This bill amends the 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, which previously exempted refunds for overpayment of Arkansas state income tax from garnishment, is revised to remove this exemption. The new legal language clarifies that any indebtedness or assets belonging to a defendant in a civil action, held by the state or its subdivisions, can now be garnished.

Additionally, the bill maintains that the provisions regarding the set-off of debts owed to state programs remain intact, ensuring that the new garnishment rules do not interfere with existing laws related to debt recovery. Overall, this legislation expands the scope of garnishment to include income tax refunds, thereby providing judgment creditors with additional avenues for collecting debts.

Statutes affected:
HB 1676: 16-110-413(a)