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2009 SESSION

096685228
SENATE BILL NO. 1292
Offered January 14, 2009
Prefiled January 14, 2009
A BILL to amend and reenact § 58.1-520 of the Code of Virginia, relating to Setoff Debt Collection Act; definitions.
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Patron-- Edwards
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Referred to Committee on Finance
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Be it enacted by the General Assembly of Virginia:

1.  That § 58.1-520 of the Code of Virginia is amended and reenacted as follows:

§ 58.1-520. Definitions.

As used in this article:

"Claimant agency" means any administrative unit of state, county, city or town government, including department, institution, commission, authority, or the office of Executive Secretary of the Supreme Court, any circuit or district court and the Internal Revenue Service. All state agencies and institutions shall participate in the setoff program.

"Debtor" means any individual having a delinquent debt or account with any claimant agency which obligation has not been satisfied by court order, set aside by court order, or discharged in bankruptcy.

"Delinquent debt" means any liquidated sum due and owing any claimant agency, or any restitution ordered paid to a clerk of the court pursuant to Title 19.2, including any amount of court costs or fines which have accrued through contract, subrogation, tort, operation of law, or any other legal theory regardless of whether there is an outstanding judgment for that sum which is legally collectible and for which a collection effort has been or is being made.

"Mailing date of notice" means the date of notice appearing thereon.

"Refund" means any individual's (i) Virginia state or local income tax refund payable pursuant to §§ 58.1-309 and 58.1-546 or (ii) federal income tax refund payable pursuant to § 6402 of the Internal Revenue Code. This term also includes any refund belonging to a debtor resulting from the filing of a joint income tax return or a refund belonging to a debtor resulting from the filing of a return where husband and wife have elected to file a combined return and separately state their Virginia taxable incomes under the provisions of § 58.1-324 B 2.

2.  That the provisions of this act shall become effective on the effective date of federal legislation enacted by the United States Congress that allows local governments, with assistance of their state government, to collect delinquent local tax debts using offsets from federal income tax refunds.