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