LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 17, 1997 TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 1031, Committee Report 1st House, Substituted 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-Committee Report 1st House, Substituted 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 the process to be a labor intensive one. 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 $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) from of State from Lottery Lottery Account/ Employees from Account/ GR-Dedicated FY 1997 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 LBB Staff: JK ,JD ,PH