THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HARRIS, BARRAR, BENNINGHOFF, CALTAGIRONE, CARROLL, CAUSER, CHRISTIANA, COX, DAY, DUNBAR, FLECK, GABLER, GEIST, GILLESPIE, GRELL, GROVE, HESS, M.K. KELLER, F. KELLER, KILLION, KORTZ, MASSER, METCALFE, METZGAR, MILNE, MOUL, MULLERY, MUNDY, MURT, O'NEILL, PAYNE, PEIFER, PERRY, PYLE, QUIGLEY, REED, ROAE, ROCK, SAYLOR, SCAVELLO, STERN, VULAKOVICH, WATSON, JOSEPHS, MILLER, BEAR, FARRY, PASHINSKI AND HORNAMAN, FEBRUARY 8, 2011

AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, MARCH 2, 2011   

AN ACT

Amending the act of August 26, 1971 (P.L.351, No.91), entitled

"An act providing for a State Lottery and administration

thereof; authorizing the creation of a State Lottery

Commission; prescribing its powers and duties; disposition of

funds; violations and penalties therefor; exemption of prizes

from State and local taxation and making an appropriation,"

providing for lottery winnings intercept.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of August 26, 1971 (P.L.351, No.91),

known as the State Lottery Law, is amended by adding a section

to read:

Section 315.  Lottery winnings intercept.

(a)  Duty of Department of Revenue.--In the case of any

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person winning more than $2,500 in the State Lottery, the

Department of Revenue shall make all reasonable efforts to

determine if the winner is a delinquent State taxpayer prior to

making any lottery winnings payment. If the winner is so found,

the amount of any State delinquent taxes due shall be deducted

from the amount of lottery winnings and paid to the Commonwealth 

In the case of any person winning a single lottery prize of more

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than $2,500 in the State Lottery, the Department of Revenue

shall make reasonable efforts to determine if the prizewinner is

delinquent in the payment of Pennsylvania State taxes prior to

making the lottery winnings payment. If the department

determines that the prizewinner is delinquent in the payment of

Pennsylvania State taxes, the department shall deduct the amount

of any such delinquent taxes from the amount of lottery winnings

and pay such amount to the Commonwealth to satisfy or partially

satisfy any such delinquencies. Any deductions under this part

may only be made after the Department of Revenue determines that

either the prizewinner is not subject to a deduction for

delinquent support, or that, after deducting for delinquent

support, prize amounts remain that can be subject to deduction

for delinquent Pennsylvania State taxes. If applicable, within 

30 days of the date the prize was won, the Department of Revenue

shall notify the prizewinner that the prize or a portion of the

prize was used to satisfy or partially satisfy State delinquent

taxes owed.

(b)  Right to review.--A lottery prizewinner whose prize is

used to satisfy or partially satisfy an obligation under this

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section may appeal to the Department of Revenue in accordance

with 2 Pa.C.S. (relating to administrative law and procedure), 

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except that no appeal may be taken under this section regarding

any Pennsylvania State tax delinquency. The appeal shall be

filed within 30 days after the prizewinner is notified by the

Department of Revenue that the prize has been reduced or totally

withheld to satisfy or partially satisfy the amount of the

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prizewinner's State delinquent taxes due.

(c)  Administrative fee.--The Department of Revenue shall

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determine and set a fee which reflects the actual costs it

incurs to administer this section and deduct the calculated

amount from the lottery winnings.

(d)  Report.--The Department of Revenue shall annually report

to the Finance Committee of the Senate and the Finance Committee

of the House of Representatives the amount of State delinquent

taxes collected under this section.

(c) (e)  Rules and regulations.--The Department of Revenue

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shall promulgate rules and regulations necessary to carry out

this section.

Section 2.  This act shall take effect in 60 days 

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immediately.

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