LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 20, 1997
         
         
      TO: Honorable Kenneth Armbrister, Chair            IN RE:  Senate Bill No. 1031
          Committee on State Affairs                              By: Patterson, Jerry
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1031 ( Relating 
to the assignment of a lottery prize.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by SB1031-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 would authorize a lottery prize winner to "assign" 
or transfer to another recipient, their prize winnings through 
a court order from either the district court where the assignor 
resides or  the district court in Travis County.  The Texas 
Lottery Commission would be required to establish procedures 
to account for and administer the assignments ordered.  The 
bill would authorize the commission to charge fees to recover 
any costs of administering prize assignments. 
 
Methodolgy
 
Administration of the prize assignment function in other states 
indicates that the process would be labor intensive.  Based 
on these experiences, the Texas Lottery Commission estimates 
that each assignment in Texas would cost $500 to administer 
and projects a total annual administration cost of approximately 
$31,000.
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           Probable Revenue   Change in Number   
            Savings/(Cost)     Gain/(Loss)  to    of State                                                
            to the Lottery     the Lottery        Employees from                                          
            Account/           Account/           FY 1997                                                 
            GR-Dedicated       GR-Dedicated                                                               
            5025               5025                                                                        
       1998         ($36,303)           $36,303               1.0                                    
       1998          (31,303)            31,303               1.0                                    
       2000          (31,303)            31,303               1.0                                    
       2001          (31,303)            31,303               1.0                                    
       2002          (31,303)            31,303               1.0                                    
 
 
         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 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