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:

17(1) Make reasonable efforts to determine if the
18prizewinner has an outstanding State tax liability prior to
19making the lottery winnings payment. If the department

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

16(2) Request the Department of Public Welfare to make a
17reasonable effort to determine if the prizewinner is
18currently a recipient of public assistance benefits prior to
19making the lottery winnings payment. If the prizewinner is
20found to be a recipient of public assistance benefits, the
21Department of Public Welfare shall determine the
22prizewinner's eligibility to receive public assistance
23benefits.

24(b) Right to review.--

25(1) A lottery prizewinner whose prize is used to satisfy
26or partially satisfy an obligation under subsection (a)(1)
27may appeal to the Department of Revenue in accordance with 2
28Pa.C.S. (relating to administrative law and procedure),
29except that no appeal may be taken under this section
30regarding any Pennsylvania State tax delinquency. The appeal

1shall be filed within 30 days after the prizewinner is
2notified under subsection (a) by the Department of Revenue
3that the prize has been reduced or totally withheld to
4satisfy or partially satisfy the amount of the prizewinner's
5State delinquent taxes due.

6(2) If it is determined under subsection (a)(2) that the
7prizewinner is no longer eligible for public assistance
8benefits, the Department of Public Welfare and the
9prizewinner shall be subject to the act of June 13, 1967 
10(P.L.31, No.21), known as the Public Welfare Code.

11(c) Administrative fee.--The Department of Revenue and the
12Department of Public Welfare shall determine and set a fee which
13reflects the actual costs it incurs to administer this section
14and deduct the calculated amount from the lottery winnings if
15the prizewinner is found to have an outstanding tax liability
16subject to a deduction under subsection (a).

17(d) Report.--The Department of Revenue shall annually report
18to the Finance Committee of the Senate and the Finance Committee
19of the House of Representatives the amount of State delinquent
20taxes collected under this section.

21(e) Rules and regulations.--The Department of Revenue shall
22promulgate rules and regulations necessary to carry out this
23section.

24Section 2. This act shall take effect immediately.

<-25Section 1. The act of August 26, 1971 (P.L.351, No.91),
26known as the State Lottery Law, is amended by adding a section 
27to read:

28Section 316. Lottery winnings intercept.

29(a) Duty of Department of Revenue.--In the case of any 
30person winning a single lottery prize of more than $2,500 in the
 

1State Lottery, the Department of Revenue shall:

2(1) (i) Make reasonable efforts to determine if the
3prizewinner has an outstanding State tax liability prior
4to paying the lottery prize. If the Department of Revenue
5determines that the prizewinner has an outstanding State
6tax liability and the rights to appeal have expired with
7no appeal having been taken or, if an appeal has been
8taken, it has been resolved and is not pending, the
9Department of Revenue shall deduct from the lottery prize
10the amount of outstanding State tax liability. A
11deduction under this subparagraph may only be made after
12the Department of Revenue determines under 23 Pa.C.S. §
134308 (relating to lottery winnings intercept) that either
14the lottery prize is not subject to a deduction for
15delinquent support, or that, after deducting for
16delinquent support, prize amounts remain that can be
17subject to deduction for the amount of the outstanding
18State tax liability.

19(ii) Pay the amount deducted for support as provided
20in 23 Pa.C.S. § 4308 and the amount deducted for any
21outstanding State tax liability in accordance with the
22act of March 4, 1971 (P.L.6, No.2), known as the Tax
23Reform Code of 1971, to satisfy or partially satisfy the
24prizewinner's delinquent support obligations or
25outstanding State tax liability.

26(2) Request the Department of Public Welfare to make a
27reasonable effort to determine if the prizewinner is
28currently a recipient of public assistance benefits in this
29Commonwealth prior to paying the lottery prize. If the
30prizewinner is found to be a recipient of public assistance

1benefits in this Commonwealth, the Department of Public
2Welfare shall determine the prizewinner's eligibility to
3continue to receive public assistance benefits as a result of
4winning the lottery prize.

5(3) (i) in conjunction with the Administrative Office
6of Pennsylvania Courts, make a reasonable effort to
7determine if the prizewinner owes court-ordered
8obligations. If a determination is made that the
9prizewinner owes court-ordered obligations, the
10Administrative Office of Pennsylvania Courts shall
11provide the Department of Revenue with the total amount
12of obligations owed.

13(ii) If it is determined under subparagraph (i) that
14the prizewinner owes court-ordered obligations, deduct
15from the amount of the lottery prize remaining after the
16deductions made under paragraph (1) the amount of the
17obligations owed.

18(iii) Pay the amounts deducted under subparagraph
19(ii) as provided by applicable law to satisfy or
20partially satisfy the prizewinner's court-ordered
21obligations. The Administrative Office of Pennsylvania
22Courts shall furnish the Department of Revenue with the
23information needed to make the payments.

24(4) If applicable, no later than 30 days after the date
25the lottery prize was claimed, notwithstanding the provisions
26of 23 Pa.C.S. § 4308(7):

27(i) award the prizewinner the amount of the lottery
28prize to be paid to the prizewinner after any deductions
29made under paragraphs (1) and (3); and

30(ii) notify the prizewinner that part or all of the

1lottery prize was used to satisfy the prizewinner's
2obligations described in paragraphs (1) and (3). If the
3amount of the lottery prize is not sufficient to fully
4satisfy any of the obligations of the prizewinner, the
5prizewinner shall owe the balance of the obligations as
6provided under applicable law.

7(b) Right to review.--

8(1) A lottery prizewinner whose prize is used to satisfy 
9or partially satisfy an outstanding State tax obligation 
10under subsection (a)(1) may appeal to the Department of 
11Revenue in accordance with 2 Pa.C.S. (relating to 
12administrative law and procedure) only the issue of the 
13legality of the deduction under this section and not the 
14amount of the State tax liability. The appeal shall be filed 
15within 30 days after the prizewinner is notified under 
16subsection (a)(4) by the Department of Revenue that the prize 
17has been reduced or totally withheld to satisfy or partially 
18satisfy the amount of the prizewinner's outstanding State tax 
19liability.

20(2) If it is determined under subsection (a)(2) that the
21prizewinner is no longer eligible for public assistance
22benefits in this Commonwealth, the Department of Public
23Welfare shall notify the prizewinner and the Department of
24Revenue and the prizewinner shall be subject to the act of
25June 13, 1967 (P.L.31, No.21), known as the Public Welfare
26Code.

27(c) Administrative fee.--The Department of Revenue shall
28determine and set a fee which reflects the actual costs it
29incurs to administer this section with respect to a specific
30prizewinner and deduct the calculated amount from the lottery

1prize if the prizewinner is found to have an outstanding State
2tax liability or court-ordered obligations subject to a
3deduction under subsection (a)(1) or (3).

4(d) Report.--The Department of Revenue shall annually report
5to the Finance Committee of the Senate and the Finance Committee
6of the House of Representatives the amount of outstanding State
7tax liability and court-ordered obligations collected under this
8section.

9(e) Rules and regulations.--The Department of Revenue shall 
10promulgate rules and regulations necessary to carry out this 
11section.

12Section 2. This act shall take effect as follows:

13(1) The addition of section 316(a)(3) of the act shall
14take effect in 90 days.

15(2) The remainder of this act shall take effect
16immediately.