SB 577 Summary

• Amends 68 O.S. 2011, Section 205.2 to define "qualified entity" and establish which entities may file claims against state tax refunds for unpaid debts, including state agencies, municipal courts, district courts, public housing authorities, and district attorneys seeking to collect unpaid court-ordered monetary obligations.

• Allows qualified entities to file claims with the Oklahoma Tax Commission to intercept state income tax refunds for debts of at least $50.00, with a 5% collection expense deducted (2% retained by Tax Commission, 3% transferred to the claiming entity).

• Requires the Tax Commission to notify debtors by mail of claims filed against their refunds, including notice of the right to contest the claim within 60 days (or 30 days for Department of Human Services claims) through a hearing process.

• Establishes that the Tax Commission has first priority over other entities, followed by the Department of Human Services for child support and spousal support claims, with remaining claims processed in the order received.

• Repeals Section 1, Chapter 266, O.S.L. 2013 (a duplicate provision) and becomes effective November 1, 2015.