CN H.B. 2424 75(R)BILL ANALYSIS JUVENILE JUSTICE & FAMILY ISSUES H.B. 2424 BY: PUENTE 4-4-97 Committee Report (Amended) BACKGROUND Under current law, the Lottery Commission is authorized to deduct from a persons' winnings for delinquent child support only if the child support payments are administered or collected by the Attorney General. PURPOSE As proposed HB 2424 would mandate child support deduction from lottery prizes paid in periodic installments that are won by persons owing child support. Upon determination by the executive director that the winner will receive a periodic installment prize, and the subsequent receipt by the executive director of a copy of a court order, a writ of withholding under Chapter 158 of the Family Code, or a notice of child support lien issued under the Subchapter G, Chapter 157 of the Family Code, the Lottery Commission's executive director would be required to deduct and transfer the amount of delinquent child support from the prize winnings, in the manner in which the periodic installment prize is paid, to the clerk of the court that issued the order, writ, or notice. Any prize winnings over the amount of child support owed would be paid to the prize claimant. The Lottery Commission would adopt the necessary rules to implement HB 2424. RULEMAKING AUTHORITY It is the committee's opinion that this bill does expressly grant rulemaking authority to the State Lottery Commission to effect legislated deductions from lottery winnings. SECTION BY SECTION ANALYSIS Section 1: Amends Subchapter I, Chapter 466, Government Code, by adding Section 466.4075 DEDUCTION OF CHILD SUPPORT FROM CERTAIN LOTTERY WINNINGS. a) this action applies only to a prize amount of $600 or more and that is paid in periodic installments. b) executive director shall deduct an amount a court has ordered from periodic installment winnings if the director has been provided with a certified copy of a court order, writ of withholding, or a notice of a child support lien. c) the child support must be paid in the manner in which the periodic installment prize is paid. The director is not required to receive the order, writ, or notice of child support to be paid until the director determines there is a periodic installment prize to which the winner is entitled. d) the director shall pay the balance to the claimant if winnings exceed the amount owed for child support or other authorized deductions. The director shall transfer the child support deduction to the clerk of the court that issued the court order, writ withholding, or the notice of a child support lien. e) Authorizes the Lottery Commission to adopt rules 1) allowing a person with a court order issued under Chapter 157 and 158, Family Code, to file copies of the order with the commission. 2) describing procedures used by the commission to identify child support obligors and deduct from those persons winning periodic installment prizes. Section 2: Emergency Clause CJ H.B. 2424 75(R) EXPLANATION OF AMENDMENT The amendment stipulates that the child support payments paid by winners of periodic installment prizes shall be disbursed in a manner consistent with the installment payments of the prize, that a certified copy of the order, writ or notice directing child support to be paid shall be provided to the executive director, and that the executive director is not required to receive the order, writ or notice until the executive director has made a determination that the winner is entitled to a periodic installment prize. Clarifies in (e)2 that list of winners used to identify child support obligors shall be a list of persons winning periodic installment prizes. Adds new (c) and renumbers subsections accordingly.