Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB240 Compare Versions

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Version 2 (New)

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3		-	SENATE FLOOR VERSION - SB240 SFLR Page 1
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	3	+	Req. No. 1752 Page 1 1
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29		-	SENATE FLOOR VERSION
30		-	February 9, 2021
	28	+	STATE OF OKLAHOMA
31	29
	30	+	1st Session of the 58th Legislature (2021)
32	31
33	32		COMMITTEE SUBSTITUTE
34	33		FOR
35		-	SENATE BILL NO. 240 By: Hall
	34	+	SENATE BILL 240
	35	+	By: Hall
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41		-
	41	+	COMMITTEE SUBSTITUTE
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43	43		An Act relating to income tax refunds; amending 68
44	44		O.S. 2011, Section 205.2, as last amended by Sectio n
45	45		1, Chapter 280, O.S.L. 2015 (68 O.S. Supp. 2020,
46	46		Section 205.2), which relates to claims by specified
47	47		entities against income tax refund s; modifying
48	48		definition; adding definition; and declaring an
49	49		emergency.
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55	55		BE IT ENACTED BY THE PEOPLE OF TH E STATE OF OKLAHOMA:
56	56		SECTION 1. AMENDATORY 68 O.S. 2011, Section 205.2, as
57	57		last amended by Section 1, Chapter 280, O.S.L. 2015 (68 O.S. Supp.
58	58		2020, Section 205.2), is amended to read as f ollows:
59	59		Section 205.2. A. For purposes of this section, a “qualifying
60	60		entity” shall mean a:
61	61		1. State agency;
62	62		2. Municipal court;
63	63		3. District court;
64		-	4. Public housing authority operating pursuant to Section 1062
65		-	of Title 63 of the Oklahoma Statutes;
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67		-	SENATE FLOOR VERSION - SB240 SFLR Page 2
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	90	+	4. Public housing authority operating pursuant to Section 1062
	91	+	of Title 63 of the Oklahoma Statutes;
93	92		5. District attorney seeking to collect unp aid court-ordered
94	93		monetary obligations; or
95	94		6. Municipal government, and authorities or trusts with the
96	95		municipal government as a beneficiary, seeking to recover expenses
97	96		related to emergency medical services. Fo r the purposes of this
98	97		section, “emergency medical service” means a service whereby an
99	98		authorized agent or employee responds to a call for service with the
100	99		intent of providing care, services, transportation or treatment to
101	100		any person who may be injured or in need of medical assistance; or
102	101		7. The designee of an entity described in paragraphs 1 through
103	102		5 6 of this subsection.
104	103		B. A qualified entity seeking to collect a debt, unpaid fines
105	104		and cost or final judgment of at least Fifty Dollars ($50.00) from
106	105		an individual who has filed a state income tax return may file a
107	106		claim with the Oklahoma Tax Com mission requesting that the amount
108	107		owed to the qualified entity be deducted from any state income tax
109	108		refund due to that individual. The claim shall be filed
110	109		electronically in a form prescribed by the Tax C ommission and shall
111	110		contain information necessary to identify the person owing the debt ,
112	111		including the full name and Social Security number of the debtor.
113	112		1. Upon receiving a claim from a qualified entity, the Ta x
114	113		Commission shall deduct the claim amount, plus collection expenses
115		-	as provided in this section, from the tax refund due to the debtor
116		-	and transfer the amount to the qualified entity. Provided, the Tax
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118		-	SENATE FLOOR VERSION - SB240 SFLR Page 3
119		-	(Bold face denotes Committee Amendments) 1
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	140	+	as provided in this sec tion, from the tax refund due to the debtor
	141	+	and transfer the amount to the qualified entity. Provided, the Tax
144	142		Commission need not report available funds of less t han Fifty
145	143		Dollars ($50.00).
146	144		2. The qualified entity shall send notice to the debtor by
147	145		regular mail at the last -known address of the debtor as shown by the
148	146		records of the Tax Commission when seeking to collect a debt not
149	147		reduced to final judgment. The qu alified entity shall send notice
150	148		to the judgment debtor or municipal court defendant by firs t-class
151	149		mail at the last-known address of the judgment debtor or municipal
152	150		court defendant as shown by the records of the Tax Commission when
153	151		seeking to collect a f inal judgment or unpaid municipal fines and
154	152		cost. The Tax Commission shall provide in an ag reed electronic
155	153		format to the Department of Human Services the amount withheld by
156	154		the Tax Commission, the home address and the Social Security number
157	155		of the taxpayer. The notice shall state:
158	156		a. that a claim has been filed with the Tax Commission
159	157		for any portion of the tax refund due to the debtor or
160	158		municipal court defendant which would satisfy the
161	159		debt, unpaid municipal fines and cost, or final
162	160		judgment in full or in part,
163	161		b. the basis for the claim,
164	162		c. that the Tax Commission has deducted an amount from
165	163		the refund and remitted it to such qualified entity,
166		-	d. that the debtor or municipal court defendant has the
167		-	right to contest the claim by sending a written
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169		-	SENATE FLOOR VERSION - SB240 SFLR Page 4
170		-	(Bold face denotes Committee Amendments) 1
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	190	+	d. that the debtor or municipal court defendant has the
	191	+	right to contest the claim by sending a written
195	192		request to the qualified entity for a hearing to
196	193		protest the claim, and if the debtor or municipal
197	194		court defendant fails to apply for a hearing within
198	195		sixty (60) days after the date of the mailing of the
199	196		notice, the debtor or municipal court defendant shall
200	197		be deemed to have waived his or her opportunity to
201	198		contest the claim. Provided, if the claim was filed
202	199		by the Department of Human Services, the notice shall
203	200		state that the debtor must contest the claim by
204	201		sending a written request to the Department within
205	202		thirty (30) days after the date of the mailing of the
206	203		notice, and
207	204		e. that a collection expense o f five percent (5%) of the
208	205		gross proceeds owed to the qualified entity has been
209	206		charged to the debtor or municipal court defendant and
210	207		withheld from the refund.
211	208		3. If the qualified entity determines that a refund is due to
212	209		the taxpayer, the qualified enti ty shall reimburse the amount
213	210		claimed plus the five -percent collection expense to the taxpayer.
214	211		The qualified entity may request reimbursement of the two -percent
215	212		collection expense retained by the Tax Commi ssion. Such request
216	213		must be made within ninety ( 90) days of reimbursement to the
217		-	taxpayer. If timely requested, the Tax Commission shall make such
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219		-	SENATE FLOOR VERSION - SB240 SFLR Page 5
220		-	(Bold face denotes Committee Amendments) 1
	215	+	Req. No. 1752 Page 5 1
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	240	+	taxpayer. If timely requested, the Tax Commission shall make such
245	241		reimbursement to the qualified entity within ninety (90) days of the
246	242		request.
247	243		4. In the case of a joint re turn, the notice shall state:
248	244		a. the name of any taxpayer named in the return against
249	245		whom no debt, no unpaid fines and cost, or final
250	246		judgment is claimed,
251	247		b. the fact that a debt, unpaid municipal fines and cost,
252	248		or final judgment is not claimed against t he taxpayer,
253	249		c. the fact that the taxpayer is ent itled to receive a
254	250		refund if it is due regardless of the debt, municipal
255	251		fines and cost, or final judgment asserted against the
256	252		debtor or municipal court defendant,
257	253		d. that in order to obtain the refund due, the taxpayer
258	254		must apply, in writing, for a heari ng with the
259	255		qualified entity named in the notice within sixty (60)
260	256		days after the date of the mailing of the notice.
261	257		Provided, if the claim was filed by the Depart ment of
262	258		Human Services, the notice shall st ate that the
263	259		taxpayer must apply, in writing, for a hearing with
264	260		the Department within thirty (30) days after the date
265	261		of the mailing of the notice, and
266	262		e. if the taxpayer against whom no debt, no unpaid
267	263		municipal fines and cost, or final judgment is claim ed
268		-	fails to apply in writing for a hearing within sixty
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270		-	SENATE FLOOR VERSION - SB240 SFLR Page 6
271		-	(Bold face denotes Committee Amendments) 1
	265	+	Req. No. 1752 Page 6 1
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	290	+	fails to apply in writing for a hearing within sixty
296	291		(60) days after the mailing of the notice, the
297	292		taxpayer shall have waived his or her right to a
298	293		refund. Provided, if the claim was filed by the
299	294		Department of Human Services, the notice shall state
300	295		that if the taxpayer fails to apply in writing for a
301	296		hearing with the Department within thirty (30) days
302	297		after the date of the mailing of the notice, the
303	298		taxpayer shall have waived his or her right to a
304	299		refund.
305	300		C. If the qualified entity asserting the claim receives a
306	301		written request for a hearing from th e debtor or taxpayer against
307	302		whom no debt, no municipal fines and cost, or final judgment is
308	303		claimed, the qualified entity shall grant a hearing according to the
309	304		provisions of the Administrative Procedures A ct. It shall be
310	305		determined at the hearing whethe r the claimed sum is correct or
311	306		whether an adjustment to the claim shall be made. Pending final
312	307		determination at the hearing of the validity of the debt, unpaid
313	308		fines and cost, or final judgment asserted by the qualified entity,
314	309		no action shall be taken i n furtherance of the collection of the
315	310		debt, unpaid fines and cost, or final judgment. Appeals from
316	311		actions taken at the hearing shall be in accordance with the
317	312		provisions of the Administrative Procedures A ct.
318		-	D. Upon final determination at a heari ng, as provided for in
319		-	subsection C of this section, of the amount of the debt, unpaid
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321		-	SENATE FLOOR VERSION - SB240 SFLR Page 7
322		-	(Bold face denotes Committee Amendments) 1
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	339	+	D. Upon final determination at a hearing, as provided for in
	340	+	subsection C of this section, of the amount of the debt, unpaid
347	341		fines and cost, or final judgment, or upon failure of the debtor or
348	342		taxpayer against whom no debt, no unpaid fines and cost, o r final
349	343		judgment is claimed to request such a hea ring, the qualified entity
350	344		shall apply the amount of the claim to the debt owed. Any amounts
351	345		held by the qualified entity in excess of the final determination of
352	346		the debt and collection expense shall be ref unded by the qualified
353	347		entity to the taxpayer. H owever, if the tax refund due is
354	348		inadequate to pay the collection expense and debt, unpaid fines and
355	349		cost, or final judgment, the balance due the qualified entity s hall
356	350		be a continuing debt or final judgment until paid in full.
357	351		E. Upon receipt of a claim as provided in subsection A of this
358	352		section, the Tax Commission shall:
359	353		1. Deduct from the refund five percent (5%) of the gross
360	354		proceeds owed to the qualified enti ty, and distribute it by
361	355		retaining two percent (2%) and transferring three percent (3%) to
362	356		the qualified entity, as an expense of collection. The two percent
363	357		(2%) retained by the Tax Commission shall be deposited in the
364	358		Oklahoma Tax Commission Fund;
365	359		2. Transfer the amount of the claimed debt, unp aid fines and
366	360		cost, or final judgment or so much thereof as is available to the
367	361		qualified entity;
368		-	3. Notify the debtor in writing as to how the refund was
369		-	applied; and
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371		-	SENATE FLOOR VERSION - SB240 SFLR Page 8
372		-	(Bold face denotes Committee Amendments) 1
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	388	+	3. Notify the debtor in writing as to how the refund was
	389	+	applied; and
397	390		4. Refund to the debtor any balance remaini ng after deducting
398	391		the collection expense a nd debt, unpaid fines and cost, or final
399	392		judgment.
400	393		F. The Tax Commission shall deduct from any state tax refund
401	394		due to a taxpayer the amount of delinquent state tax and penalty and
402	395		interest thereon, which such ta xpayer owes pursuant to any state tax
403	396		law prior to payment of such refund.
404	397		G. The Tax Commission shall have first priority over all other
405	398		qualified entities, when the Tax Commission is collecting a debt,
406	399		municipal court fines and cost, or final judgment p ursuant to the
407	400		provisions of this section. Subsequent to the Tax Commission
408	401		priority, a claim filed by the Department of Human Services for the
409	402		collection of child support and spousal support shall have priority
410	403		over all other claims filed pursuant to thi s section. Priority in
411	404		multiple claims by other qualified entities pursuant to the
412	405		provisions of this section shall be in the order in time, in which
413	406		the Tax Commission receives the claim from the qualified entities
414	407		required by the provisions of subsectio n B of this section.
415	408		H. The Tax Commission shall prescribe or approve forms and
416	409		promulgate rules and regulations for implementing the provisions of
417	410		this section.
418		-	I. The information obtained by a qualified entity from the Tax
419		-	Commission pursuant to the pr ovisions of this section shall be used
420		-	only to aid in collection of the debt, unpaid f ines and cost, or
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422		-	SENATE FLOOR VERSION - SB240 SFLR Page 9
423		-	(Bold face denotes Committee Amendments) 1
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	437	+	I. The information obtained by a qualified entity from the Tax
	438	+	Commission pursuant to the pr ovisions of this section shall be used
	439	+	only to aid in collection of the debt, unpaid fines a nd cost, or
448	440		final judgment owed to the qualified entity. Disclosure of the
449	441		information for any other purpose shall constitute a misdemeanor.
450	442		Any employee of a qua lified entity or person convicted of violat ing
451	443		this provision shall be subject to a fine not exceeding One Thousand
452	444		Dollars ($1,000.00) or imprisonment in the county jail for a term
453	445		not exceeding one (1) year, or both fine and imprisonment and, if
454	446		still employed by the qualified entity, shall be di smissed from
455	447		employment.
456	448		J. The Tax Commission m ay employ the procedures provided by
457	449		this section in order to collect a debt owed to the Internal Revenue
458	450		Service if the Internal Revenue Service requires such proc edure as a
459	451		condition to providing informati on to the Commission concerning
460	452		federal income tax.
461	453		K. The provisions of this section shall not apply to claims
462	454		filed under the provisions of Section 290 6 or Section 5011 of this
463	455		title.
464	456		SECTION 2. It being immediately necessary for the pr eservation
465	457		of the public peace, health or safety, an emergency is hereby
466	458		declared to exist, by reason whereof this act shall take effect and
467	459		be in full force from and after its passage an d approval.
468		-	COMMITTEE REPORT BY: COMMITTEE ON FINANCE
469		-	February 9, 2021 - DO PASS AS AMENDED
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