SRC-CDH S.B. 1031 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1031
By: Patterson
State Affairs
3-18-97
As Filed


DIGEST 

Currently, a lottery winner may receive either a lump sum payment from the
Texas Lottery Commission or yearly payouts.  This legislation would allow
the lottery winner to assign the prize to a third party, who would pay the
lottery winner for assigning the prize payments.     

PURPOSE

As proposed, S.B. 1031 establishes the assignment of a lottery prize. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 466.402(d), Government Code, to provide that the
state is discharged of all further liability on the payment of a prize
under Section 466.410. 

SECTION 2. Amends Section 466.406, Government Code, as follows:

Sec. 466.406.  New heading:  RIGHT TO PRIZE.  Deletes the provision
stipulating that the right of any person to a prize is not assignable.
Makes conforming changes. 

SECTION 3. Amends Chapter 466I, Government Code, by adding Section
466.410, as follows: 

Sec. 466.410.  ASSIGNMENT OF PRIZES.  Sets forth the terms by which a
person is authorized to assign the right to receive prize payments that
are paid in installments over time by the Texas Lottery Commission
(commission) if the assignment is made to a person designated by an order
of a certain district court.  Establishes the conditions under which a
district court is required to issue an order approving a voluntary
assignment and directing the commission to direct prize payments in whole
or in part to the assignee if the assignment is in writing, executed by
the assignor, and subject to the laws of the state; and the assignor
provides a sworn affidavit stating certain facts about the assignor's
soundness of mind, understanding of the procedure regarding the assignment
of prizes,  and receipt of a written disclosure statement.  Prohibits a
voluntary assignment from including or covering payments subject to any
offset provided by this chapter.  Sets forth the terms by which the
commission is required to establish and collect a reasonable fee to defray
administrative expenses. Establishes the conditions under which a
prizewinner does not have a right to assign prize payments.  Requires the
director of the lottery division established by the commission, after
receiving a letter or ruling from the Internal Revenue Service or a
published decision of the court, to file a copy of the document with the
secretary of state, after which time the prizewinner is ineligible to
assign a prize.   

SECTION 4. Effective date:  September 1, 1997.

SECTION 5. Emergency clause.