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

<-17State Lottery, the Department of Revenue shall:

18(1) Make reasonable efforts to determine if the 
19prizewinner <-is delinquent in the payment of Pennsylvania
 

1State taxes <-has an outstanding State tax liability prior to 
2making the lottery winnings payment. If the department 
3determines that the prizewinner <-is delinquent in the payment 
4of Pennsylvania State taxes <-has an outstanding tax liability 
5and all rights to appeal have expired, the department shall 
6deduct the amount of any such delinquent taxes from the 
7amount of lottery winnings and pay such amount to the 
8Commonwealth to satisfy or partially satisfy any <-such 
9delinquencies <-tax liability. Any deductions under this part 
10may only be made after the Department of Revenue determines 
11that either the prizewinner is not subject to a deduction for 
12delinquent support, or that, after deducting for delinquent 
13support, prize amounts remain that can be subject to 
14deduction for delinquent Pennsylvania State taxes. If 
15applicable, within 30 days of the date the prize was <-won 
<-16claimed, the Department of Revenue shall notify the 
17prizewinner that the prize or a portion of the prize was used 
18to satisfy or partially satisfy State delinquent taxes owed.

<-19(2) Request the Department of Public Welfare to make a
20reasonable effort to determine if the prizewinner is
21currently a recipient of public assistance benefits prior to
22making the lottery winnings payment. If the prizewinner is
23found to be a recipient of public assistance benefits, the
24Department of Public Welfare shall determine the
25prizewinner's eligibility to receive public assistance
26benefits.

<-27(b) Right to review.--A lottery prizewinner whose prize is

<-28(b) Right to review.--

29(1) A lottery prizewinner whose prize is used to satisfy 
30or partially satisfy an obligation under <-this section
 

<-1subsection (a)(1) may appeal to the Department of Revenue in 
2accordance with 2 Pa.C.S. (relating to administrative law and 
3procedure), except that no appeal may be taken under this 
4section regarding any Pennsylvania State tax delinquency. The 
5appeal shall be filed within 30 days after the prizewinner is 
6notified <-under subsection (a) by the Department of Revenue 
7that the prize has been reduced or totally withheld to 
8satisfy or partially satisfy the amount of the prizewinner's 
9State delinquent taxes due.

<-10(2) If it is determined under subsection (a)(2) that the
11prizewinner is no longer eligible for public assistance
12benefits, the Department of Public Welfare and the
13prizewinner shall be subject to the act of June 13, 1967 
14(P.L.31, No.21), known as the Public Welfare Code.

15(c) Administrative fee.--The Department of Revenue <-and the 
16Department of Public Welfare shall determine and set a fee which
17reflects the actual costs it incurs to administer this section
18and deduct the calculated amount from the lottery winnings <-if 
19the prizewinner is found to have an outstanding tax liability 
20subject to a deduction under subsection (a).

21(d) Report.--The Department of Revenue shall annually report
22to the Finance Committee of the Senate and the Finance Committee
23of the House of Representatives the amount of State delinquent
24taxes collected under this section.

25(e) Rules and regulations.--The Department of Revenue shall 
26promulgate rules and regulations necessary to carry out this 
27section.

28Section 2. This act shall take effect immediately.