1Amend Bill, page 1, lines 10 through 19; page 2, lines 1
2through 30; page 3, lines 1 through 28, by striking out all of
3said lines on said pages and inserting

4Section 1. The act of August 26, 1971 (P.L.351, No.91),
5known as the State Lottery Law, is amended by adding a section 
6to read:

7Section 316. Lottery winnings intercept.

8(a) Duty of Department of Revenue.--In the case of any 
9person winning a single lottery prize of more than $2,500 in the 
10State Lottery, the Department of Revenue shall:

11(1) (i) Make reasonable efforts to determine if the
12prizewinner has an outstanding State tax liability prior
13to paying the lottery prize. If the Department of Revenue
14determines that the prizewinner has an outstanding State
15tax liability and the rights to appeal have expired with
16no appeal having been taken or, if an appeal has been
17taken, it has been resolved and is not pending, the
18Department of Revenue shall deduct from the lottery prize
19the amount of outstanding State tax liability. A
20deduction under this subparagraph may only be made after
21the Department of Revenue determines under 23 Pa.C.S. §
224308 (relating to lottery winnings intercept) that either
23the lottery prize is not subject to a deduction for
24delinquent support, or that, after deducting for
25delinquent support, prize amounts remain that can be
26subject to deduction for the amount of the outstanding
27State tax liability.

28(ii) Pay the amount deducted for support as provided
29in 23 Pa.C.S. § 4308 and the amount deducted for any
30outstanding State tax liability in accordance with the
31act of March 4, 1971 (P.L.6, No.2), known as the Tax
32Reform Code of 1971, to satisfy or partially satisfy the
33prizewinner's delinquent support obligations or
34outstanding State tax liability.

35(2) Request the Department of Public Welfare to make a
36reasonable effort to determine if the prizewinner is
37currently a recipient of public assistance benefits in this

1Commonwealth prior to paying the lottery prize. If the
2prizewinner is found to be a recipient of public assistance
3benefits in this Commonwealth, the Department of Public
4Welfare shall determine the prizewinner's eligibility to
5continue to receive public assistance benefits as a result of
6winning the lottery prize.

7(3) (i) in conjunction with the Administrative Office
8of Pennsylvania Courts, make a reasonable effort to
9determine if the prizewinner owes court-ordered
10obligations. If a determination is made that the
11prizewinner owes court-ordered obligations, the
12Administrative Office of Pennsylvania Courts shall
13provide the Department of Revenue with the total amount
14of obligations owed.

15(ii) If it is determined under subparagraph (i) that
16the prizewinner owes court-ordered obligations, deduct
17from the amount of the lottery prize remaining after the
18deductions made under paragraph (1) the amount of the
19obligations owed.

20(iii) Pay the amounts deducted under subparagraph
21(ii) as provided by applicable law to satisfy or
22partially satisfy the prizewinner's court-ordered
23obligations. The Administrative Office of Pennsylvania
24Courts shall furnish the Department of Revenue with the
25information needed to make the payments.

26(4) If applicable, no later than 30 days after the date
27the lottery prize was claimed, notwithstanding the provisions
28of 23 Pa.C.S. § 4308(7):

29(i) award the prizewinner the amount of the lottery
30prize to be paid to the prizewinner after any deductions
31made under paragraphs (1) and (3); and

32(ii) notify the prizewinner that part or all of the
33lottery prize was used to satisfy the prizewinner's
34obligations described in paragraphs (1) and (3). If the
35amount of the lottery prize is not sufficient to fully
36satisfy any of the obligations of the prizewinner, the
37prizewinner shall owe the balance of the obligations as
38provided under applicable law.

39(b) Right to review.--

40(1) A lottery prizewinner whose prize is used to satisfy 
41or partially satisfy an outstanding State tax obligation 
42under subsection (a)(1) may appeal to the Department of 
43Revenue in accordance with 2 Pa.C.S. (relating to 
44administrative law and procedure) only the issue of the 
45legality of the deduction under this section and not the 
46amount of the State tax liability. The appeal shall be filed 
47within 30 days after the prizewinner is notified under 
48subsection (a)(4) by the Department of Revenue that the prize 
49has been reduced or totally withheld to satisfy or partially 
50satisfy the amount of the prizewinner's outstanding State tax 
51liability.

1(2) If it is determined under subsection (a)(2) that the
2prizewinner is no longer eligible for public assistance
3benefits in this Commonwealth, the Department of Public
4Welfare shall notify the prizewinner and the Department of
5Revenue and the prizewinner shall be subject to the act of
6June 13, 1967 (P.L.31, No.21), known as the Public Welfare
7Code.

8(c) Administrative fee.--The Department of Revenue shall
9determine and set a fee which reflects the actual costs it
10incurs to administer this section with respect to a specific
11prizewinner and deduct the calculated amount from the lottery
12prize if the prizewinner is found to have an outstanding State
13tax liability or court-ordered obligations subject to a
14deduction under subsection (a)(1) or (3).

15(d) Report.--The Department of Revenue shall annually report
16to the Finance Committee of the Senate and the Finance Committee
17of the House of Representatives the amount of outstanding State
18tax liability and court-ordered obligations collected under this
19section.

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

23Section 2. This act shall take effect as follows:

24(1) The addition of section 316(a)(3) of the act shall
25take effect in 90 days.

26(2) The remainder of this act shall take effect
27immediately.