LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 1, 1997 TO: Honorable Toby Goodman, Chair IN RE: House Bill No. 2424 Committee on Juvenile Justice and Family Issues By: Puente House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2424 ( Relating to deductions of the amount of certain child support awards from lottery winnings.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2424-As Introduced Implementing the provisions of the bill would result in a net impact of $0 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 amends the Texas Lottery Act to require the deduction of child support obligations from lottery winnings. The executive director of the Texas Lottery Commission would be required to deduct amounts for child support from a person's winnings on the basis of a court order, writ of withholding or notice of a child support lien filed with the commission. The commission would be required to adopt rules and develop administrative procedures to implement a system for receiving, maintaining and monitoring the filings and updates on a continuing basis. Commission operations for information systems, legal services, financial administration would need to be expanded to accommodate this new child support intercept process. Methodolgy Prizes valued at more than $599 are paid by the commission centrally and would be subject to this new component of child support payment intercept. The Attorney General's Office estimates there are 300,000 cases with child support orders in Texas that are not administered by their office but which could become part of the commission's workload. The commission estimates that implementation of the bill would require the addition of 24 full-time equivalent staff positions in support of the new process. New staff and related capital outlay would involve the Information Systems Division, Legal Division and the Financial Administration Division. A child support section would be created to administer the new process. 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 Lottery Employees from Account/ FY 1997 GR-Dedicated 5025 1998 ($782,361) 24.0 1998 (662,361) 24.0 2000 (662,361) 24.0 2001 (662,361) 24.0 2002 (662,361) 24.0 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 $0 1999 0 2000 0 2001 0 2002 0 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No significant fiscal implication to units of local government is anticipated. Source: Agencies: 304 Comptroller of Public Accounts 302 Office of the Attorney General 362 Texas Lottery Commission LBB Staff: JK ,CB ,PH ,JC