Title 44
Taxation

Chapter 30.1
Setoff of Refund of Personal Income Tax

§ 44-30.1-1. Definitions.

(a) “Benefit overpayments and interest owed” means any amount in excess of five hundred dollars ($500) determined to be recoverable under the provisions of chapters 39 — 44 of title 28.

(b) “Cash assistance benefit overpayments” means any amount of cash assistance benefits which constitutes an overpayment of benefits under the provisions of the Rhode Island Works Program as previously established by chapter 5.2 of title 40, and/or the predecessor family assistance programs, formerly known as the Family Independence Program, as previously established by chapter 5.1 of title 40, and the Aid to Families With Dependent Children program, as previously established by § 40-6-4, which overpayment amount has been established by court order, by administrative hearing conducted by the department of human services, or by written agreement between the department of human services and the individual.

(c) “Claimant agency” means either:

(1) The department of human services, with respect (1) to past-due support which has been assigned to the department of human services by public assistance and medical assistance recipients or by the department of children, youth and families, (2) past-due support which it is attempting to collect on behalf of any individual not eligible as a public assistance recipient, and (3) cash assistance benefit overpayments or medical assistance benefit overpayments, as defined herein; or

(2)(i) The Rhode Island division of higher education assistance, with respect to obligations owed to that agency or to the state of Rhode Island by reason of default or failure to pay student loans, health professions contract advances or scholarships or grant over-awards, or

(ii) The Rhode Island division of higher education assistance, acting as agent for the United States Department of Education or other student loan guarantee agencies in other states which have negotiated a reciprocal arrangement with the Rhode Island division of higher education assistance for the setoff of refunds of personal income taxes against defaulted loan obligations.

(3) The Rhode Island court administrative office, with respect to court costs, fines, and restitution owed; or

(4) The department of labor and training with respect to benefit overpayments and interest owed in excess of five hundred dollars ($500).

(d) “Court costs owed” means any fines, fees, and/or court costs which have been assessed pursuant to a criminal disposition by a judge of the district, family and superior courts, including, but not limited to, those amounts assessed pursuant to chapters 20 and 25 of title 12 and those amounts assessed pursuant to title 31, including also those fines, fees, and/or court costs assessed by the traffic tribunal or municipal court associated with motor vehicle violations which have not been paid and which have been declared delinquent by the administrative judge of the court making the assessment.

(e) “Debtor” means:

(1) Any individual who owes past-due support which has been assigned to the department of human services by public assistance and medical assistance recipients or by the department of children, youth and families, or owes past due support to any individual not eligible as a public assistance recipient;

(2) Any individual who has obligations owed to the Rhode Island division of higher education assistance or the state of Rhode Island, the United States Department of Education or other states and agencies that have negotiated reciprocal agreements with the Rhode Island division of higher education assistance;

(3) Any individual who owes fines, fees, and/or court costs to the superior, family, district courts and the traffic tribunal and municipal court associated with motor vehicle violations;

(4) Any individual who owes restitution to any victim of any offense which has been ordered by a judge of the district, family and superior courts pursuant to a disposition in a criminal case and which has been made payable through the administrative office of state courts pursuant to § 12-19-34 except that obligations discharged in bankruptcy shall not be included;

(5) Any individual who owes any sum in excess of five hundred dollars ($500) for benefit overpayments and interest to the department of labor and training determined to be recoverable under the provisions of chapters 39-44 of title 28.

(6) Any individual who owes any sum of cash assistance benefit overpayments to the department of human services.

(7) Any individual who has obligations owed to the Rhode Island Student Loan Authority (RISLA), or other states and agencies that have negotiated reciprocal agreements with RISLA.

(f) “Division” means the department of revenue, division of taxation.

(g) “Fines owed” means any fines, fees, and/or court costs which have been ordered paid as a penalty in a criminal case by a judge of the district, family and superior courts and those fines, fees, and/or court costs ordered paid by the traffic tribunal or municipal court for motor vehicle violations as described in § 31-41.1-4 which have not been paid and which have been declared delinquent by the administrative judge of the court making the assessment.

(h) “Medical assistance benefit overpayment” means any amount of medical assistance benefits which constitutes an overpayment of medical assistance benefits. The department is authorized to promulgate rules and regulations to provide for notice and hearing prior to the income tax intercept by the department for income tax intercept for medical assistance benefits overpaid to the recipient. The amount of overpayment of benefits may include the overpayment of benefits due to the fact that the Medicaid recipient failed to pay the cost share obligation lawfully imposed in accordance with Rhode Island law.

(i) “Medical assistance cost share arrearage” means any amount due and owing to the department of human services as a result of a Medicaid recipient’s failure to pay their cost share obligation, including any amount due for a cost sharing obligation or medical assistance premium obligation, imposed in accordance with Title 40, Chapter 8.4 of the Rhode Island General Laws.

(j) “Obligation owed” means the total amount owed by any individual on:

(1) Any guaranteed student loan or parent loan for undergraduate students for which the Rhode Island division of higher education assistance has had to pay the guarantee, or for which the Rhode Island division of higher education assistance is acting as agent on behalf of the United States Department of Education or other state cooperating agencies which have had to pay a guarantee,

(2) Any contract fee advanced by either the Rhode Island division of higher education assistance or the state of Rhode Island on behalf of any individual participating in a health professions educational program for which payment has not been made according to the terms of the contract, and

(3) Any amount of scholarship or grant funds which constitutes an over-award, whether due to error or to the submission of false information, and for which repayment has been demanded by the agency, but which has not been paid.

(4) Any education loan held by the Rhode Island Student Loan Authority (RISLA) not guaranteed by the Rhode Island division of higher education assistance or other guarantor.

(k) “Past-due support” means the amount of court-ordered child support or maintenance, child medical support or a spousal support order for a custodial parent having custody of a minor child, which is overdue or otherwise in arrears, regardless of whether there is an outstanding judgment for that amount, and whether the order for the support or maintenance has been established by a court or by an administrative process authorized under the laws of any state.

(l) “Refund” means the Rhode Island income tax refund which the division of taxation determines to be due to a taxpayer.

(m) “Restitution owed” means any amount which has been ordered paid pursuant to a criminal case disposition by a judge of the district, family and superior courts pursuant to chapter 19 of title 12, which has not been paid and which has been declared delinquent by the administrative judge of the court making the assessment.