By Wilson                                             H.B. No. 3076
         76R5023 GJH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the assignment of lottery winnings for the payment of
 1-3     reasonable attorney's fees.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 466.310, Government Code, is amended by
 1-6     amending Subsection (a)  and by adding Subsection (c) to read as
 1-7     follows:
 1-8           (a)  Except as provided by this section, a [A] person commits
 1-9     an offense if the person:
1-10                 (1)  induces another person to assign or transfer a
1-11     right to claim a prize;
1-12                 (2)  offers for sale the right to claim a prize; or
1-13                 (3)  offers, for compensation, to claim the prize of
1-14     another person.
1-15           (c)  A contract between a person entitled to a prize or a
1-16     portion of a prize and an attorney that assigns to the attorney the
1-17     right to receive from a prize payment the reasonable attorney's
1-18     fees for establishing the person's ownership of the prize or a
1-19     portion of the prize is not  an assignment or transfer of a right
1-20     to claim a prize under Subsection (a)(1) and is not an offense
1-21     under this section.
1-22           SECTION 2.  Section 466.406, Government Code, is amended by
1-23     adding Subsections (d) and (e) to read as follows:
1-24           (d)  A person entitled to a prize or a portion of a prize may
 2-1     by contract assign to an attorney the right to receive from a prize
 2-2     payment the reasonable attorney's fees for establishing the
 2-3     person's ownership of the prize or portion of the prize.
 2-4           (e)  The right of an attorney to receive an assignment under
 2-5     Subsection (d) that is to be paid in installments by the commission
 2-6     is not assignable by the attorney to another person.
 2-7           SECTION 3.  Sections 466.407(a) and (b), Government Code, are
 2-8     amended to read as follows:
 2-9           (a)  The executive director shall deduct the amount of a
2-10     delinquent tax or other money from the winnings of a person who has
2-11     been finally determined to be:
2-12                 (1)  delinquent in the payment of a tax or other money
2-13     collected by the comptroller, the Texas Workforce Commission, or
2-14     the Texas Alcoholic Beverage Commission;
2-15                 (2)  delinquent in making child support payments
2-16     administered or collected by the attorney general;
2-17                 (3)  delinquent in reimbursing the Texas Department of
2-18     Human Services for a benefit granted in error under the food stamp
2-19     program or the program of financial assistance under Chapter 31,
2-20     Human Resources Code;
2-21                 (4)  in default on a loan made under Chapter 52,
2-22     Education Code;  [or]
2-23                 (5)  in default on a loan guaranteed under Chapter 57,
2-24     Education Code; or
2-25                 (6)  obligated by contract under Section 466.406(d) to
2-26     assign a portion of the winnings to an attorney who represents the
2-27     person for the purpose of establishing the person's ownership
 3-1     interest in the winnings.
 3-2           (b)  If a person's winnings exceed delinquencies and
 3-3     contractual obligations [a delinquency] under Subsection (a), the
 3-4     director shall  pay the balance to the person.  The director shall
 3-5     transfer the amount deducted directly to the appropriate agency or
 3-6     the attorney entitled to the assignment.
 3-7           SECTION 4.  Subchapter I, Chapter 466, Government Code, is
 3-8     amended by adding Section 466.410 to reads as follows:
 3-9           Sec. 466.410.  ASSIGNMENT OF PRIZES.  (a)  A person may
3-10     assign by contract the right to receive a prize payment or  a
3-11     portion of a prize payment only if the assignment is made for
3-12     reasonable attorney's fees to an attorney who is retained by the
3-13     person to establish the person's ownership in the prize payment.
3-14           (b)  To make an assignment under this section, the person
3-15     who claims an ownership interest in the prize and the retained
3-16     attorney must file separate sworn affidavits requesting the
3-17     assignment be made and stating the nature and terms of the
3-18     assignment contract.
3-19           (c)  Any suit filed relating to an assignment under this
3-20     section must be filed in a district court in Travis County.  The
3-21     commission may intervene in the suit.
3-22           SECTION 5.  This Act takes effect September 1, 1999, and
3-23     applies only to a lottery prize awarded on or after that date. A
3-24     lottery prize awarded before that date is governed by the law in
3-25     effect on the day the prize was awarded, and that law is continued
3-26     in effect for that purpose.
3-27           SECTION 6.  The importance of this legislation and the
 4-1     crowded condition of the calendars in both houses create an
 4-2     emergency and an imperative public necessity that the
 4-3     constitutional rule requiring bills to be read on three several
 4-4     days in each house be suspended, and this rule is hereby suspended.