Regular Session 2015-2016 House Bill 0251 P.N. 0480

PRIOR PRINTER'S NO. 250

PRINTER'S NO. 480

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

251

Session of

2015

INTRODUCED BY A. HARRIS, COHEN, PASHINSKI, BAKER, BARRAR,

HEFFLEY, MILLARD, STEPHENS, KAUFFMAN, LONGIETTI, PETRI,

MULLERY, D. COSTA, MENTZER, GABLER, DUNBAR, O'NEILL, GROVE,

MURT, OBERLANDER, M. K. KELLER, PICKETT, MAHONEY AND

BENNINGHOFF, JANUARY 28, 2015

AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,

AS AMENDED, FEBRUARY 10, 2015

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,"

in State lottery, 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 316. Lottery winnings intercept.

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

person winning a single lottery prize of more than $2,500 in the

State Lottery, the Department of Revenue shall:

(1) (i) Make reasonable efforts to determine if the

prizewinner has an outstanding State tax liability prior

to paying the lottery prize. If the Department of Revenue

determines that the prizewinner has an outstanding State

tax liability and the rights to appeal have expired with

no appeal having been taken or, if an appeal has been

taken, it has been resolved and is not pending, the

Department of Revenue shall deduct from the lottery prize

the amount of outstanding State tax liability. A

deduction under this subparagraph may only be made after

the Department of Revenue determines under 23 Pa.C.S. §

4308 (relating to lottery winnings intercept) that either

the lottery prize 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 the amount of the outstanding

State tax liability.

(ii) Pay the amount deducted for support as provided

in 23 Pa.C.S. § 4308 and the amount deducted for any

outstanding State tax liability in accordance with the

act of March 4, 1971 (P.L.6, No.2), known as the Tax

Reform Code of 1971, to satisfy or partially satisfy the

prizewinner's delinquent support obligations or

outstanding State tax liability.

(2) Request the Department of Human Services to make a

reasonable effort to determine if the prizewinner is

currently a recipient of public assistance benefits in this

Commonwealth prior to paying the lottery prize. If the

prizewinner is found to be a recipient of public assistance

benefits in this Commonwealth, the Department of Human

Services shall determine the prizewinner's eligibility to

continue to receive public assistance benefits as a result of

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winning the lottery prize.

(3) (i) in conjunction with the Administrative Office

of Pennsylvania Courts, make a reasonable effort to

determine if the prizewinner owes court-ordered

obligations. If a determination is made that the

prizewinner owes court-ordered obligations, the

Administrative Office of Pennsylvania Courts shall

provide the Department of Revenue with the total amount

of obligations owed.

(ii) If it is determined under subparagraph (i) that

the prizewinner owes court-ordered obligations, deduct

from the amount of the lottery prize remaining after the

deductions made under paragraph (1) the amount of the

obligations owed.

(iii) Pay the amounts deducted under subparagraph

(ii) as provided by applicable law to satisfy or

partially satisfy the prizewinner's court-ordered

obligations. The Administrative Office of Pennsylvania

Courts shall furnish the Department of Revenue with the

information needed to make the payments.

(4) If applicable, no later than 30 days after the date

AS SOON AS REASONABLY POSSIBLE AFTER the lottery prize was

claimed, notwithstanding the provisions of 23 Pa.C.S. §

4308(7):

(i) award the prizewinner the amount of the lottery

prize to be paid to the prizewinner after any deductions

made under paragraphs (1) and (3) AND SUBSECTION (C) ; and

(ii) IF APPLICABLE, notify the prizewinner that part

or all of the lottery prize was used to satisfy the

prizewinner's obligations described in paragraphs (1) and

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(3). If the amount of the lottery prize is not sufficient

to fully satisfy any of the obligations of the

prizewinner, the prizewinner shall owe the balance of the

obligations as provided under applicable law.

(b) Right to review.--

(1) A lottery prizewinner whose prize is used to satisfy

or partially satisfy an outstanding State tax obligation

under subsection (a)(1) may appeal to the Department of

Revenue in accordance with 2 Pa.C.S. (relating to

administrative law and procedure) only the issue of the

legality of the deduction under this section and not the

amount of the State tax liability. The appeal shall be filed

within 30 days after the prizewinner is notified under

subsection (a)(4) by the Department of Revenue that the prize

has been reduced or totally withheld to satisfy or partially

satisfy the amount of the prizewinner's outstanding State tax

liability. A LOTTERY WINNER WHOSE PRIZE IS USED TO SATISFY OR

PARTIALLY SATISFY AN OUTSTANDING STATE TAX OBLIGATION UNDER

SUBSECTION (A)(1) MAY FILE A PETITION OF REVIEW WITH THE

DEPARTMENT OF REVENUE WITHIN 90 DAYS AFTER THE MAILING OF THE

NOTICE UNDER SUBSECTION (A)(4). THE ONLY ISSUE THAT MAY BE

CONSIDERED IS WHETHER THE PROPER AMOUNT OF THE STATE TAX

OBLIGATION WAS DEDUCTED OR THERE IS AN UNRESOLVED VALID AND

TIMELY FILED STATE TAX APPEAL OF THE STATE TAX OBLIGATION.

THE PROVISIONS OF ARTICLE XXVII OF THE TAX REFORM CODE OF

1971 SHALL APPLY TO EACH APPEAL UNDER THIS SECTION.

(2) If it is determined under subsection (a)(2) that the

prizewinner is no longer eligible for public assistance

benefits in this Commonwealth, the Department of Human

Services shall notify the prizewinner and the Department of

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Revenue and the prizewinner shall be subject to the act of

June 13, 1967 (P.L.31, No.21), known as the Public Welfare

Code.

determine and set a fee which reflects the actual costs it

incurs to administer this section with respect to a specific

prizewinner and deduct the calculated amount from the lottery

prize if the prizewinner is found to have an outstanding State

tax liability or court-ordered obligations subject to a

deduction under subsection (a)(1) or (3).

(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 outstanding State

tax liability and court-ordered obligations collected under this

section.

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

MAY promulgate rules and regulations necessary to carry out this

section.

Section 2. This act shall take effect as follows:

(1) The addition of section 316(a)(3) of the act shall

take effect in 90 180 days.

(2) The remainder of this act shall take effect

immediately.

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