SRC-PNG S.B. 1117 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1117
By: Armbrister
Finance
4/9/1999
As Filed


DIGEST 

Currently, under Texas law, large state lottery prizes are paid out over a
period of 20 years, and are not assignable.  This bill would allow and
regulate the assignability of lottery prize payment streams. 

PURPOSE

As proposed, S.B. 1117 allows and regulates the assignability of lottery
prize payment streams. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 466.402(d), Government Code, to make a
conforming change. 

SECTION 2. Amends Section 466.406, Government Code, as follows:

Sec.  466.406.  New heading: RIGHT TO PRIZE.  Requires the payment of a
prize to be made to the estate of a deceased prizewinner.  Deletes text
prohibiting the assignment of a lottery prize payment.  Makes conforming
changes. 

SECTION 3. Amends Chapter 466I, Government Code, by adding Section 466.410,
as follows: 

Sec.  466.410.  ASSIGNMENT OF PRIZES.  Authorizes a person to assign, in
whole or in part, the right to receive prize payments that are paid by the
Texas Lottery Commission (commission) in installments over time if the
assignment is made to a person designated by an order of a district court
of the county where the assignor resides or Travis County. Requires a
district court to issue an order approving a voluntary assignment and
directing the commission to direct prize payments in whole or in part to
the assignee under certain conditions.  Prohibits a voluntary assignment
from including or covering payments or portions of payments that are
subject to any offset provided by this chapter.  Requires the commission to
establish and collect a reasonable fee to defray any administrative
expenses associated with an assignment made under this section.  Requires
the commission to establish the amount of the fee to reflect the direct and
indirect costs associated with processing the assignment.  Sets forth the
conditions under which a prizewinner does not have a right to assign prize
payments.  Requires the director of the lottery division (director) to
immediately file a copy of the letter, ruling, or published decision with
the secretary of state, after receiving a letter or ruling from the
Internal Revenue Service or a published decision of a court as provided by
Subsection (e).  Provides that when the director files a copy of the
letter, ruling, or published decision with the secretary of state, a
prizewinner is ineligible to assign a prize under this section. 

SECTION 4.  Amends Section 466.403, Government Code, to prohibit the
commission from altering the timing or amount of scheduled payments or
otherwise accelerate, defer, commute, or discount such scheduled payments,
with regard to any prize money to be paid in installments in accordance
with a schedule established by the commission at the time of the award,
except as otherwise provided by this chapter. 
 
SECTION 5. Effective date: September 1, 1999.

SECTION 6. Emergency clause.