Skip to main content
Find a Lawyer

U.S. Federal and State Cases, Codes, and Articles

Select a tab to search United States Cases, Codes, or Articles

Search for cases

Indicates required field

Search by keyword or citation

Indicates required field

Search blogs, article pages, and cases and codes

Indicates required field

Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 3761-306. Assignability of prizes drawn

Current as of January 01, 2022 | Updated by FindLaw Staff

(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).

1 72 P.S. § 3761-307.
Back to chapter list
Previous part of code Next part of code
Back to chapter list

Cite this article: FindLaw.com - Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 3761-306. Assignability of prizes drawn - last updated January 01, 2022 | https://codes.findlaw.com/pa/title-72-ps-taxation-and-fiscal-affairs/pa-st-sect-72-3761-306/

Read this complete Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 3761-306. Assignability of prizes drawn on Westlaw

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.

Was this helpful?

Response sent, thank you

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About the Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to find an attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

    More Options
    Copied to clipboard