape is sent to DCS, and DCS forwards it to KLC. The tape contains each noncustodial parent’s or obligor’s name, social security number, and arrearage amount.

KLC sends any intercepted winnings to the Accounting Branch in Quality Central. The money is posted to KASES as a regular payment and is applied first to current support, if owed, and then to arrearages.

The Advance Notice of Intent to Collect Past-Due Support (Form CS- 122) is used, in part, to notify a noncustodial parent or obligor that his or her name is being referred to KLC for the collection of past-due support. The CS-122 is batch generated by KASES and is sent to the noncustodial parent or obligor once a year by first class mail.

Cross Reference: Operations’ Manual Subsection 24.050, Lottery Winnings Intercept