1Providing for the payment of outstanding court-ordered fines and
2restitutions by the attachment of State tax refunds and
3lottery winnings.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Short title.

7This act shall be known and may be cited as the Lottery
8Winnings and State Income Tax Refunds Attachment Act.

9Section 2. Definitions.

10The following words and phrases when used in this act shall
11have the meanings given to them in this section unless the
12context clearly indicates otherwise:

13"Department." The Department of Revenue of the Commonwealth.

14"Obligee." A municipal or county court to whom a court-
15ordered fee or restitution is owed as a result of an
16adjudication against an individual.

17"Obligor." An individual to whom a court-ordered fine or

1restitution has been issued by a municipal or county court.

2"Refund." The amount of an overpayment of tax as determined
3under section 346 of the act of March 4, 1971 (P.L.6, No.2),
4known as the Tax Reform Code of 1971.

5Section 3. Lottery winnings intercept.

6(a) General rule.--In the case of a person winning more than
7$2,500 in the Pennsylvania State Lottery, the department shall
8make all reasonable efforts to determine if the winner is a
9delinquent obligor of court-ordered fees or restitution prior to
10making any lottery prize payment. If the winner is so found, the
11amount of any arrearages shall be deducted from the amount of
12the lottery prize and paid to the obligee.

13(b) Duties of department.--The department shall:

14(1) Cause a search to be made of the records relative to
15the Magisterial District Judge System (MDJS) and Common Pleas
16Case Management System (CPCMS) using the winner's full name
17and Social Security number.

18(2) If the winner is a delinquent obligor, ascertain the
19amount of the unpaid court-ordered fees and restitution and
20the identifier of the court order that underlies it.

21(3) Within 30 days of the date the prize was won, notify 
22the winner that the prize or a portion thereof will be used 
23to satisfy arrearages owed for court-ordered fees and 
24restitution.

25(4) Withhold from the obligor's lottery prize the amount
26of any arrearage discovered pursuant to the provisions of
27paragraph (1).

28(5) Within 45 days of the date of notice under paragraph
29(3), pay over, whether in a lump sum or by installment, to
30the proper municipal or county court that part of the prize

1that satisfies the arrearage, less any amount assigned to the
2department.

3(6) If the prize is insufficient to satisfy the
4arrearages owed under the court order, proceed as follows:

5(i) The department may pay over the prize as
6provided under this section.

7(ii) The department may reinitiate the procedures
8set forth in this section if the obligor wins a
9subsequent lottery prize.

10(7) Determine and set a fee that reflects the actual
11costs the department incurs to administer this section and
12deduct the calculated amount from the amount to be paid to
13the winner after the winner's court-ordered obligation has
14been fully satisfied.

15(c) Right to review.--A lottery winner whose prize is used
16to satisfy an obligation under this section may appeal to the
17department in accordance with 2 Pa.C.S. (relating to
18administrative law and procedure). The appeal shall be filed
19within 30 days after the winner is notified by the department
20that the prize has been reduced or totally withheld to satisfy
21the winner's outstanding arrearage.

22(d) Rules and regulations.--The department shall promulgate
23the rules and regulations necessary to carry out this section.

24Section 4. Income tax refund intercept.

25(a) General rule.--In the case of a taxpayer entitled to a
26refund of more than $2,500, the department shall make all
27reasonable efforts to determine if the taxpayer is a delinquent
28obligor of court-ordered fees or restitution prior to making any
29refund payment. If the winner is a delinquent obligor, the
30amount of any arrearages shall be deducted from the refund and

1paid to the obligee.

2(b) Duties of department.--The department shall:

3(1) Cause a search to be made of the records relative to
4the Magisterial District Judge System (MDJS) and Common Pleas
5Case Management System (CPCMS) using the full name and Social
6Security number of the taxpayer entitled to a refund.

7(2) If the taxpayer is a delinquent obligor, ascertain
8the amount of the unpaid court-ordered fees and restitution
9and the identifier of the court order that underlies it.

10(3) Within 30 days of the date of the search under
11paragraph (1), notify the taxpayer that the refund or a
12portion thereof will be used to satisfy arrearages owed for
13court-ordered fees and restitution.

14(4) Withhold from the taxpayer the amount of any
15arrearage discovered pursuant to the provisions of paragraph
16(1).

17(5) Within 45 days of the date of notice under paragraph
18(3), pay over, whether in a lump sum or by installment, to
19the proper municipal or county court that part of the refund
20that satisfies the arrearage, less any amount assigned to the
21department.

22(6) If the refund is insufficient to satisfy the
23arrearages owed under the court order, proceed as follows:

24(i) The department may pay over the refund as
25provided under this section.

26(ii) The department may reinitiate the procedures
27set forth in this section if the obligor is entitled to a
28subsequent refund.

29(7) Determine and set a fee that reflects the actual
30costs the department incurs to administer this section and

1deduct the calculated amount from the amount to be paid to
2the taxpayer after the taxpayer's court-ordered obligation
3has been fully satisfied.

4(c) Right to review.--A taxpayer whose refund is used to
5satisfy an obligation under this section may appeal to the
6department in accordance with 2 Pa.C.S. (relating to
7administrative law and procedure). The appeal shall be filed
8within 30 days after the taxpayer is notified by the department
9that the refund has been reduced or totally withheld to satisfy
10the taxpayer's outstanding arrearages.

11(d) Rules and regulations.--The department shall promulgate
12the rules and regulations necessary to carry out this section.

13Section 5. Notice of attachment.

14(a) Future orders.--All orders for the payment of fees or
15restitution as of the effective date of this section, as well as
16all orders for the payment of fees or restitution entered or
17modified after the effective date of this section, shall provide
18for mandatory attachment of lottery prizes and refunds if the
19obligor is in arrears in payment for a period of 30 days or
20more.

21(b) Notice to existing obligors.--The department shall send
22a one-time notice to all obligors of existing court orders
23informing them that arrearages may be intercepted as provided
24under sections 3 and 4.

25Section 6. Effective date.

26This act shall take effect in 60 days.