Can an 18, 19, or 20-year-old in Texas collect a lottery prize directly, or does it have to go through an adult?

TX AG Opinion GA-0410: How does Texas pay a lottery prize to someone aged 18 to 20?

Plain-English summary

The Chair of the Texas Lottery Commission asked a question that sounds simple but turns on two different statutes. Can the Commission award the cash equivalent of a prize to a person who is at least 18 but not yet 21? It came up in the context of a "second-chance drawing," where someone mails in a non-winning scratch-off ticket for a chance to win a merchandise prize.

The opinion explained that the age to buy a ticket and the age to directly collect a prize are set by separate laws. Government Code section 466.3051, from the 1991 law that created the Texas Lottery, bars selling a ticket to anyone under 18 and lets a person 18 or older buy a ticket as a gift for someone younger. But how a prize gets paid to a "minor" is governed by section 466.405, which the legislature enacted in its current form in 1993. That section defines "minor," and the other terms it uses, by pointing to chapter 141 of the Property Code.

Here is the twist. In 1991 the Property Code defined "minor" as someone younger than 18. In 1995, when Texas adopted the Texas Uniform Transfers to Minors Act, the legislature changed that definition to someone younger than 21. Because section 466.405 borrows the Property Code definition, the change carried over: for lottery prize-payment purposes, a "minor" is now anyone under 21. The opinion found nothing suggesting the legislature meant to keep the old age-18 definition for the lottery, and noted the change simply extended to the 18-to-20 group the same prize-receipt rules that used to apply only to those under 18.

So the answer was yes, the Commission must pay the cash equivalent of a non-money prize to an 18-to-20-year-old, but it has to follow section 466.405. For a cash equivalent under $600, the director may pay by a warrant payable to the minor, delivered to an adult family member or the minor's guardian. For $600 or more, the director may deposit the money in a bank to the credit of an adult family member or guardian acting as custodian. The opinion conceded the result seems odd, since an 18-year-old can buy a ticket but cannot directly collect such a prize until 21, but concluded it followed the plain language the legislature chose.

Currency note

This opinion was issued in 2006. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

The lottery and Property Code provisions discussed here may have been amended since 2006. Anyone handling a lottery prize payment to a young winner today should check the current Government Code section 466.405 and the current Property Code definitions rather than rely on this opinion.

Who this opinion affected (as of 2006)

The Texas Lottery Commission: The opinion told the Commission that a winner aged 18 to 20 is a "minor" for prize-payment purposes and that it had to pay the cash equivalent of a non-money prize through the section 466.405 mechanisms (adult family member, guardian, or custodian), not directly to the young winner.

Lottery winners aged 18 to 20: It meant that even though they could legally buy tickets, they could not directly receive certain prizes; the money or cash equivalent would route through an adult relative, guardian, or custodian.

Parents, guardians, and adult relatives: It identified who could receive a prize on the young winner's behalf, with the powers and duties of a custodian under the Texas Uniform Transfers to Minors Act.

Common questions

Is an 18-year-old a "minor" for Texas lottery prizes?
Yes. The opinion concluded that for the State Lottery Act, a "minor" is anyone under 21, because section 466.405 uses the Property Code definition, which the legislature raised to 21 in 1995.

Can someone aged 18 to 20 collect a prize directly?
Not the cash equivalent of a non-money prize. The opinion explained it must be paid under section 466.405, through an adult family member or guardian (under $600) or by bank deposit to an adult custodian ($600 or more).

If you can buy a ticket at 18, why can't you collect at 18?
The opinion acknowledged this seems anomalous but concluded it follows the statutes as written: the ticket-sale age (section 466.3051) and the prize-payment age (section 466.405, tied to the Property Code) are set separately, and the latter was raised to 21.

Who can receive the prize for the young winner?
The opinion pointed to the Property Code definitions: an adult "member of the minor's family" (parent, stepparent, spouse, grandparent, sibling, uncle, or aunt) or a "guardian," who then holds the powers and duties of a custodian.

Background and statutory framework

Two statutes set the relevant ages. Government Code section 466.3051, enacted in the 1991 law creating the Texas Lottery, prohibits selling a ticket to anyone under 18, makes both the sales agent and an underage purchaser subject to the prohibition (a Class C misdemeanor for the seller; a fine up to $250 for an underage buyer), and allows a person 18 or older to buy a ticket as a gift for someone younger (Tex. Gov't Code Ann. § 466.3051, 466.3051(e)-(f) (Vernon 2004); Act of Aug. 13, 1991, 72d Leg., 1st C.S., ch. 6). Delivery of a prize to a minor is governed by section 466.405, enacted in its present form in 1993, which lets the director pay prize money under $600 by warrant delivered to an adult family member or guardian, pay $600 or more by bank deposit to an adult family member or guardian as custodian, and pay the cash equivalent of a non-money prize the same way; the person receiving payment has a custodian's powers under Property Code chapter 141, and the section's terms take their meanings from Property Code section 141.002 (Tex. Gov't Code Ann. § 466.405(a)-(e) (Vernon 2004); Act of Apr. 28, 1993, 73d Leg., R.S., ch. 107).

The definition of "minor" is the hinge. In 1991 the Property Code defined "minor" as someone younger than 18 (Act of May 26, 1983, 68th Leg., R.S., ch. 576, former § 141.002(12)). In 1995, adopting the Texas Uniform Transfers to Minors Act (modeled on the national Uniform Transfers to Minors Act), the legislature redefined "minor" as someone younger than 21, because the UTMA "extends custodianships to age 21" (Act of May 27, 1995, 74th Leg., R.S., ch. 1043; Tex. Prop. Code Ann. §§ 141.001, 141.002(11) (Vernon Supp. 2005)). Reading section 466.405 with the current Property Code definition, and finding no sign the legislature meant to exempt the lottery, the opinion construed both according to their plain language (In re Canales, 52 S.W.3d 698 (Tex. 2001)). It applied the Property Code definitions of "member of the minor's family" and "guardian" (Tex. Prop. Code Ann. § 141.002(8), (10) (Vernon Supp. 2005)) and concluded the Commission must award the cash equivalent of a prize to a person at least 18 but not yet 21 in accordance with section 466.405.

Citations

Statutes:

• Tex. Gov't Code Ann. §§ 466.3051, 466.3051(e)-(f), 466.405, 466.405(a)-(e) (Vernon 2004)
• Tex. Prop. Code Ann. §§ 141.001, 141.002, 141.002(8), (10), (11) (Vernon Supp. 2005)
• Act of Aug. 13, 1991, 72d Leg., 1st C.S., ch. 6; Act of Apr. 28, 1993, 73d Leg., R.S., ch. 107; Act of May 26, 1983, 68th Leg., R.S., ch. 576; Act of May 27, 1995, 74th Leg., R.S., ch. 1043

Cases:

• In re Canales, 52 S.W.3d 698 (Tex. 2001)

Source

• Landing page: https://www.texasattorneygeneral.gov/opinions/greg-abbott/ga-0410
• Original PDF: https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/2006/ga0410.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain - the linked PDF is authoritative.

ATTORNEY GENERAL OF TEXAS
GREG ABBOTT

March 13, 2006

Mr. C. Tom Clowe, Jr.
Chair, Texas Lottery Commission
Post Office Box 16630
Austin, Texas 78761-6630

Opinion No. GA-0410

Re: Whether the Texas Lottery Commission may award the cash equivalent of a prize to a person who is at least 18 years of age but not yet 21 years of age (RQ-0393-GA)

Dear Mr. Clowe:

You ask whether the Texas Lottery Commission may award the cash equivalent of a prize to a person who is at least 18 years of age but not yet 21 years of age.[1]

Two different statutes govern the minimum age at which a person may purchase a lottery ticket and the minimum age at which a person may directly receive prize money. Section 466.3051, which was enacted as part of the 1991 legislation that created the Texas Lottery, prohibits the sale of a lottery ticket to a person younger than 18 years of age. See Act of Aug. 13, 1991, 72d Leg., 1st C.S., ch. 6, § 2, sec. 4.02, 1991 Tex. Gen. Laws 197, 212 (now codified at TEX. GOV'T CODE ANN. § 466.3051 (Vernon 2004)). Both the sales agent who sells the ticket and the individual who purchases the ticket are subject to the prohibition. See id.[2] On the other hand, a "person 18 years of age or older may purchase a ticket to give as a gift to another person, including an individual younger than 18 years of age." Id. Since 1993, delivery of a prize to a person under 18 years of age has been governed by section 466.405 of the Government Code. See Act of Apr. 28, 1993, 73d Leg., R.S., ch. 107, § 4.03, 1993 Tex. Gen. Laws 195, 224-25. In that year the legislature amended the lottery statute by enacting the present version of section 466.405, which reads as follows:

(a) If a minor is entitled to prize money on a winning ticket in an amount less than $600, the director may make payment by delivery to an adult member of the minor's family, or to the minor's guardian, of a warrant payable to the order of the minor.

(b) If a minor is entitled to prize money on a winning ticket in an amount of $600 or more, the director may direct payment to the minor by depositing the amount of the prize in any bank to the credit of an adult member of the minor's family or of the minor's guardian as custodian of the minor.

(c) The director shall pay the cash equivalent of a prize other than prize money if the person entitled to claim the prize is a minor. Payment of the cash equivalent of a prize other than prize money to a minor shall be made as provided by Subsections (a) and (b).

(d) A person designated to receive payment on behalf of a minor has the power and duties of a custodian under Chapter 141, Property Code.

(e) In this section, "adult," "bank," "custodian," "guardian," "member of a minor's family," and "minor" have the meanings assigned by Section 141.002, Property Code.

TEX. GOV'T CODE ANN. § 466.405 (Vernon 2004). Thus, a minor is permitted to receive prize money under subsections (a) and (b) or to receive "the cash equivalent" of a prize under subsection (c). "Minor" was defined in 1993, and still is, by reference to chapter 141 of the Property Code.

In 1991, chapter 141 of the Property Code defined "minor" as "an individual who is younger than 18 years of age." See Act of May 26, 1983, 68th Leg., R.S., ch. 576, § 141.002, 1983 Tex. Gen. Laws 3475, 3700 (former Property Code section 141.002(12)). In 1995, that provision was amended to define "minor" as "an individual who is younger than 21 years of age." See Act of May 27, 1995, 74th Leg., R.S., ch. 1043, § 1, sec. 2, 1995 Tex. Gen. Laws 5177 (now codified at TEX. PROP. CODE ANN. § 141.002(11) (Vernon Supp. 2005)). Thus, when these two provisions are read together, prize money or "the cash equivalent of a prize" may be awarded to a person under 21 years of age only in accordance with subsections (a)-(c) of section 466.405 of the Government Code.

You specifically ask about the award of a prize to a minor in a "second-chance drawing" that you describe as a situation "in which a person may mail in a non-winning scratch-off ticket for a chance to win a merchandise prize in a drawing." Request Letter, supra note 1, at 2.

Section 466.405 of the Government Code has not been amended since 1993. There is no indication that the legislature that amended the Property Code definition of "minor" in 1995 from "an individual who is younger than 18 years of age" to "an individual who is younger than 21 years of age" intended that the change not be applicable to section 466.405. Indeed, the 1995 legislation that amended the Property Code was modeled on the "Uniform Transfers to Minors Act," which was established by the National Conference of Commissioners on State Laws, and is denominated the "Texas Uniform Transfers to Minors Act." See TEX. HOUSE RESEARCH ORGANIZATION, BILL ANALYSIS, Tex. H.B. 2268, 74th Leg., R.S. (1995) at 1; Act of May 27, 1995, 74th Leg., R.S., ch. 1043, § 1, sec. 1, 1995 Tex. Gen. Laws 5177 (now codified at TEX. PROP. CODE ANN. § 141.001 (Vernon Supp. 2005)). A bill analysis accompanying the 1995 legislation that adopted chapter 141 of the Property Code states that "[m]ost states have now adopted the Uniform Transfers to Minors Act" ("UTMA"). See TEX. HOUSE COMM. ON CIVIL PRACTICES, BILL ANALYSIS, Tex. H.B. 2268, 74th Leg., R.S. (1995) at 1. "UTMA provides greater flexibility and extends custodianships to age 21." See id. In effect, all that the legislature has done is to extend to the under 21 age group the same restrictions on receipt of prizes that originally applied only to persons under the age of 18. While this may seem an anomalous result in that persons between the ages of 18 and 21 are still permitted to purchase lottery tickets, we believe that it clearly comports with legislative intent. Thus, we construe both section 466.405 of the Government Code and section 141.002 of the Property Code according to their plain language. See In re Canales, 52 S.W.3d 698, 702 (Tex. 2001).

Section 466.405 of the Government Code provides the answer to your question. Under subsection (c), if a minor is entitled to "a prize other than prize money," the director of the Lottery Commission is instructed to "pay the cash equivalent" of the prize. If that "cash equivalent" is in an amount less than $600, "the director may make payment by delivery to an adult member of the minor's family, or to the minor's guardian, of a warrant payable to the order of the minor." TEX. GOV'T CODE ANN. § 466.405(a) (Vernon 2004). "Member of the minor's family" is defined by the Property Code as "the minor's parent, stepparent, spouse, grandparent, brother, sister, uncle or aunt, whether of whole or half blood or by adoption." TEX. PROP. CODE ANN. § 141.002(10) (Vernon Supp. 2005). "Guardian" means "a person appointed or qualified by a court to act as general, limited, or temporary guardian of a minor's property or a person legally authorized to perform substantially the same functions." Id. § 141.002(8).

Likewise, if the cash equivalent is an amount of $600 or more, "the director may direct payment to the minor by depositing the amount of the prize in any bank to the credit of an adult member of the minor's family or of the minor's guardian as custodian for the minor." TEX. GOV'T CODE ANN. § 466.405(b) (Vernon 2004). "Member of the minor's family" and "guardian" have the same meanings for purposes of subsection 466.405(b) as for subsection 466.405(a). See id. § 466.405(e).

We conclude therefore that the Texas Lottery Commission must award the cash equivalent of a prize to a person who is at least 18 years of age but not yet 21 years of age in accordance with the terms of section 466.405 of the Government Code.

SUMMARY

For purposes of the State Lottery Act, a "minor" is an individual who has not yet attained the age of 21 years. The Texas Lottery Commission must award the cash equivalent of a prize to a person who is at least 18 years of age but not yet 21 years of age in accordance with the terms of section 466.405 of the Government Code.

Very truly yours,

GREG ABBOTT
Attorney General of Texas

BARRY R. MCBEE
First Assistant Attorney General

ELLEN L. WITT
Deputy Attorney General for Legal Counsel

NANCY S. FULLER
Chair, Opinion Committee

Rick Gilpin
Assistant Attorney General, Opinion Committee

Footnotes

1. See Letter from C. Tom Clowe, Jr., Chair, Texas Lottery Commission, to Honorable Greg Abbott, Attorney General of Texas (Sept. 13, 2005) (on file with the Opinion Committee, also available at http://www.oag.state.tx.us) [hereinafter Request Letter].

2. The offense of selling a ticket to an individual under 18 years of age is a Class C misdemeanor; an individual under the age of 18 years who purchases a ticket commits an offense punishable by a fine not to exceed $250. TEX. GOV'T CODE ANN. § 466.3051(e)-(f) (Vernon 2004).