The following provisions shall apply to the payment of any prizes in excess of five hundred dollars ($500):

1. (1) The Office of the Arkansas Lottery shall set off against any prize the sum of any debt in excess of one hundred dollars ($100) owed to the State of Arkansas or to persons on whose behalf the state and its claiming agencies act;
2. (2) Notice of any prize subject to a valid lien from the State of Arkansas will be sent to the winner by certified mail, return receipt requested, of the action and the reason the prizes were withheld;
3. (3) However, if the winner appears and claims prizes in person, the office shall notify the winner at that time by hand delivery of the action;
4. (4) If the winner does not protest the withholding of the prizes in writing within thirty (30) days of receipt of the notice, the office shall pay the prizes to the claimant agency;

5. (5) If the winner protests the withholding of the prizes within thirty (30) days of receipt of the notice, the office shall:

   1. (A) File an action in interpleader in the circuit court of the county where the winner resides;
   2. (B) Pay the disputed sum into the registry of that court; and
   3. (C) Give notice to the claimant agency and winner of the initiation of the action;

6. (6) Any liens submitted for collection by the office shall be ranked and collected in the following order:

   1. (A) Taxes due the state;
   2. (B) Delinquent child support;
   3. (C) Medicaid reimbursement; and
   4. (D) All other judgments and liens in order of the date entered or perfected; and

7. (7)

   1. (A) Any list of debt from a claimant agency to the office must be updated and electronically submitted to the office during the first week of every calendar quarter.
   2. (B) The office is not obligated to retain the lists beyond that quarter or deduct debts for lists that are not current.
   3. (C) The claimant agency shall pay the office for any and all costs incurred by the office for the setting off of debts.