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


Senate Research CenterC.S.S.B. 1031
By: Patterson
State Affairs
4-17-97
Committee Report (Substituted)


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, C.S.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 Travis County district court.  Authorizes the commission to intervene
in a proceeding, but establishes that it is not a necessary or
indispensable party in the proceeding.  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 a copy of the petition and the notice are
served on the executive director by a certain date; 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 age, soundness of mind, understanding of the procedure
regarding the assignment of prizes,  and receipt of a written disclosure
statement. Requires the court to include certain findings in its order.
Provides that it is the prizewinner's responsibility to bring his or her
marital status to the court's attention, and establishes specific
provisions for a prizewinner who is married.  Requires the commission to
fulfill certain responsibilities after receiving a certified copy of a
court order.  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.    

SUMMARY OF COMMITTEE CHANGES

SECTION 3.

Amends Section 466.410, Government Code, to authorize the commission to
intervene in a proceeding, but establishes that it is not a necessary
party in the proceeding.  Changes the terms by which a district court is
required to issue an order directing the commission to direct prize
payments to the assignee, and under which the court shall include certain
findings in its order.  Provides that it is the responsibility of the
prizewinner to bring to the attention of the court the prizewinner's
marital status, and requires the prizewinner to fulfill certain
requirements if married.  Sets forth the commission's responsibilities
upon receiving a certified copy of a court order.