As Passed by the Senate

126th General Assembly Regular Session 2005-2006

Am. Sub. H. B. No. 122

Representatives Wagoner, McGregor, Martin, Wagner, T. Patton, Hoops, Uecker, Seitz, Combs, Gibbs, Flowers, Collier, D. Evans, Calvert, Reidelbach, Setzer, Strahorn, Garrison, Latta, C. Evans, Kearns, Blasdel, Law, Gilb, Webster, Ujvagi, Harwood, Daniels, Carmichael, Walcher, Hartnett, D. Stewart, Book, Allen, Barrett, Brinkman, Brown, Cassell, Chandler, Coley, DeBose, Distel, Dolan, Domenick, Faber, Hughes, Key, Miller, Sayre, Schaffer, Schneider, J. Stewart, Yuko 

Senators Mumper, Niehaus, Zurz, Mallory, Clancy 

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A BILL

To amend sections 3770.07, 3770.071, 3770.072, and

1

5747.062 and to enact sections 3123.89 and

2

3770.074 of the Revised Code to prohibit the

3

claiming and payment of a lottery prize award with

4

a value in excess of $599 until the beneficial

5

owner's name, address, and Social Security number

6

are disclosed to the State Lottery Commission, to

7

make changes in the procedure for the deduction of

8

support from lottery prize awards, to change the

9

income tax withholding percentage for certain

10

lottery prize award payments, to modify the basis

11

upon which the withholding computation is made, to

12

require that final, nonappealable unpaid judgments

13

be deducted from certain unpaid lottery prize

14

award payments pursuant to a specified procedure,

15

and to specify the method of payment of lottery

16

prize award installments.

17

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 3770.07, 3770.071, 3770.072, and	18
5747.062 be amended and sections 3123.89 and 3770.074 of the	19
Revised Code be enacted to read as follows:	20

Sec. 3123.89. (A) Subject to section 3770.071 of the Revised	21
Code, a child support enforcement agency that determines that an	22
obligor who is the recipient of a lottery prize award is subject	23
to a final and enforceable determination of default made under	24
sections 3123.01 to 3123.07 of the Revised Code shall issue an	25
intercept directive to the director of the state lottery	26
commission. A copy of this intercept directive shall be sent to	27
the obligor.	28

(B) The intercept directive shall require the director or the	29
director's designee to transmit an amount or amounts from the	30
proceeds of the specified lottery prize award to the office of	31
child support in the department of job and family services. The	32
intercept directive also shall contain all of the following	33
information:	34

(1) The name, address, and social security number or taxpayer	35
identification number of the obligor;	36

(2) A statement that the obligor has been determined to be in	37
default under a support order;	38

(3) The amount of the arrearage owed by the obligor as	39
determined by the agency.	40

(C) After receipt of an intercept directive and in accordance	41
with section 3770.071 of the Revised Code, the director or the	42
director's designee shall deduct the amount or amounts specified	43
from the proceeds of the lottery prize award referred to in the	44
directive and transmit the amounts to the office of child support.	45

Sec. 3770.07.  (A)(1) Except as provided in division (A)(2)	46
of this section, lottery prize awards shall be claimed by the	47
holder of the winning lottery ticket, or by the executor or	48
administrator, or the trustee of a trust, of the estate of a	49
deceased holder of a winning lottery ticket, in a manner to be	50
determined by the state lottery commission, within one hundred	51
eighty days after the date on which the prize award was announced	52
if the lottery game is an on-lineonline game, and within one	53
hundred eighty days after the close of the game if the lottery	54
game is an instant game.	55

No lottery prize award with a value that exceeds five hundred	56
ninety-nine dollars shall be claimed by or paid to any person, as	57
defined in section 1.59 of the Revised Code or as defined by rule	58
or order of the state lottery commission, until the name, address,	59
and social security number of each beneficial owner of the prize	60
award are disclosed to the commission. Except when a beneficial	61
owner otherwise consents in writing, the name, address, and social	62
security number of that beneficial owner in the commission's	63
records as a result of that disclosure are confidential and shall	64
not be subject to inspection or copying under section 149.43 of	65
the Revised Code as a public record.	66

Except as otherwise provided in division (A)(1) of this	67
section or as otherwise provided by law, the name and address of	68
any individual claiming a lottery prize award are subject to	69
inspection or copying under section 149.43 of the Revised Code as	70
a public record.	71

(2) An eligible person serving on active military duty in any	72
branch of the United States armed forces during a war or national	73
emergency declared in accordance with federal law may submit a	74
delayed claim for a lottery prize award. The eligible person shall	75
do so by notifying the state lottery commission about the claim	76
not later than the five hundred fortieth day after the date on	77
which the prize award was announced if the lottery game is an	78
on-lineonline game or after the date on which the lottery game	79
closed if the lottery game is an instant game.	80

(3) If no valid claim to a lottery prize award is made within	81
the prescribed period, the prize money, the cost of goods and	82
services awarded as prizes, or, if goods or services awarded as	83
prizes are resold by the state lottery commission, the proceeds	84
from their sale shall be returned to the state lottery fund and	85
distributed in accordance with section 3770.06 of the Revised	86
Code.	87

(4) The state lottery commission may share with other	88
governmental agencies the name, address, and social security	89
number of a beneficial owner disclosed to the commission under	90
division (A)(1) of this section, as authorized under sections	91
3770.071 and 3770.073 of the Revised Code. The shared information	92
as disclosed pursuant to those sections remains confidential and	93
shall not be subject to inspection or copying under section 149.43	94
of the Revised Code as a public record unless the beneficial owner	95
otherwise provides written, notarized consent.	96

(5) As used in this division:

97

(a) "Eligible person" means a person who is entitled to a	98
lottery prize award and who falls into either of the following	99
categories:	100

(i) While on active military duty in this state, the person,	101
as the result of a war or national emergency declared in	102
accordance with federal law, is transferred out of this state	103
before the one hundred eightieth day after the date on which the	104
winner of the lottery prize award is selected.	105

(ii) While serving in the reserve forces in this state, the	106
person, as the result of a war or national emergency declared in	107
accordance with federal law, is placed on active military duty and	108
is transferred out of this state before the expiration of the one	109
hundred eightieth day after the date on which the prize drawing	110
occurs for an on-lineonline game or before the expiration of the	111
one hundred eightieth day following the close of an instant game	112
as determined by the commission.	113

(b) "Active military duty" means that a person is covered by	114
the "Servicemembers Civil Relief Act," 117 Stat. 2835 (2003), 50	115
U.S.C. 501 et seq., as amended, or the "Uniformed Services	116
Employment and Reemployment Rights Act of 1994," 108 Stat. 3149,	117
38 U.S.C. 4301 et seq., as amended.	118

(c) "Each beneficial owner" means the ultimate recipient or,	119
if there is more than one, each ultimate recipient of a lottery	120
prize award.	121

(B) If a prize winner, as defined in section 3770.10 of the	122
Revised Code, is under eighteen years of age, or is under some	123
other legal disability, and the prize money or the cost of goods	124
or services awarded as a prize exceeds one thousand dollars, the	125
director of the state lottery commission shall order that payment	126
be made to the order of the legal guardian of that prize winner.	127
If the amount of the prize money or the cost of goods or services	128
awarded as a prize is one thousand dollars or less, the director	129
may order that payment be made to the order of the adult member,	130
if any, of that prize winner's family legally responsible for the	131
care of that prize winner.	132

(C) No right of any prize winner, as defined in section	133
3770.10 of the Revised Code, to a prize award shall be the subject	134
of a security interest or used as collateral.	135

(D)(1) No right of any prize winner, as defined in section	136
3770.10 of the Revised Code, to a prize award shall be assignable,	137
or subject to garnishment, attachment, execution, withholding, or	138
deduction, except as follows: as provided in sections 3119.80,	139
3119.81, 3121.02, 3121.03, and 3123.06 of the Revised Code; when	140
the payment is to be made to the executor or administrator, or the	141
trustee of a trust, of the estate of a winning ticket holder; when	142
the award of a prize is disputed, any person may be awarded a	143
prize award to which another has claimed title, pursuant to the	144
order of a court of competent jurisdiction; when a person is	145
awarded a prize award to which another has claimed title, pursuant	146
to the order of a federal bankruptcy court under Title 11 of the	147
United States Code; when the director is to make a payment	148
pursuant to section 3770.071 or, 3770.073, or 3770.074 of the	149
Revised Code; or as provided in sections 3770.10 to 3770.14 of the	150
Revised Code.	151

(2) The state lottery commission shall adopt rules pursuant	152
to section 3770.03 of the Revised Code concerning the payment of	153
prize awards upon the death of a prize winner, as defined in	154
section 3770.10 of the Revised Code. Upon the death of a prize	155
winner, the remainder of the prize winner's prize award, to the	156
extent it is not subject to a transfer agreement under sections	157
3770.10 to 3770.14 of the Revised Code, may be paid to the	158
executor, administrator, or trustee in the form of a discounted	159
lump sum cash settlement.	160

(E) No lottery prize award shall be awarded to or for any	161
officer or employee of the state lottery commission, any officer	162
or employee of the auditor of state actively coordinating and	163
certifying commission drawings, or any blood relative or spouse of	164
such an officer or employee of the commission or auditor of state	165
living as a member of the officer's or employee's household, nor	166
shall any such officer, employee, blood relative, or spouse	167
attempt to claim a lottery prize award.	168

(F) The director may prohibit vendors to the state lottery	169
commission and their employees from being awarded a lottery prize	170
award.	171

(G) Upon the payment of prize awards pursuant to this	172
section, the director and the state lottery commission are	173
discharged from all further liability for their payment.	174
Installment payments of lottery prize awards shall be paid by	175
official check or warrant, and they shall be sent by mail delivery	176
to the prize winner's address within the United States or by	177
electronic funds transfer to an established bank account located	178
within the United States, or the prize winner may pick them up at	179
an office of the commission.	180

Sec. 3770.071.  (A)(1) If the amount of the prize money or	181
the cost of goods or services awarded as a lottery prize award is	182
six hundred dollars or more, the director of the state lottery	183
commission, or the director's designee, shall require the person	184
entitled to the prize award to affirm in writing, under oath,	185
whether or not the person is in default under a support order. The	186
director or the director's designee also may take any additional	187
appropriate steps to determine if the person entitled to the prize	188
award is in default under a support order. If the person entitled	189
to the prize award affirms that the person is in default under a	190
support order, or if the director or the director's designee	191
determines that the person is in default under a support order,	192
the director or the director's designee shall temporarily withhold	193
payment of the prize award and informnotify the courtchild	194
support enforcement agency that issuedadministers the support	195
order that the person is entitled to a prize award, of the amount	196
of the prize award, and, if the prize award is to be paid in	197
annual installments, of the number of installments.	198

After(2) Upon receipt of the notice from the director or the	199
director's designee, the court shall give the person notice of the	200
director's notice, schedule a hearing to determine if the person	201
is in default and the amount of the default, and give the person	202
notice of the date, time, and location of the hearingchild	203
support enforcement agency shall conduct an investigation to	204
determine whether the person entitled to the lottery prize award	205
is subject to a final and enforceable determination of default	206
made under sections 3123.01 to 3123.07 of the Revised Code. If the	207
court at the hearingagency determines that the person is in	208
defaultso subject, it shall issue an orderintercept directive as	209
described in section 3123.89 of the Revised Code to the director	210
at lottery commission headquarters requiring the director or the	211
director's designee to deduct from any unpaid prize award or any	212
annual installment payment of thean unpaid prize award, a	213
specified amount for child support or spousal support in	214
satisfaction of the support order under which the person is in	215
default. To the extent possible, the amount specified to be	216
deducted under the order issued under this sectionintercept	217
directive shall satisfy the amount ordered for support or spousal	218
support in the support order under which the person is in default.	219
Within	220

A child support enforcement agency shall issue an intercept	221
directive within thirty days from the date the director or the	222
director's designee notifies the agency under division (A)(1) of	223
this section. Within thirty days after the date on which the court	224
agency issues the order under this section to the director	225
intercept directive, the director or the director's designee shall	226
pay the amount specified in that orderthe intercept directive to	227
the office of child support in the department of job and family	228
services. IfBut, if the prize award is to be paid in annual	229
installments, the director or the director's designee, on the date	230
the next installment payment is due, shall paydeduct the amount	231
specified in the court order issued under this sectionintercept	232
directive from that installment and, if necessary, any subsequent	233
annual installments, at the time suchthose installments become	234
due and owing to the prize winner, and pay the amount to the	235
office of child support.	236

(B) As used in this section:

237

(1) "Support order" has the same meaning as in section	238
3119.01 of the Revised Code.	239

(2) "Default" has the same meaning as in section 3121.01 of	240
the Revised Code.	241

(C) No person shall knowingly make a false affirmation or	242
oath required by division (A) of this section.	243

Sec. 3770.072. (A) As used in this section, "prize winner,"	244
"transferee," and "transferor" have the same meanings as in	245
section 3770.10 of the Revised Code.	246

(B) The state lottery commission shall deduct amounts from	247
lottery prize awards and file returns in accordance with section	248
5747.062 of the Revised Code and any rules adopted by the tax	249
commissioner pursuant to that section. This division also applies	250
to lottery prize award payments the commission remits to	251
transferees.	252

(C)(1)(a) Each transferee shall deduct and withhold from each	253
gross amount payable to each prize winner three and one-halfsix	254
per cent of the gross amount payable prior to making any other	255
reduction required by this chapter.	256

(b) Subject to division (C)(1)(c) of this section, each	257
transferee, including any transferee that is a related member, as	258
defined in section 5733.042 of the Revised Code, to the	259
transferor, shall deduct and withhold from each amount payable to	260
a transferor that is not a prize winner six per cent of the	261
portion of the payment representing gain or income the transferor	262
will recognize in connection with the payment.	263

(c) For purposes of division (C)(1)(b) of this section, the	264
portion of any payment representing gain or income recognized by	265
the transferor shall be computed in accordance with the Internal	266
Revenue Code. The transferor shall prepare a written statement	267
setting forth that amount and sign the statement under penalty of	268
perjury. Within five days before the date on which the payment is	269
to be made, the transferor shall deliver the written statement to	270
the transferee and deliver a copy of the written statement to the	271
tax commissioner. If the transferee does not receive the written	272
statement by the time the payment is made, the transferee shall	273
withhold six per cent of the entire amount of the payment. If the	274
tax commissioner notifies the transferee that the transferor has	275
erroneously computed the amount of gain or income recognized, the	276
transferee shall withhold six per cent of the entire amount of	277
each payment to be made after the transferee receives the notice.	278

(d) The tax commissioner may impose a penalty of up to one	279
thousand dollars for any person failing to timely deliver to the	280
tax commissioner the copy of the written statement as required by	281
division (C)(1)(c) of this section. Proceeds from the imposition	282
of the penalty shall be considered as revenue arising from the tax	283
imposed under section 5733.06 or 5747.02 of the Revised Code, as	284
applicable.	285

(2) With respect to amounts deducted and withheld pursuant to	286
division (C)(1) of this section, each transferee shall comply with	287
divisions (A)(2) to (4) of section 5747.062 of the Revised Code.	288

(3) An employee of a corporation, limited liability company,	289
or business trust having control or supervision of or charged with	290
the responsibility of filing the report and making the payment	291
required by division (C) of this section and section 5747.062 of	292
the Revised Code, or an officer, member, manager, or trustee of a	293
corporation, limited liability company, or business trust who is	294
responsible for the execution of the corporation's, limited	295
liability company's, or business trust's fiscal responsibilities,	296
shall be personally liable for failure to file the report or pay	297
the amount due as required by division (C) of this section and	298
section 5747.062 of the Revised Code. The dissolution,	299
termination, or bankruptcy of a corporation, limited liability	300
company, or business trust does not discharge a responsible	301
officer's, member's, manager's, employee's, or trustee's liability	302
for a failure of the corporation, limited liability company, or	303
business trust to file returns or pay the amount due.	304

(4)(a) The tax commissioner may make an assessment against	305
any person listed in division (C)(1) or (3) of this section for	306
any deficiency for any period. Section 5747.13 of the Revised Code	307
shall apply with respect to issuing assessments, filing petitions	308
for reassessments, conducting hearings, issuing final	309
determinations, making the assessment final, and filing the entry	310
that makes the assessment final. Section 5717.02 of the Revised	311
Code shall apply to appeals of the commissioner's final decision	312
in connection with assessments issued pursuant to division (C)(4)	313
of this section.	314

(b) An assessment issued against any person listed in	315
division (C)(1) or (3) of this section shall not be considered an	316
election of remedies or a bar to an assessment against any other	317
person for the failure to comply with division (C)(1) of this	318
section. No assessment shall be issued against any person who is	319
so listed if the amount required to be withheld has been paid by	320
another.	321

(c) The assessment shall include interest at the rate per	322
annum prescribed by section 5703.47 of the Revised Code on	323
liability from the time the payment is due until the date of	324
assessment. Interest shall continue to accrue from the date of	325
assessment until the date the assessment is paid in full. Any	326
interest accruing subsequent to the date of the issuance of the	327
assessment shall be considered to be an additional deficiency for	328
which the tax commissioner may issue subsequent assessments. The	329
initial assessment and any subsequent assessments may include a	330
penalty in an amount not to exceed twice the applicable interest	331
charged under this division.	332

Sec. 3770.074.  (A) Except as otherwise provided in this	333
section, if the state lottery commission has not yet paid in full	334
a lottery prize award whose remaining unpaid amount is one hundred	335
thousand dollars or more, if the winner of the lottery prize award	336
is a judgment debtor, if a certified copy of the entry of a final,	337
nonappealable judgment of a court of record of this state, another	338
state, or the United States pertaining to that judgment debtor is	339
transmitted to the commission by the clerk of that court upon the	340
request of the judgment creditor, and if that judgment has not yet	341
been paid in full, the director of the commission or the	342
director's designee, subject to the procedures specified in	343
division (B) of this section and to the priorities specified in	344
division (G) of this section, shall deduct and pay to the judgment	345
creditor from the remaining amount of the unpaid prize award, or	346
from any annual installment or installments of the remaining	347
amount of unpaid prize award, either of the following:	348

(1) An amount sufficient to pay in full the amount of the	349
unpaid judgment, if the remaining amount of the unpaid prize award	350
equals or exceeds the amount of the judgment;	351

(2) The remaining amount of the unpaid prize award, if that	352
remaining amount is less than the amount of the unpaid judgment.	353

(B) (1) The commission shall receive certified copies of	354
entries of final, nonappealable judgments for payments from a	355
lottery prize award as described in division (A) of this section	356
for a period of three weeks after the commission receives a claim	357
for that lottery prize award. If the commission receives a	358
certified copy of an entry of such a judgment during that period,	359
the commission shall continue to receive certified copies of	360
entries of final, nonappealable judgments for an additional week.	361
At the end of this four-week period, if more than one certified	362
copy of an entry of a final, nonappealable judgment is received	363
and the amount of the lottery prize award equals or exceeds the	364
total amount of the judgments, the director or the director's	365
designee shall pay the amount of the judgments in full and pay the	366
remaining amount of the lottery prize award to the judgment	367
debtor. But, at that time, if the amount of the lottery prize	368
award is less than the total amount of the judgments for which	369
certified copies of entries were received, the commission shall	370
file a civil action in the court of common pleas of the county in	371
which the prize winner resides or, if the prize winner is not a	372
resident of this state, in the court of common pleas of Cuyahoga	373
county, for a declaratory judgment on the distribution of the	374
amount of the lottery prize award to each of the applicable	375
judgment creditors.	376

(2) If a lottery prize award winner elects to receive the	377
payment of the prize award in annual installments, the commission	378
shall receive certified copies of entries of final, nonappealable	379
judgments for payments from an annual installment of a lottery	380
prize award as described in division (A) of this section for a	381
period of three weeks before the date of payment of that annual	382
installment. If the commission receives a certified copy of an	383
entry of a final, nonappealable judgment during that period, the	384
commission shall pay the judgment from that annual installment in	385
the manner described in division (B)(1) of this section.	386

(3) The commission shall pay judgments under divisions (B)(1)	387
and (2) of this section in the following order of priority:	388

(a) Judgments entered before the date that the claim for a	389
lottery prize award is received if certified copies of the entries	390
are received within the four-week period after the date that the	391
claim for the prize award is received;	392

(b) Judgments entered before the date that the claim for a	393
lottery prize award is received if certified copies of the entries	394
are received after the end of the four-week period after the date	395
the claim for the prize award is received;	396

(c) Judgments entered after the date that the claim for a	397
lottery prize award is received.	398

(C) The state lottery commission may establish and charge a	399
judgment creditor described in division (A) of this section a fee	400
to reimburse the commission for the costs it incurs for deducting	401
amounts and paying them to the judgment creditor.	402

(D)(1) If a judgment debtor described in division (A) of this	403
section is a member of a trust, the commission shall notify each	404
of the members of the trust of the deductions from the lottery	405
prize award made under that division. The judgment creditor shall	406
be responsible for providing the commission with information as to	407
the existence of such a trust and as to its members other than the	408
judgment debtor.	409

(2) This section does not apply to or affect the payment of a	410
lottery prize award to a blind trust, as defined by rule of the	411
commission.	412

(E) Division (A) and (B) of this section do not require the	413
commission, before paying a lottery prize award, to inquire of	414
lottery prize award winners regarding any unpaid judgments that	415
have been or may be entered against them or to conduct an	416
independent inquiry as to the existence or nonexistence of such	417
judgments, nor do they prevent the commission from making annual	418
installment payments of a lottery prize award.	419

(F) The commission may adopt and amend rules pursuant to	420
Chapter 119. of the Revised Code as necessary to implement this	421
section and to comply with any applicable requirements of federal	422
law.	423

(G) The deductions and payments from lottery prize awards the	424
commission is required to make under sections 3770.071, 3770.072,	425
and 3770.073 of the Revised Code take priority over deductions and	426
payments it is required to make under this section.	427

(H) Upon making payments from a lottery prize award as	428
required by divisions (A) and (B) of this section, the director	429
and the commission are discharged from all further liability for	430
those payments, whether to the judgment creditor or to the lottery	431
prize award winner.	432

Sec. 5747.062. As used in this section, "transferee" has the	433
same meaning as in section 3770.10 of the Revised Code, and	434
"recipient" includes a transferee.	435

(A)(1) The state lottery commission shall deduct and withhold	436
from each lottery prize award payment that exceeds five thousand	437
dollars an amount equal to three and one-halfsix per cent of the	438
payment, prior to making any other reduction required by Chapter	439
3770. of the Revised Code.	440

(2) On or before the tenth banking day of each month, the	441
state lottery commission, and each transferee required to deduct	442
and withhold amounts pursuant to section 3770.072 of the Revised	443
Code, shall file a return and remit to the tax commissioner all	444
amounts deducted and withheld pursuant to this section during the	445
preceding month.	446

(3) On or before the thirty-first day of January of each	447
year, the state lottery commission, and each transferee required	448
to deduct and withhold amounts pursuant to section 3770.072 of the	449
Revised Code, shall file with the commissioner an annual return,	450
in the form prescribed by the tax commissioner, indicating the	451
total amount deducted and withheld pursuant to this section or	452
section 3770.072 of the Revised Code during the preceding calendar	453
year. At the time of filing that return, the state lottery	454
commission or transferee shall remit any amount deducted and	455
withheld during the preceding calendar year that was not	456
previously remitted.	457

(4) The state lottery commission, and each transferee	458
required to deduct and withhold amounts pursuant to section	459
3770.072 of the Revised Code, shall issue to each person with	460
respect to whom tax has been deducted and withheld by the	461
commission or transferee pursuant to this section or section	462
3770.072 of the Revised Code during the preceding calendar year,	463
an information return in the form prescribed by the commissioner.	464

(B)(1) Division (B)(1) of this section does not apply to	465
persons classified for federal income tax purposes as associations	466
taxable as corporations.	467

Amounts withheld pursuant to this section or section 3770.072	468
of the Revised Code shall be treated as a credit against the tax	469
imposed pursuant to section 5747.02 of the Revised Code upon the	470
lottery prize award recipient, upon a beneficiary of such a	471
recipient, or upon any investor in such a recipient if the	472
recipient is a pass-through entity or disregarded entity, and	473
shall be treated as paid by the recipient, beneficiary, or	474
investor on the date on which those amounts are deducted and	475
withheld. The credit is a refundable credit and shall be claimed	476
in the order required under section 5747.98 of the Revised Code.	477
The credit is available to the recipient, beneficiary, or investor	478
even if the commission or transferee does not remit to the tax	479
commissioner the amount withheld.	480

(2) Division (B)(2) of this section applies only to persons	481
classified for federal income tax purposes as associations taxable	482
as corporations.	483

AmountAmounts withheld pursuant to this section or section	484
3770.072 of the Revised Code shall be treated as a credit against	485
the tax imposed pursuant to section 5733.06 of the Revised Code	486
for the tax year immediately following the date on which those	487
amounts are deducted and withheld, upon the lottery prize award	488
recipient, upon a beneficiary of such a recipient, or upon an	489
investor in such a recipient if the recipient is a pass-through	490
entity or disregarded entity, and shall be treated as paid by the	491
recipient, beneficiary, or investor on the date on which those	492
amounts are deducted and withheld. The credit is a refundable	493
credit and shall be claimed in the order required under section	494
5733.98 of the Revised Code. The credit is available to the	495
recipient, beneficiary, or investor even if the commission or	496
transferee does not remit to the tax commissioner the amount	497
withheld.	498

(3) Nothing in division (B)(1) or (2) of this section shall	499
be construed to allow more than one person to claim the credit for	500
any portion of each amount deducted and withheld.	501

(C) Failure of the commission or any transferee to deduct and	502
withhold the required amounts from lottery prize awards or to	503
remit amounts withheld as required by this section and section	504
3770.072 of the Revised Code shall not relieve a taxpayer	505
described in division (B) of this section from liability for the	506
tax imposed by section 5733.06 or 5747.02 of the Revised Code.	507

Section 2. That existing sections 3770.07, 3770.071,	508
3770.072, and 5747.062 of the Revised Code are hereby repealed.	509