The bill amends the existing law regarding garnishment against the state or its subdivisions, specifically allowing income tax refunds to be subject to garnishment by judgment creditors. The current law previously exempted refunds for overpayment of Arkansas state income tax from garnishment. The amendment modifies this provision, making it clear that such refunds can now be garnished, thereby expanding the scope of what can be collected by creditors in the event of a judgment against a debtor.

Additionally, the bill clarifies that the provisions regarding garnishment do not eliminate or limit the existing laws related to the set-off of debts owed to state programs. This ensures that while income tax refunds can be garnished, the rights of state programs to collect debts through set-offs remain intact. Overall, the bill aims to enhance the ability of creditors to recover debts while maintaining certain protections for state programs.

Statutes affected:
HB 1236: 16-110-413(a)