Rhode Island General Laws
Chapter 42-61 - State Lottery
Section 42-61-7.2. - Payment of prizes in excess of six hundred dollars ($600) — Setoff for unpaid taxes.

§ 42-61-7.2. Payment of prizes in excess of six hundred dollars ($600) — Setoff for unpaid taxes.
Notwithstanding the provisions of § 42-61-7 and § 42-61-7.1 relating to assignment of prizes and setoff for child support debts and benefit overpayments, the following setoff provisions shall apply to the payment of any prizes or winning ticket in excess of six hundred dollars ($600).
(1) With respect to a person entitled to receive the prize or winning ticket who has unpaid taxes owed to the tax administrator in excess of six hundred dollars ($600), as evidenced by the tax administrator pursuant to subsection (3) of this section, the lottery director:
(i) Shall setoff against the amount due to that person after state and federal tax withholding an amount up to the balance of the unpaid taxes owed as evidenced by the tax administrator pursuant to subsection (3) of this section, and the director shall make payment of this amount directly to the tax administrator; and
(ii) Shall pay to that person the remaining balance of the prize or winning ticket amount, if any, after reduction of the amount setoff above for taxes owed. If in any instance, the lottery director has received notice from more than one claimant agency, the claim for child support arrearage(s) owed to the department of human services shall receive first (1st) priority, the claim for benefit overpayments and interest owed to the department of labor and training the second (2nd) priority, and the claim for taxes owed to the tax administrator the third (3rd) priority.
(2) The director shall be discharged of all further liability upon payment of a prize or winning ticket pursuant to this section.
(3) The tax administrator shall periodically within each year furnish the director with a list or compilation of names of individuals, together with any other identifying information and in a form that the director shall require, who as of the date of the list or compilation, have unpaid taxes in excess of six hundred dollars ($600).
(4) Any party aggrieved by any action taken under this section may, within thirty (30) days of the withholding of the payment by the lottery director, seek a review with the tax administrator, who may, in his or her discretion, issue a temporary order prohibiting the disbursement of funds under this section, pending final decision.
History of Section.P.L. 2011, ch. 151, art. 19, § 14.