R.I. Gen. Laws § 44-30.1-3 — Collection of debts by setoff

Within a time frame established by the division of taxation, the claimant agency shall
supply the information necessary relative to each debtor owing the state money, and
further, shall certify the amount of debt or debts owed to the state by each debtor.
Upon receiving notice from the claimant agency that a named debtor owes past-due support,
delinquent court costs, fines, or restitution or benefit overpayments and interest
owed, has obligations owed as described in § 44-30.1-1(g), cash assistance benefit overpayments, medical assistance benefit overpayments, or
medical assistance cost share arrearages, the division of taxation shall determine
whether any amount, as a refund of taxes paid, is payable to the debtor, regardless
of whether the debtor filed an income tax return as a married or unmarried individual.
If the division of taxation determines that any refund is payable, the division of
taxation shall set off the past-due support, delinquent court costs, fines or restitution
or benefit overpayments and interest owed, the obligation owed, cash assistance benefit
overpayments, medical assistance benefit overpayments, or medical assistance cost
share arrearages, against the debtor’s refund and shall reduce the debtor’s refund
by the amount so determined. The division of taxation shall transfer the amount of
past-due support, delinquent court costs, fines or restitution, or benefit overpayments
and interest owed, obligation owed, cash assistance benefit overpayments, medical
assistance benefit overpayments, or medical assistance cost share arrearages, set
off against the debtor’s refund to the claimant agency or in the case of the United
States Department of Education or other out-of-state agencies, to the Rhode Island
division of higher education assistance as its agent, and in the case of education
loans held by the Rhode Island Student Loan Authority (RISLA) for itself or as agent
for another out-of-state education loan agency and which education loans are not guaranteed
by the Rhode Island division of higher education assistance or another guarantor,
to RISLA. The pendency of judicial proceedings to contest the setoff shall not stay
nor delay the setoff and transfer of refunds to the claimant agency. If the amount
of the debtor’s refund exceeds the amount of the past-due support, delinquent court
costs, fines, or restitution or benefit overpayments and interest owed, obligation
owed, cash assistance benefit overpayments, medical assistance benefit overpayments,
or medical assistance cost share arrearages, the division of taxation shall refund
the excess amount to the debtor. If in any instance with regard to the debtor the
division of taxation has received notice from more than one claimant agency, the claim
by the bureau of child support shall receive first priority, the obligations owed
shall have second priority, and the delinquent court costs, fines or restitution shall
have third priority, the benefit overpayments and interest owed the fourth priority
and the cash assistance benefit overpayments the fifth priority, and medical assistance
benefit overpayments, or medical assistance cost share arrearages the sixth priority.