Ch. 164             1997 Session Laws of Kansas             1159

Chapter 164

HOUSE BILL No. 2579

An Act concerning setoff against debtors of the state, municipalities and certain foreign
states; amending K.S.A. 1996 Supp. 75-6202 and repealing the existing section; also
repealing K.S.A. 1996 Supp. 75-6202a.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 1996 Supp. 75-6202 is hereby amended to read as
follows: 75-6202. As used in this act:

(a) ``Debtor'' means any person who:

(1) Owes a debt to the state of Kansas or any state agency or any
municipality;

(2) owes support to an individual, or an agency of another state, who
is receiving assistance in collecting that support under K.S.A. 39-756 and
amendments thereto or under part D of title IV of the federal social
security act (42 U.S.C. (section) 651 et seq.), as amended; or

(3) owes a debt to a foreign state agency.

(b) ``Debt'' means:

(1) Any liquidated sum due and owing to the state of Kansas, or any
state agency, municipality or foreign state agency which has accrued
through contract, subrogation, tort, operation of law, or any other legal
theory regardless of whether there is an outstanding judgment for that
sum. A debt shall not include: (A) Special assessments except when the
owner of the property assessed petitioned for the improvement and any
successor in interest of such owner of property; or (B) fines or penalties
assessed by a municipal court, except for cigarette or tobacco infractions
and traffic infractions and offenses; or

(2) any amount of support due and owing an individual, or an agency
of another state, who is receiving assistance in collecting that support
under K.S.A. 39-756 and amendments thereto or under part D of title
IV of the federal social security act (42 U.S.C. (section) 651 et seq.), as amended,
which amount shall be considered a debt due and owing the department
of social and rehabilitation services for the purposes of this act.

(c) ``Refund'' means any amount of Kansas income tax refund due to
any person as a result of an overpayment of tax, and for this purpose, a
refund due to a husband and wife resulting from a joint return shall be
considered to be separately owned by each individual in the proportion
of each such spouse's contribution to income, as the term ``contribution
to income'' is defined by rules and regulations of the secretary of revenue.

1160             1997 Session Laws of Kansas             Ch. 164

(d) ``Net proceeds collected'' means gross proceeds collected through
final setoff against a debtor's earnings, refund or other payment due from
the state or any state agency minus any collection assistance fee charged
by the director of accounts and reports of the department of administra-
tion.

(e) ``State agency'' means any state office, officer, department, board,
commission, institution, bureau, agency or authority or any division or
unit thereof and any judicial district of this state or the clerk or clerks
thereof. ``State agency'' shall also include any district court utilizing col-
lection services pursuant to K.S.A. 1996 Supp. 75-719 and amendments
thereto to collect debts owed to such court.

(f) ``Person'' means an individual, proprietorship, partnership, limited
partnership, association, trust, estate, business trust, corporation, other
entity or a governmental agency, unit or subdivision.

(g) ``Director'' means the director of accounts and reports of the de-
partment of administration.

(h) ``Municipality'' means any municipality as defined by K.S.A. 75-
1117, and amendments thereto.

(i) ``Payor agency'' means any state agency which holds money for, or
owes money to, a debtor.

(j) ``Foreign state or foreign state agency'' means the states of Colo-
rado, Missouri, Nebraska or Oklahoma or any agency of such states which
has entered into a reciprocal agreement pursuant to K.S.A. 1996 Supp.
75-6215 and amendments thereto.

Sec. 2. K.S.A. 1996 Supp. 75-6202 and 75-6202a are hereby re-
pealed.

Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.

Approved May 9, 1997.