§ 44-30.1-3 - Collection of debts by setoff.
SECTION 44-30.1-3
§ 44-30.1-3 Collection of debts by setoff.– Within a time frame established by the division of taxation, the claimantagency shall supply the information necessary relative to each debtor owing thestate money, and further, shall certify the amount of debt or debts owed to thestate by each debtor. Upon receiving notice from the claimant agency that anamed debtor owes past-due support, delinquent court costs, fines, orrestitution or benefit overpayments and interest owed, has obligations owed asdescribed in § 44-30.1-1(g), cash assistance benefit overpayments, medicalassistance benefit overpayments, or medical assistance cost share arrearages,the division of taxation shall determine whether any amount, as a refund oftaxes paid, is payable to the debtor, regardless of whether the debtor filed anincome tax return as a married or unmarried individual. If the division oftaxation determines that any refund is payable, the division of taxation shallset off the past-due support, delinquent court costs, fines or restitution orbenefit overpayments and interest owed, the obligation owed, cash assistancebenefit overpayments, medical assistance benefit overpayments, or medicalassistance cost share arrearages, against the debtor's refund and shall reducethe debtor's refund by the amount so determined. The division of taxation shalltransfer the amount of past-due support, delinquent court costs, fines orrestitution, or benefit overpayments and interest owed, obligation owed, cashassistance benefit overpayments, medical assistance benefit overpayments, ormedical assistance cost share arrearages, set off against the debtor's refundto the claimant agency or in the case of the United States Department ofEducation or other out-of-state agencies, to Rhode Island higher educationassistance authority (RIHEAA) as its agent , and in the case of education loansheld by the Rhode Island Student Loan Authority (RISLA) for itself or as agentfor another out-of-state education loan agency and which education loans arenot guaranteed by RIHEAA or another guarantor, to RISLA. The pendency ofjudicial proceedings to contest the setoff shall not stay nor delay the setoffand transfer of refunds to the claimant agency. If the amount of the debtor'srefund exceeds the amount of the past-due support, delinquent court costs,fines, or restitution or benefit overpayments and interest owed, obligationowed, cash assistance benefit overpayments, medical assistance benefitoverpayments, or medical assistance cost share arrearages, the division oftaxation shall refund the excess amount to the debtor. If in any instance withregard to the debtor the division of taxation has received notice from morethan one claimant agency, the claim by the bureau of child support shallreceive first priority, the obligations owed shall have second priority, andthe delinquent court costs, fines or restitution shall have third priority, thebenefit overpayments and interest owed the fourth priority and the cashassistance benefit overpayments the fifth priority, and medical assistancebenefit overpayments, or medical assistance cost share arrearages the sixthpriority.