HB 29 — AN ACT TO AMEND TITLE 10 AND TITLE 30 OF THE DELAWARE CODE RELATING TO JUDGMENTS.

Summary

This bill establishes a writ of attachment of tax refunds and lottery winnings. This bill provides a procedure for interception of tax refunds and lottery winnings by the Department of Finance for judgments resulting from a breach of a residential or commercial rental agreement. This bill provides for the opportunity to contest the amount owed in regards to funds seized pursuant to a writ of attachment of tax refunds or lottery winnings. The bill directs the Department of Finance to work with the Courts to develop an electronic system relating to the collection of judgments through tax refunds and lottery winnings. The bill also directs the Courts and Department of Finance to work together and make a recommendation as to the amount of a special fee that is meant to offset the development, implementation and administration of the collection of judgments through tax refunds and lottery winnings. The Department and Finance are directed to provide a report to the General Assembly by January 10, 2018 regarding the costs of administrating this provision and an appropriate off-setting fee to be charged for issuance of the writ described herein. Sections 1 and 2 of the bill will not take effect until ongoing funds are provided to develop, implement and administer Sections 1 and 2, and until legislation is passed implementing the new fee.

Bill Text

• Bill Text View text Current pdf

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill establishes a procedure for the writ of attachment on tax refunds and lottery winnings for judgments resulting from breaches of rental agreements.

• 10 Del. C. § 5033

  § 5033. Writ of attachment of tax refunds and lottery winnings. A judgment creditor may apply to the court for a writ of attachment pursuant to which the judgment creditor may attach tax refunds, or lottery winnings that may be due to the judgment debtor, for any judgment resulting from the breach of a residential or commercial rental agreement, if such judgment creditor has in good faith attempted either a wage attachment, personal property seizure or a vehicle seizure which did not result in collection of the debt. Additionally, before a writ of attachment of tax refunds or lottery winnings is filed, the judgment creditor must send a certified letter to a judgment debtor advising that a writ of attachment of tax refunds and lottery winnings is going to be filed. Any portion of a tax refund that is comprised of an income tax credit is not eligible for seizure. Notice shall be provided to the Department of Finance that a writ of attachment of tax refunds and lottery winnings has issued. Upon seizure of tax refunds or lottery winnings by the Department of Finance pursuant to this writ, a judgment debtor shall have the opportunity to contest the amount owed. In order to contest the amount owed, the judgment debtor must file an objection with the court and serve such objection on the Department of Finance within 30 days of notice being sent to the judgment debtor by the Department of Finance that a seizure has occurred. If a judgment debtor contests the amount owed, the court shall provide a hearing.

  This provision allows creditors to attach tax refunds and lottery winnings to satisfy debts from breaches of rental agreements.

• 30 Del. C. § 545A

  § 545A. Collection of judgments entered in courts within the State. (a) General. Upon receiving notice that a writ of attachment of tax refunds and lottery winnings has been issued, the Director shall: (1) Reduce the amount of any overpayment of tax payable to the judgment debtor and seize that amount; (2) Notify the judgment debtor that such overpayment has been reduced by the amount in the writ of attachment and provide notice to the judgment debtor that such amount has been seized and he or she has 30 days to contest the amount owed in the court that the writ of attachment was issued; (3) Pay the amount by which such overpayment is reduced under paragraph (a)(1) of this section to the judgment creditor after satisfying all notice requirements and completion of any court proceedings as required by this title and title 10; (4) Pay to the judgment debtor the remainder of such overpayment, if any; and (5) Notify the Director of the State Lottery Office that the Department of Finance has received a writ of attachment whereupon the Director of the State Lottery Office shall, for those prizes that exceed a threshold established by the Director of the State Lottery Office: a. Reduce the prize payable to the judgment debtor by the amount provided in the writ of attachment and seize this amount; b. Notify the judgment debtor that such prize has been reduced by the amount in the writ of attachment and provide notice to the judgment debtor that such amount has been seized and he or she has 30 days to contest the amount owed in the court that issued the writ of attachment; c. Pay the amount by which such prize is reduced under paragraph (a)(5)a. of this section to the judgment creditor after satisfying all notice requirements and completion of any court proceedings as required by this title and title 10; d. Pay to the judgment debtor the remainder of such prize, if any.

  This section allows the Director of Finance to reduce tax overpayments and lottery prizes to satisfy judgments.

Action History

1. March 28, 2017

   Amendment HA 2 to HB 29 - Introduced and Placed With Bill

2. March 15, 2017

   Amendment HA 1 to HB 29 - Introduced and Placed With Bill

3. January 25, 2017

   Reported Out of Committee (Judiciary) in House with 8 On Its Merits

4. January 05, 2017

   Introduced and Assigned to Judiciary Committee in House

Sponsors

• Nicole Poore · Primary
• Timothy D. Dukes · Cosponsor
• Ronald E. Gray · Cosponsor
• Kevin S Hensley · Cosponsor
• Trey Paradee · Cosponsor
• Jeffrey N. Spiegelman · Cosponsor
• David L. Wilson · Cosponsor
• Kendra Johnson · Primary
• Michael Ramone · Cosponsor
• Bruce C. Ennis · Cosponsor

Subjects