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PRINTER'S NO. 1534
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1266
Session of
2017
INTRODUCED BY HARKINS, MURT, MILLARD, SAINATO, ROZZI, SONNEY,
A. HARRIS, D. COSTA, GILLEN, HILL-EVANS, DeLUCA AND FARRY,
APRIL 24, 2017
REFERRED TO COMMITTEE ON JUDICIARY, APRIL 24, 2017
AN ACT
Providing for the payment of outstanding court-ordered fines and
restitutions by the attachment of State tax refunds and
lottery winnings.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Lottery
Winnings and State Income Tax Refunds Attachment Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Revenue of the Commonwealth.
"Lottery winner." An individual who wins more than $2,500 in
the Pennsylvania State Lottery.
"Obligee." A municipal or county court to whom a court-
ordered fee or restitution is owed as a result of an
adjudication against an individual.
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"Obligor." An individual to whom a court-ordered fine or
restitution has been issued by a municipal or county court.
"Refund." The amount of an overpayment of tax as determined
under section 346 of the act of March 4, 1971 (P.L.6, No.2),
known as the Tax Reform Code of 1971.
Section 3. Lottery winnings intercept.
(a) General rule.--When an individual becomes a lottery
winner, the department shall make all reasonable efforts to
determine if the lottery winner is a delinquent obligor prior to
making a lottery prize payment. If the lottery winner is found
to be a delinquent obligor, the arrearages shall be deducted
from the amount of the lottery prize and paid to the obligee.
(b) Duties of department.--The department shall perform the
following duties relating to a lottery winner:
(1) Search the records relative to the Magisterial
District Judge System (MDJS) and Common Pleas Case Management
System (CPCMS) using the lottery winner's full name and
Social Security number.
(2) If the lottery winner is a delinquent obligor,
ascertain the amount of the unpaid court-ordered fees and
restitution and the identifier of the court order that
underlies it.
(3) Within 30 days of the date the prize was won, notify
the lottery winner that the prize or a portion thereof will
be used to satisfy arrearages owed for court-ordered fees and
restitution.
(4) If the lottery winner is a delinquent obligor,
withhold from the lottery winner's prize the arrearages
discovered under paragraph (1).
(5) Within 45 days of the date of notice under paragraph
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(3), pay over, whether in a lump sum or by installment, to
the proper municipal or county court that part of the prize
that satisfies the arrearages, less any amount assigned to
the department.
(6) If the prize is insufficient to satisfy the
arrearages owed under the court order, proceed as follows:
(i) The department may pay over the prize as
provided under this section.
(ii) The department may reinitiate the procedures
prescribed in this section if the individual becomes a
lottery winner a second or subsequent time.
(7) Determine and set a fee that reflects the actual
costs the department incurs to administer this section and
deduct the calculated amount from the amount to be paid to
the lottery winner after the lottery winner's court-ordered
obligation has been fully satisfied.
(c) Right to review.--A lottery winner whose prize is used
to satisfy an obligation under this section may appeal to the
department in accordance with 2 Pa.C.S. (relating to
administrative law and procedure). The appeal shall be filed
within 30 days after the lottery winner is notified by the
department that the prize has been reduced or totally withheld
to satisfy the lottery winner's outstanding arrearages.
(d) Rules and regulations.--The department shall promulgate
the rules and regulations necessary to carry out this section.
Section 4. Income tax refund intercept.
(a) General rule.--In the case of a taxpayer who is entitled
to a refund of more than $2,500, the department shall make all
reasonable efforts to determine if the taxpayer is a delinquent
obligor of court-ordered fees or restitution prior to making any
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refund payment. If the taxpayer is a delinquent obligor, the
arrearages shall be deducted from the refund and paid to the
obligee.
(b) Duties of department.--The department shall perform the
following duties relating to a taxpayer described in subsection
(a):
(1) Search the records relative to the Magisterial
District Judge System (MDJS) and Common Pleas Case Management
System (CPCMS) using the full name and Social Security number
of the taxpayer entitled to a refund.
(2) If the taxpayer is a delinquent obligor, ascertain
the amount of the unpaid court-ordered fees and restitution
and the identifier of the court order that underlies it.
(3) Within 30 days of the date of the search under
paragraph (1), notify the taxpayer that the refund or a
portion thereof will be used to satisfy arrearages owed for
court-ordered fees and restitution.
(4) If the taxpayer is a delinquent obligor, withhold
from the taxpayer the arrearages discovered under paragraph
(1).
(5) Within 45 days of the date of notice under paragraph
(3), pay over, whether in a lump sum or by installment, to
the proper municipal or county court that part of the refund
that satisfies the arrearages, less any amount assigned to
the department.
(6) If the refund is insufficient to satisfy the
arrearages owed under the court order, proceed as follows:
(i) The department may pay over the refund as
provided under this section.
(ii) The department may reinitiate the procedures
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prescribed in this section if the taxpayer is entitled to
a second or subsequent refund of more than $2,500.
(7) Determine and set a fee that reflects the actual
costs the department incurs to administer this section and
deduct the calculated amount from the amount to be paid to
the taxpayer after the taxpayer's court-ordered obligation
has been fully satisfied.
(c) Right to review.--A taxpayer whose refund is used to
satisfy an obligation under this section may appeal to the
department in accordance with 2 Pa.C.S. (relating to
administrative law and procedure). The appeal shall be filed
within 30 days after the taxpayer is notified by the department
that the refund has been reduced or totally withheld to satisfy
the taxpayer's outstanding arrearages.
(d) Rules and regulations.--The department shall promulgate
the rules and regulations necessary to carry out this section.
Section 5. Notice of attachment.
(a) Future orders.--All orders for the payment of fees or
restitution as of the effective date of this section, as well as
all orders for the payment of fees or restitution entered or
modified after the effective date of this section, shall provide
for mandatory attachment of lottery prizes and refunds of taxes
paid to the Commonwealth if the obligor is in arrears in payment
for a period of 30 days or more.
(b) Notice to existing obligors.--The department shall send
a one-time notice to all obligors of existing court orders
informing them that arrearages may be intercepted as provided
under sections 3 and 4.
Section 6. Effective date.
This act shall take effect in 60 days.
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