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Committee adds Arkansas Department of Military to agencies eligible to pursue state tax-refund setoffs
Summary
A bill adding the Department of Military to the list of claimant agents authorized to pursue state income-tax refund setoffs for unpaid military fines and related collections passed the committee by voice vote.
The Revenue & Tax committee voted to add the Arkansas Department of Military to the list of claimant agents able to seek setoff against state tax refunds to collect unpaid fines assessed under military justice processes.
Senator Steve Kroll introduced House Bill 14-97 and Captain Laney Richmond, Arkansas Army National Guard, explained the policy need. Richmond said the National Guard seeks the change to recover fines imposed under military justice (nonjudicial punishment and court-martial fines) when service members separate or go absent without paying assessed fines. "Typically it's ... use or possession of a controlled substance" or AWOL-related fines, Richmond said, and fines are generally limited by statute to an amount tied to service-member pay (often in the $1–$500 range depending on rank and circumstances).
Committee members asked procedural questions about how setoffs are submitted and processed by DFA; DFA staff described that agencies submit claims to DFA, which applies them to refunds and that claims may need annual resubmission.
The committee approved the bill by voice vote; no roll-call tally appears in the transcript excerpt. Sponsor moved for a "do pass" recommendation and the motion carried on voice vote.
The bill amends the statutory definition of claimant agent to include the Department of Military; implementation would rely on DFA's existing setoff processing procedures.
