LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 1, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: House Bill No. 2424, As Engrossed
Committee on State Affairs By: Puente
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2424 ( Relating
to deductions from lottery winnings and compensation of the
amount of certain child support, taxes, and other payments.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB2424-As Engrossed
Implementing the provisions of the bill would result in a net
negative impact of $(401,212) to General Revenue Related Funds
through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would amend the State Lottery Act to mandate the deduction
of child support payments from lottery prizes paid over time
if won by a person owing child support.
The executive director
of the lottery would be required to deduct the amount of the
child support owed from the lottery prize winnings paid over
time if the executive director had been provided 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. Any prize
amount over the amount of child support owed would be paid to
the claimant. The executive director would transfer the child
support revenue to the clerk of the court that issued the order,
writ, or notice. The Lottery Commission (commission) would
adopt the rules necessary to implement this bill.
The bill
would require the lottery's executive director to deduct the
amount of certain delinquent tax or other money from compensation
payments made to a sales agent. Deductions would be taken:
for delinquent tax payments or other money collected by the
Comptroller, the Texas Workforce Commission, or the Texas Alcoholic
Beverage Commission; for delinquent child support payments;
or for a default on a loan made under Chapter 52 or Chapter
57 of the Education Code. Any of the sales agent's compensation
greater than the delinquency owed would be paid to the sales
agent. The director would transfer the amount withheld to the
appropriate agency.
The bill would require the Attorney
General, the Comptroller of Public Accounts, the Texas Workforce
Commission, the Texas Alcoholic Beverage Commission, the Texas
Higher Education Coordinating Board, and the Texas Guaranteed
Student Loan Corporation to provide the commission's executive
director with a report of persons determined to be delinquent.
The
bill would become effective immediately upon enactment, assuming
that it received the requisite two-thirds majority votes in
both houses of the Legislature. Otherwise, it would become
effective 90 days after adjournment.
Methodolgy
The bill would require the Texas Lottery Comission to modify
the Electronic Funds Transfer (EFT) computer application in
order to make the required deductions involving sales agents.
The TLC estimates this modification will cost $150,000.
The
commission estimates three additional FTEs would be needed to
carry out the sales agent collection portion of the bill. Two
retailer accountant specialists ($30,000 each) would be needed
to perform the manual adjustments to sales agents' accounts
and correspond with sales agents regarding the adjustments.
One programmer ($45,000) would be needed to develop and implement
the modified EFT computer application.
Equipment costs (computer,
furniture, etc.) for the new staff would total $15,000. Although
the initial cost would be out of General Revenue Dedicated Account
5025, it would ultimately be a cost to the General Reveue Fund
0001.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Change in Number
Savings/(Cost) of State
from General Employees from
Revenue Fund FY 1997
0001
1998 ($269,741) 3.0
1998 (131,471) 3.0
2000 (131,471) 3.0
2001 (131,471) 3.0
2002 (131,471) 3.0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($269,741)
1999 (131,471)
2000 (131,471)
2001 (131,471)
2002 (131,471)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 362 Texas Lottery Commission
304 Comptroller of Public Accounts
LBB Staff: JK ,JD ,PH