It is enacted by the General Assembly as follows:

SECTION 1. Section 44-33-7 of the General Laws in Chapter 44-33 entitled "Property Tax Relief" is hereby amended to read as follows:

44-33-7. Satisfaction of outstanding tax liabilities. Satisfaction of outstanding liabilities. -- The amount of any claim payable under this chapter may be applied by the division of taxation against any outstanding liability on the books of the division or against any debt owed to a "claimant agency," as defined in section 44-30.1-1, subject to the collection by setoff of a personal income tax refund pursuant to chapter 30.1 of title 44. The application of debt or setoff is effective against the claimant or against anyone who was a member of the claimant's household in the year to which the claim relates.

SECTION 2. This act shall take effect upon passage.