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§ 3761-306. Assignability of prizes drawn

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 P.S. Taxation and Fiscal Affairs

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 72 P.S. Taxation and Fiscal Affairs
Chapter 3. State Fiscal Affairs in General (Refs & Annos)
State Lottery Law (Refs & Annos)
Chapter 3. State Lottery (Refs & Annos)
72 P.S. § 3761-306
Formerly cited as PA ST 72 P.S. § 3761-8
§ 3761-306. Assignability of prizes drawn
Currentness
(a) Assignability.--The right of any person to a prize drawn shall be assignable under the following limited circumstances:
(1) Payment of any prize drawn may be paid to the estate of a deceased prize winner.
(2) Payment of any prize drawn may be made to any person pursuant to an appropriate judicial order.
(3) Payment of any prize drawn may be made to any person pursuant to a voluntary assignment of the right to receive future prize payments, in whole or in part, if the assignment is made to a person or entity designated pursuant to an appropriate judicial order of the court of common pleas located in either the judicial district where the assignor resides or where the division's headquarters are located. Under this paragraph, the court shall issue an order approving the assignment and directing the secretary to pay the assignee all future prize payments, in whole or in part, if:
(i) the assignment is in writing, executed by the assignor and subject to the laws of this Commonwealth;
(ii) the assignor provides a sworn affidavit to the court attesting that the assignor is of sound mind, is not acting under duress, has been advised regarding the assignment by his or her own independent legal counsel and understands and agrees that, with regard to the assigned payments, the Commonwealth and the secretary shall have no further liability or responsibility to make said payments to the assignor; and
(iii) the proposed assignment does not include or cover payments or portions of payments alleged to be subject to offset under judicial order, unless appropriate provision is made in the order to satisfy the obligations giving rise to the claim for offset, or to offset under any other statute.
(b) Discharge of secretary.--The secretary shall be discharged of all further liability upon payment of a prize pursuant to this section.
(c) Enforcement.--Soliciting or offering rights to lottery prizewinnings, either by assignment or through pledge as collateral for a loan, shall not be deemed selling or offering for sale lottery tickets or shares under this act. Selling or offering for sale assigned or pledged lottery prizewinnings shall not be deemed selling or offering for sale an interest under section 307.1
(d) Fees.--The secretary is authorized to establish a reasonable fee to defray any administrative expenses associated with assignments made pursuant to this section, including the cost to the Commonwealth of any processing fee that may be imposed by a private annuity provider. The fee amount shall reflect the direct and indirect costs associated with processing the assignments.
(e) Discharge of Commonwealth.--Upon a voluntary assignment pursuant to appropriate judicial order under subsection (a)(3) of payments due to a prizewinner under a private annuity policy that has been purchased by the lottery for the benefit of a prizewinner, the Commonwealth and the secretary shall be discharged from any and all liability for the payments or portions thereof assigned, and, as to the payments or portions thereof assigned, the assignee shall have recourse only against the private annuity provider and its guarantors and shall have no further recourse against the Commonwealth.
(f) Assignment limitation.--Notwithstanding any other provision of this section, no prizewinner shall have the right to assign prize payments upon:
(1) The issuance by the United States Internal Revenue Service (IRS) of a technical rule letter, revenue ruling or other public ruling of the IRS in which the IRS determines that, based upon the right of assignment provided in this act, a Pennsylvania lottery prizewinner who does not assign any prize payments pursuant to subsection (a)(3) would be subject to an immediate income tax liability for the value of the entire prize rather than annual income tax liability for each installment when paid.
(2) The issuance by a court of competent jurisdiction of a published decision holding that, based upon the right of assignment provided in this act, a Pennsylvania lottery prizewinner who does not assign any prize payments pursuant to subsection (a)(3) would be subject to an immediate income tax liability for the value of the entire prize rather than annual income tax liability for each installment when paid.
(g) Filing of letter decision.--Upon receipt of a letter or ruling from the IRS or a published decision of a court of competent jurisdiction, as specified in subsection (f), the executive director shall immediately file a copy of that letter, ruling or published decision with the Secretary of State. Immediately upon the filing by the director of a letter, ruling or published decision with the Secretary of State, a prizewinner shall be ineligible to assign a prize pursuant to subsection (a)(3).

Credits

1971, Aug. 26, P.L. 351, No. 91, § 8, imd. effective. Renumbered as § 306 and amended 1996, Nov. 21, P.L. 741, No. 134, § 1, effective in 60 days.

Footnotes

1
72 P.S. § 3761-307.
72 P.S. § 3761-306, PA ST 72 P.S. § 3761-306
Current through Act 13 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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