BILL ANALYSIS HUMAN SERVICES C.S.H.B. 159 By: Driver/Crabb/Oliveira 4-14-97 Committee Report (substituted) BACKGROUND The director of the state lottery is required to deduct from lottery prize winnings any delinquent taxes or other money collected by the comptroller, state treasurer or Texas Alcoholic Beverage Commission; delinquent child support payments administered or collected by the attorney general; and defaulted guaranteed student loans. People who receive state financial assistance or nutritional assistance under Chapters 31 and 33, Human Resources Code, receive an unearned windfall if they win large lottery prizes. In such cases, it is appropriate that they should be required to pay back to the state the financial assistance they received under Chapters 31 and 33. Such a provision in law could discourage people from using state financial assistance money under Chapter 31 to purchase lottery tickets. PURPOSE The purpose of this bill is to require recipients of state financial assistance or nutritional assistance under Chapters 31 and 33 of the Human Resources Code to pay the money back to the state if they win a large lottery prize. RULE MAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1.Amends Section 466.406(a), Government Code, to provide that the right to a lottery prize is not assignable, except as otherwise provided by this chapter. SECTION 2.Adds a new Section 466.4077 to Chapter 466, Government Code. Assignment of Right to Lottery Prize. Makes the filing of an application under Chapter 31 or 33, Human Resources Code, an assignment to the general revenue fund of any rights to a lottery prize of $600 or more, if the application is approved, the prize is won not more than 60 days after the date benefits are received, and if the Texas Department of Human Services maintains information adequate to support the validity of the assignment in the ordinary course of record keeping. Requires the lottery director to deduct the amount of the assignment from the prize, with the balance of winnings to be paid to the winner. Requires the Department of Human Services to provide the lottery director with information necessary to determine the amount of the assignment. SECTION 3.Effective September 1, 1995. Applies to assistance provided and lottery prizes won after that date. SECTION 4.Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE Amendment to Sec. 4066.406(a), Government Code, in Section 1 of committee substitute is not included in original. Original creates new Sec. 466.4075, Government Code, "Assignment of Right to Lottery Prize." Substitute instead creates new Sec. 466.4077. This section of original applies only to applications under Chapter 31, Human Resources Code. Substitute applies to application under Chapters 31 or 33, Human Resources Code; only to lottery prizes of $600 or more; only if prize is won within 60 days after benefits are received; and only to the extent the Department of Human Services maintains information in the normal course of record keeping.