§ 1–350.09. Offset of delinquent debt against District employee pay and against contractual obligations to District contractors.

(a)(1) The Central Collection Unit may collect delinquent debt from District employees by deducting delinquent debt from the biweekly pay of District employees, in an amount not to exceed 10% of an employee’s gross biweekly pay, until the delinquent debt is fully satisfied.

(2) If a District employee’s wages are subject to a preexisting attachment or attachments, the Central Collection Unit shall not exercise its authority under paragraph (1) of this subsection until the preexisting attachments have been satisfied, in order of priority.

(b)(1) The Central Collection Unit may collect delinquent debt from District contractors by deducting the delinquent debt from any amounts owed to a District contractor pursuant to a contractual obligation between the District and the contractor.

(2) For the purposes of this subsection, the term:

(A) “Contractual obligation” includes an obligation arising from a contract or a grant agreement described in subparagraph (B) of this paragraph that is entered into after September 20, 2012.

(B) “District contractor” includes any person who receives payments from the District pursuant to a contract or a grant agreement that requires the grantee to perform services in consideration for the payment of the grant amount.

(c) The Central Collection Unit may collect delinquent debts by offsetting District tax refunds and District lottery winnings against delinquent debts owed to the District.