Arkansas House Bill HB1236

Arkansas 2023 Regular Session

• Introduced: 1/24/23
• Refer: 1/24/23
• Failed: 5/1/23

Caption

To Amend The Law Concerning Garnishment Against The State Or A Subdivision Of The State; And To Allow For Income Tax Refunds To Be Subject To Garnishment By Judgment Creditors.

Impact

If enacted, HB 1236 would amend Arkansas Code § 16-110-413, allowing various types of moneys, goods, and credits to be subjected to garnishment, which previously included protections against this for income tax refunds. This change could significantly affect individuals who find themselves in debt legal situations, as their tax refunds, traditionally seen as a safeguard against aggressive debt collection, would now be vulnerable to garnishment. The bill underscores a shift towards enabling creditors to collect owed funds more aggressively, potentially altering financial strains on indebted citizens.

Summary

House Bill 1236 proposes amendments to the existing laws regarding garnishment against the state and its subdivisions. The primary aim of the bill is to permit the garnishment of income tax refunds owed to individuals by the state, specifically by judgment creditors. This change signifies an important shift in how debts can be collected from individuals who are owed money by the state, impacting those who may have relied on their tax refunds for financial stability.

Contention

Notable points of contention surrounding HB 1236 could arise from concerns over consumer protection and access to funds for essential needs. Critics may argue that allowing garnishment of tax refunds could disproportionately affect lower-income individuals who depend on their refunds for managing essential expenses. The balance between allowing creditors to recover owed amounts versus protecting vulnerable populations from aggressive debt collection tactics remains a critical discussion point within the legislative debate over this bill.