Delaware-2013-HB286-Draft

Section 1.Amend Title 10 of the Delaware Code by making insertions as shown by underline as follows:

§4738 Notice of employment information upon wage attachment for a judgment.

Upon issuance of a wage attachment for a judgment by the court, a notice shall be sent to theperson upon whom a judgment has been entered requiring that such person update and correct any employment information with the court as it relates to the wage attachment and make current and future employers aware of a wage attachment. Additionally, if a person upon whom a wage attachment has been issued is aware the wage attachment is not going to the correct employer, such person shall make the correct employer aware that a wage attachment needs to occur and take the necessary steps for it to occur.Any person who has had a wage attachment issued against such person and fails to comply with this section may be found in contempt by the court.

Section 2.Amend Title 30 of the Delaware Code by making insertions as shown by underline as follows:

§545A. Collection of judgments entered in courts within the State.

(a) General.Upon receiving notice from any claimant that a taxpayer has a judgment entered against such taxpayer and owes money to such claimant as a result of the judgment, the Director shall:

(1) Reduce the amount of any overpayment of tax payable to the taxpayer, during a period not to exceed 12 months from the date of the receipt of said notice, by the amount of such judgment or unpaid portion thereof;

(2) Notify the taxpayer that such overpayment has been reduced by the amount of such reduction;

(3) Pay the amount by which such overpayment is reduced under paragraph (a)(1) of this section to such claimant in an order of priority as determined by the Director of Revenue;

(4) Pay to the taxpayer the remainder of such overpayment, if any; and

(5) Notify the Director of the Lottery to pay to the Director of Revenue any prize payable where prizes exceed a threshold established by the Director of the Lottery to a taxpayer who is also a lottery winner, and the Director of the Lottery shall:

a. Reduce the prize payable to the winner by the amount of such judgment or unpaid portion thereof;

b. Notify the winner that such prize has been reduced by the amount of such reduction;

c. Pay the amount by which such prize is reduced under paragraph (a)(5)a. of this section to the claimant; and

d. Pay to the winner the remainder of such prize, if any.

(b) Definitions.For purposes of this section:

(1) "Claimant" means any person or entity that has obtained a judgment in a court of the State of Delaware and is owed money as a result of such judgment.

(2) "Judgment" means an order of a court in which a party is awarded a monetary amount.

(3) "Lottery winner" means any person who is entitled to a payment on account of winning a prize in a lottery conducted pursuant to the provisions of Chapter 48 of Title 29.

(4) "Taxpayer" means any person or entity identified by a claimant for action by the Director of Revenue under this section.

(1) The Director shall promulgate regulations providing for:

a. Procedures and methods to be employed by a claimant with respect to the operation of this section;

b. Due notice to the taxpayer (and, in the case of an overpayment of the tax imposed by Chapter 11 of this title, any spouse with whom the taxpayer files a joint return) of the reduction in the overpayment and of the opportunity, upon request, for a hearing before the Department of Finance prior to such reduction;

c. Safeguards against the disclosure or inappropriate use of any personally identifiable information regarding the taxpayer obtained or maintained pursuant to this chapter;

d. A minimum debt, amounts below which, in light of administrative expenses and efficiency, shall, in the Director's discretion, not be subject to the collection procedures set forth in this section; and

e. Reimbursement by the claimant to the Director of (or reduction in the amount payable to the claimant agency by the Director under subsection (a) of this section by an amount equal to) all costs, direct and indirect, determined on a statistical or actual basis, of effectuating the collection procedures set forth in this section.

(2) Regulations promulgated under the authority of this subsection shall have the force and effect of law.

(d) Remedy not exclusive.The collection procedures prescribed by this section are in addition to, and not in substitution for, any other remedy available by law.

(e) Joint and combined income tax returns.

(1) If a refund from which the reduction described in paragraph (a)(1) of this section would be made is based upon a joint return of the tax imposed by Chapter 11 of this title, the Director shall:

a. Notify each taxpayer filing such return that the reduction is being made from a refund based upon such return;

b. Include in such notification a description of the right of the taxpayer, who does not have the judgment against them, to file a written protest with the Director, within 30 days of the date of mailing such notification, for the purpose of showing that taxpayer's proper share of such refund; and

c. If such a showing is made, promptly remit to the taxpayer the taxpayer's proper share of such refund, and apply the balance of such refund in the manner prescribed in subsection (a) of this section.

(2) In the event the person with a judgment against them shall be due a refund in combination with the person who does not have a judgment against them by virtue of having filed separately but combined on 1 return of the tax imposed by Chapter 11 of this title, the Director shall regard each spouse as entitled to separate refunds based upon the taxes due and prior payments of each spouse individually.In such a case, the reduction described in paragraph (a)(1) of this section shall not be applicable to such separate refund due to the spouse that does not have the judgment against them, but such reduction shall be applicable to such separate refund due to the spouse with the judgment against them.

(f) Director of Lottery.When the Director of Revenue shall notify the Director of Lottery pursuant to the provisions of subsection (a) of a debt owed by a taxpayer, and said taxpayer is also a lottery winner, the Director of Lottery shall pay over to the Director of Revenue any prize then payable or becoming payable to said taxpayer, until such time as the Director of Revenue notifies the Director of Lottery that the judgment of said taxpayer has been satisfied.The Director of Lottery shall maintain a current log of the names and other identification provided by the Director of Revenue of persons owing a judgment to a claimant.

SPONSOR:	Rep. Q. Johnson & Sen. Poore
	Reps. Baumbach, Bolden, Briggs King, Carson, Dukes, Gray, Longhurst, Miro, Paradee, Ramone, B. Short, M. Smith, Spiegelman, Walker, Wilson; Sens. Henry, Hocker, Lopez