Arkansas Code
Subchapter 3 - Setoff Against State Tax Refund
§ 26-36-303. Definitions

As used in this subchapter:
(1)
(A) “Claimant agency” means:
(i) State-supported colleges, universities, and technical institutes;
(ii) The Department of Human Services;
(iii) The Student Loan Guarantee Foundation of Arkansas;
(iv) The Auditor of State;
(v) The Division of Higher Education;
(vi) The Office of Child Support Enforcement;
(vii) Arkansas circuit, county, district, or city courts;
(viii) Housing authorities created under § 14-169-101 et seq.;
(ix) The Employee Benefits Division;
(x) The Office of Personnel Management;
(xi) County collectors and county treasurers;
(xii) The Department of Health;
(xiii) The Internal Revenue Service;
(xiv) The Arkansas Real Estate Commission;
(xv) The Arkansas Public Defender Commission created under § 16-87-202;
(xvi) The Arkansas Department of Transportation;
(xvii) The State Securities Department;
(xviii) The Office of Driver Services; and
(xix) Arkansas Tobacco Control and the Arkansas Tobacco Control Board.

(B) An entity shall not be added as a claimant agency under this subdivision (1) after July 16, 2003, unless the entity has an annual outstanding debt of two hundred thousand dollars ($200,000);

(2) “Debt” means:
(A) Any liquidated sum due and owing any claimant agency, which has accrued through contract, subrogation, tort, operation of law, legal proceeding, or any other legal theory, regardless of whether there is an outstanding judgment for that sum;
(B) Accrued obligations due to an assignment of child support rights made to the state as a condition of eligibility for welfare assistance and those which have accrued from contract with the claimant agency by an individual who is not the recipient of welfare assistance;
(C) Money owed to a claimant agency as a result of a debtor's cashing both the original and the duplicate state warrants;
(D) All of the following that are not under appeal:
(i) Traffic fines;
(ii) Any court-imposed fine or cost, including fines related to the prosecution of hot checks under the Arkansas Hot Check Law, § 5-37-301 et seq.;
(iii) Fees for reinstatement of a driver's license payable to the Office of Driver Services under §§ 5-65-119, 27-16-508, and 27-16-808; and
(iv) Restitution ordered by a circuit, county, district, or city court related to the violation of any state law;

(E) Money owed to a claimant agency for all costs as a result of the debtor's use of state medical and pharmacy benefits for which he or she is not entitled;
(F) Money owed to a claimant agency for all costs resulting from an overpayment of wages or salaries, including a lump-sum payment; and
(G) Money owed to a claimant agency for all delinquent taxes, all costs resulting from delinquent taxes, and any penalties assessed against a delinquent taxpayer under § 26-36-201;

(3) “Debtor” means any individual owing money to or having a delinquent account with any claimant agency, which obligation has not been adjudicated, satisfied by court order, set aside by court order, or discharged in bankruptcy;
(4) “Refund” means the Arkansas income tax refund that the Revenue Division of the Department of Finance and Administration determines to be due any individual taxpayer less any amounts determined by the Revenue Division of the Department of Finance and Administration to be due to the Revenue Division of the Department of Finance and Administration for payment of any state tax as defined in the Arkansas Tax Procedure Act, § 26-18-101 et seq.; and
(5) “Setoff” means the withholding of part or all of income tax refunds due individuals who owe debts to the State of Arkansas, to a county, a city, or a town, or to a housing authority created under § 14-169-101 et seq.