LOTTERY WINNERS: REPAY BENEFITS - S.B. 193: FLOOR ANALYSIS

Senate Bill 193 (as reported without amendment)

Sponsor: Senator Michael J. Bouchard

Committee: Families, Mental Health and Human Resources

CONTENT

The bill would amend the Lottery Act to specify that, in the case of a liability to the State for receipt of assistance, administrative remedies under Senate Bill 188 would apply instead of a hearing under the Lottery Act.

The Lottery Act requires the Bureau of State Lottery, before paying any lottery prize of $1,000 or more, to determine whether Department of Treasury records show that a lottery winner has a current liability to the State or a support arrearage. If there is a liability or support arrearage, the Bureau must first apply the amount of the prize to the liability or arrearage before paying the remainder of the prize money, if any, to the lottery winner. The lottery winner may request a hearing concerning his or her liability by making a written request to the Revenue Commissioner.

MCL 432.32 - Legislative Analyst: P. Affholter

FISCAL IMPACT

It appears that Senate Bills 188 (S-1) and 193 could have an indeterminate fiscal impact on State government. The amendments would allow for the comparison of cash assistance recipients with lottery winners to target possible reimbursement by assistance grant recipients for payments received. This proposed system is similar to the method currently used by the Friend of the Court in conjunction with the Lottery Bureau and the State Department of Treasury to collect support payment arrearage or other liabilities to the State from lottery prizes over $1,000. It is uncertain how many cash assistance recipients have won or would win lottery prizes of $1,000 or more. However, the Family Independence Agency could monitor the process in order to determine the actual fiscal impact on State revenues.

Date Completed: 2-28-97 - Fiscal Analyst: C. Cole

- M. Ortiz

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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.