PRINTER'S NO. 1364
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1046
Session of
2015
INTRODUCED BY HARKINS, KOTIK, MILLARD, A. HARRIS, BARRAR,
D. COSTA, BOBACK, COHEN, DeLUCA, KORTZ, MAHONEY, SONNEY AND
MURT, APRIL 27, 2015
REFERRED TO COMMITTEE ON JUDICIARY, APRIL 27, 2015
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.
"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.
"Obligor." An individual to whom a court-ordered fine or
restitution has been issued by a municipal or county court.
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"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.--In the case of a person winning more than
$2,500 in the Pennsylvania State Lottery, the department shall
make all reasonable efforts to determine if the winner is a
delinquent obligor of court-ordered fees or restitution prior to
making any lottery prize payment. If the winner is so found, the
amount of any arrearages shall be deducted from the amount of
the lottery prize and paid to the obligee.
(b) Duties of department.--The department shall:
(1) Cause a search to be made of the records relative to
the Magisterial District Judge System (MDJS) and Common Pleas
Case Management System (CPCMS) using the winner's full name
and Social Security number.
(2) If the 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 winner that the prize or a portion thereof will be used
to satisfy arrearages owed for court-ordered fees and
restitution.
(4) Withhold from the obligor's lottery prize the amount
of any arrearage discovered pursuant to the provisions of
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 prize
that satisfies the arrearage, less any amount assigned to the
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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
set forth in this section if the obligor wins a
subsequent lottery prize.
(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 winner after the 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 winner is notified by the department
that the prize has been reduced or totally withheld to satisfy
the winner's outstanding arrearage.
(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 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
refund payment. If the winner is a delinquent obligor, the
amount of any arrearages shall be deducted from the refund and
paid to the obligee.
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(b) Duties of department.--The department shall:
(1) Cause a search to be made of 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) Withhold from the taxpayer the amount of any
arrearage discovered pursuant to the provisions of 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 arrearage, 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
set forth in this section if the obligor is entitled to a
subsequent refund.
(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
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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 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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