AN ACT

 

1Amending the act of August 26, 1971 (P.L.351, No.91), entitled
2"An act providing for a State Lottery and administration
3thereof; authorizing the creation of a State Lottery
4Commission; prescribing its powers and duties; disposition of
5funds; violations and penalties therefor; exemption of prizes
6from State and local taxation and making an appropriation,"
7providing for lottery winnings intercept.

8The General Assembly of the Commonwealth of Pennsylvania
9hereby enacts as follows:

10Section 1. The act of August 26, 1971 (P.L.351, No.91),
11known as the State Lottery Law, is amended by adding a section
12to read:

13Section 316. Lottery winnings intercept.

14(a) Duty of Department of Revenue.--In the case of any 
15person winning a single lottery prize of more than $2,500 in the 
16State Lottery, the Department of Revenue shall make reasonable 
17efforts to determine if the prizewinner is delinquent in the 
18payment of Pennsylvania State taxes prior to making the lottery 
19winnings payment. If the department determines that the
 

1prizewinner is delinquent in the payment of Pennsylvania State 
2taxes, the department shall deduct the amount of any such 
3delinquent taxes from the amount of lottery winnings and pay 
4such amount to the Commonwealth to satisfy or partially satisfy 
5any such delinquencies. Any deductions under this part may only 
6be made after the Department of Revenue determines that either 
7the prizewinner is not subject to a deduction for delinquent 
8support, or that, after deducting for delinquent support, prize 
9amounts remain that can be subject to deduction for delinquent 
10Pennsylvania State taxes. If applicable, within 30 days of the 
11date the prize was won, the Department of Revenue shall notify 
12the prizewinner that the prize or a portion of the prize was 
13used to satisfy or partially satisfy State delinquent taxes 
14owed.

15(b) Right to review.--A lottery prizewinner whose prize is 
16used to satisfy or partially satisfy an obligation under this 
17section may appeal to the Department of Revenue in accordance 
18with 2 Pa.C.S. (relating to administrative law and procedure), 
19except that no appeal may be taken under this section regarding 
20any Pennsylvania State tax delinquency. The appeal shall be 
21filed within 30 days after the prizewinner is notified by the 
22Department of Revenue that the prize has been reduced or totally 
23withheld to satisfy or partially satisfy the amount of the 
24prizewinner's State delinquent taxes due.

25(c) Administrative fee.--The Department of Revenue shall
26determine and set a fee which reflects the actual costs it
27incurs to administer this section and deduct the calculated
28amount from the lottery winnings.

29(d) Report.--The Department of Revenue shall annually report
30to the Finance Committee of the Senate and the Finance Committee

1of the House of Representatives the amount of State delinquent
2taxes collected under this section.

3(e) Rules and regulations.--The Department of Revenue shall 
4promulgate rules and regulations necessary to carry out this 
5section.

6Section 2. This act shall take effect immediately.