DEDUCT DHS DEBTS FROM LOTTERY WINNINGS

House Bill 4855

Sponsor:  Rep. Kenneth Kurtz

Committee:  Families, Children, and Seniors

Complete to 1-21-14

A SUMMARY OF HOUSE BILL 4855 AS INTRODUCED 6-20-13

The bill would require the Lottery Bureau, before payment of a prize of $1,000 or more, to determine whether records of the Department of Human Services show that the lottery winner has any current liability to it.  If a debt to the DHS is identified, after ascertaining the amount owed by the lottery winner, the Lottery Bureau would be required to apply prize money to the amount owed to the DHS. 

Debts owed to the DHS, however, would follow in order of priority any liability to the state, to child support arrearages, and to unemployment compensation debt.  A debt owed to the department would have a higher priority than amounts owed to a court.  The bill would amend the McCauley-Traxler-Law-Bowman-McNeely Lottery Act (MCL 432.32).

Under the bill, in regard to information provided by the DHS to the Lottery Bureau, the bureau would be subject to the same confidentiality restrictions as the DHS prescribed by federal regulations governing temporary assistance to needy families or other federal programs or rules of the department.

[Note:  Similar legislation was enacted in 2012 applying to amounts lottery winners owe to unemployment compensation debts.]

FISCAL IMPACT:

House Bill 4855 would have a positive fiscal impact on the Department of Human Services to the extent that lottery winnings are garnished to pay current liabilities.

 

House Bill 4855 would have an indeterminate, but likely negligible, fiscal impact on the Bureau of State Lottery.  It is possible that the provisions of the bill would increase administrative costs for the Bureau of State Lottery. However, the costs are would likely be absorbed under current appropriation levels.

                                                                                           Legislative Analyst:   E. Best

                                                                                                  Fiscal Analyst:   Ben Gielczyk

                                                                                                                           Kevin Koorstra

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.