Sec. 1. 36 MRSA §5276-A, sub-§3-A, as enacted by PL 1993, c. 395, §23, is amended to read:

3-A. Transfer of proceeds. After providing the notice required by subsection 2, the assessor shall transfer the setoff refund amount to the creditor agency or agencies. In the case of liquidated child support debts that the Department of Human Services has contracted to collect, if the debtor owes both the Department of Human Services and a custodial parent and the amount of the refund of the debtor is not adequate to satisfy the claims of the Department of Human Services and the custodial parent, the refund must be divided equally between the Department of Human Services and the custodial parent.__If either the claim of the Department of Human Services or the custodial parent is less than 1/2 of the refund, the claim of that party must be paid in full and the balance of the refund paid to the other party.

SUMMARY

This bill provides that if both the Department of Human Services and a custodial parent are owed past child support debts from a person entitled to an income tax refund, that refund must be split equally between the department and the custodial parent.