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.