In this title the following words have the meanings indicated. “Administration” means the Child Support Administration of the Department of Human Services. “Earnings” includes: any form of periodic payment to an individual, including: an annuity; a pension; Social Security payments; workers’ compensation payments; and unemployment insurance benefits; and any commissions or fees paid in connection with the obligor’s employment. “Employer” means any person who is paying earnings to an obligor. “Employer” includes a governmental entity. “Local support enforcement office” means 1 of the following that is responsible for support enforcement: a county agency; or a component of the circuit court for a county. “Obligee” means any person who is entitled to receive support. “Obligee” includes a state. “Obligor” means an individual who is required to pay support under a court order. “Support” includes: child support; spousal support; support of destitute adult children; and support of destitute parents. “Support enforcement agency” means 1 of the following that receives support payments under a court order: the Administration; or a local support enforcement office.

A contempt proceeding for failure to make a payment of child or spousal support under a court order shall be brought within 3 years of the date that the payment of support became due.

This subtitle does not limit the authority of a State’s Attorney, the Administration, or a local support enforcement office to use any other civil or criminal remedy to enforce a child or spousal support order.

There is a Child Support Administration in the Department of Human Services.

In this section the following words have the meanings indicated. “Federal performance incentive payments” means federal funds paid to the Department of Human Services as provided under Title IV–D of the federal Social Security Act. “Fund” means the Child Support Reinvestment Fund. There is established a Child Support Reinvestment Fund within the Administration. The Fund is a special, nonlapsing fund that shall consist of all of the federal performance incentive payments received by the Department of Human Services in a fiscal year. The Fund is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold and the State Comptroller shall account for the Fund. The proceeds of the Fund shall be invested and reinvested. Any investment earnings shall be paid into the Fund. Money in the Fund, including any money that is distributed from the Fund to a county under § 10–116(b) of this subtitle, and any federal funds leveraged with money from the Fund shall only be expended by the Administration or by a county for activities that may contribute to the efficiency and effectiveness of the statewide child support enforcement program established under this subtitle, including: privatizing and outsourcing of child support enforcement services; improving automation capabilities; creating public awareness projects; developing programs and special projects; establishing a performance incentive program to provide incentives for employees; assisting in staff development and training; and establishing community outreach programs and activities. Money from the Fund shall supplement and may not be used to supplant the budget of the Administration, a county, or a local support enforcement office. Expenditures from the Fund may only be made: pursuant to an appropriation approved by the General Assembly in the annual State budget; or by the budget amendment procedure provided for in § 7–209 of the State Finance and Procurement Article.

The Administration exercises its authority, duties, and functions under any law of this State subject to the authority of the Secretary of Human Services under any law of this State.

The Administration shall: coordinate a statewide program for support enforcement; maintain a central registry of records on absent parents as required under § 12–105 of this article; locate absent parents; determine the ability of an absent parent to pay child support; accept assignment of right, title, or interest in child support made under § 5–312(b)(2) of the Human Services Article; in any case in which an assignment is made under § 5–312(b)(2) of the Human Services Article, prosecute and maintain any legal or equitable action available to establish each absent parent’s obligation to pay child support; cooperate with other states in establishing and enforcing child support obligations; collect and disburse support payments through the State disbursement unit established under § 10–108.7 of this subtitle; and use established legal processes to enforce court orders to pay support. Except in a county that has a local support enforcement office, the Administration is the agency that is responsible for support enforcement in all cases where a court orders an obligor to make support payments to a public agency: as the payee; or as collection agent for the payee. In this subsection, “notice of arrearage” means a written notice provided by the Administration: to an obligor who is in arrears in making child support payments; and relating to the arrearage. If the Administration sends a notice of arrearage within the first 120 days that the obligor is in arrears in making child support payments, the Administration shall include notice that continued arrearage may result in revocation or denial of a license under § 10-119.3 of this subtitle.

In this section, “consumer reporting agency” means any person or entity that, for monetary fees or dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer credit reports to third parties. If a child support obligation owed by an obligor and enforced by the Administration or a local support enforcement office becomes 60 days or more in arrears, the Administration shall make available, upon request in a format acceptable to the consumer reporting agency and the Administration, information regarding the arrears to all consumer reporting agencies that operate in the State. The Administration shall: designate one or more persons to receive and process requests from the consumer reporting agencies regarding the reverification of information; and respond to requests made by the consumer reporting agencies in a timely manner. Before supplying any information to a consumer reporting agency under this section, the Administration shall: send written notice of the proposed action to the obligor including the obligor’s right to contest the accuracy of the reported arrearage; and give the obligor a reasonable opportunity to contest the accuracy of the information. The obligor may appeal a decision of the Administration to provide the information regarding arrears to consumer reporting agencies in accordance with Title 10 of the State Government Article. The Secretary of Human Services shall adopt rules and regulations to implement the provisions of this section. Except as provided in paragraph (2) of this subsection, a consumer reporting agency that receives information regarding child support arrears under this section shall comply with the provisions of Title 14, Subtitle 12 of the Commercial Law Article. If the Administration finds that it has supplied erroneous information concerning arrears owed by an obligor to a consumer reporting agency: the Administration shall notify the consumer reporting agency; and the consumer reporting agency shall remove any information concerning the erroneous arrears from the obligor’s credit file.

Except as otherwise provided in this subtitle, in this section and in §§ 10-108.3 and 10-108.4 of this subtitle, the following words have the meanings indicated. “Account” means: any funds from a demand deposit account, checking account, negotiable order of withdrawal account, savings account, time deposit account, money market mutual fund account, or certificate of deposit account; any funds paid towards the purchase of shares or other interest in a financial institution, as defined in paragraph (4)(ii) and (iii) of this subsection; and any funds or property held by a financial institution, as defined in paragraph (4)(iv) of this subsection. “Account” does not include: an account or portion of an account to which an obligor does not have access due to the pledge of the funds as security for a loan or other obligation; funds or property deposited to an account after the time that the financial institution initially attaches the account; an account or portion of an account to which the financial institution has a present right to exercise a right of setoff; an account or portion of an account that has an account holder of interest named as an owner on the account; or an account or portion of an account to which the obligor does not have an unconditional right of access. “Account holder of interest” means any person, other than the obligor, who asserts an ownership interest in an account. “Financial institution” means: a depository institution, as defined in the Federal Deposit Insurance Act at 12 U.S.C. § 1813(c); an institution-affiliated party, as defined in the Federal Deposit Insurance Act at 12 U.S.C. § 1813(u); a federal or state credit union, as defined in the Federal Credit Union Act at 12 U.S.C. § 1752; a State credit union regulated under Title 6 of the Financial Institutions Article; an institution-affiliated party, as defined in the Federal Credit Union Act at 12 U.S.C. § 1786(r); or a benefit association, insurance company, safe deposit company, money-market mutual fund, or similar entity doing business in the State that holds property or maintains accounts reflecting property belonging to others. For purposes of subsection (a)(4)(v) of this section, any reference to “insured credit union” at 12 U.S.C. § 1786(r) shall be construed to include a credit union insured in accordance with § 6-701(a)(2) of the Financial Institutions Article. To carry out the purposes of this section, the Administration may request from any financial institution information and assistance to enable the Administration to enforce the liability of a parent to support a child of the parent. The Administration may request not more than four times a year from a financial institution the information set forth in subsection (e)(2) of this section concerning any obligor in arrears in paying child support through a support enforcement agency. A request for information by the Administration under paragraph (1) of this subsection shall: contain: the full name of the obligor and any other names known to be used by the obligor; and the Social Security number or other taxpayer identification number of the obligor; and be transmitted to the financial institution in an electronic format unless the financial institution specifically asks the Administration to submit the request in writing. Within 30 days after a financial institution receives a request for information under subsection (d) of this section, the financial institution shall: notify the Administration that the financial institution submits reports indirectly through the Federal Parent Locator Service under 42 U.S.C. § 666(a)(17); or with respect to each obligor whose name the Administration submitted to the financial institution and who maintains an account with the financial institution, submit a report to the Administration. The report described in paragraph (1)(ii) of this subsection shall contain, to the extent reflected in the records of the financial institution: the full name of the obligor; the address of the obligor; the Social Security number or other taxpayer identification number of the obligor; any other identifying information needed to assure positive identification of the obligor; and for each account of the obligor, the obligor’s account number and balance. A report submitted under paragraph (1)(ii) of this subsection shall be provided to the Administration in machine readable form. The Administration shall pay the financial institution a reasonable fee, not to exceed the actual costs incurred by the financial institution to comply with the requirements of this section and § 10-108.3 of this subtitle including costs for: compiling and providing reports to the Administration; compiling and providing reports through the Federal Parent Locator Service, but in such a case the actual costs of the financial institution shall be based on a percentage of the financial institution’s total actual cost, which percentage shall be determined by dividing the total number of accounts maintained by the financial institution in Maryland by the total number of accounts maintained by the financial institution for all jurisdictions included in the report; and necessary upgrades to existing computer, software, or other data compilation systems that are directly related to compliance with the requirements of this section and § 10-108.3 of this subtitle. The Administration may institute civil proceedings to enforce this section. A financial institution that complies with a request from the Administration by notifying the Administration or submitting a report to the Administration in accordance with subsection (e) of this section is not liable under State law to any person for any: disclosure of information to the Administration under this section; or other action taken in good faith to comply with the requirements of this section. An institution-affiliated party, as defined in subsection (a)(4)(ii) and (v) of this section, is not required to provide information and assistance under this section if the financial institution with which the party is affiliated has otherwise provided the required information or assistance.

In this section and in § 10-108.4 of this subtitle, “financial institution” means: a depository institution, as defined in the Federal Deposit Insurance Act at 12 U.S.C. § 1813(c); a federal or state credit union, as defined in the Federal Credit Union Act at 12 U.S.C. § 1752; a State credit union regulated under Title 6 of the Financial Institutions Article; or a benefit association, insurance company, safe deposit company, money market mutual fund, or similar entity doing business in the State that holds property or maintains accounts reflecting property belonging to others. In this section and in § 10-108.4 of this subtitle, “financial institution” does not include an institution-affiliated party, as defined in § 10-108.2(a)(4)(ii) and (v) of this subtitle. If an obligor identified in a report submitted under § 10-108.2 of this subtitle or in a report made to the Federal Parent Locator Service under 42 U.S.C. § 666(a)(17) is $500 or more in arrears of a child support obligation and has not paid child support for more than 60 days, the Administration may institute an action to attach and seize the amount of the arrearage in one or more of the accounts of the obligor with a financial institution to satisfy the amount of arrearage owed by the obligor. Before attaching and seizing the obligor’s accounts, the Administration shall send a notice to the obligor at the obligor’s last known address advising the obligor of the enforcement actions that may be taken, including that the obligor’s accounts may be subject to garnishment for payment of a child support arrearage. If the Administration institutes an action against an obligor under subsection (b) of this section, the Administration shall send a notice to the financial institution in which one or more of the obligor’s accounts are located, by certified mail, return receipt requested, or by other method acceptable to the financial institution, at the address designated for this purpose by the financial institution or, if no address has been designated, to the principal office of the financial institution. The notice shall contain the following information, to the extent known by the Administration: the address of the Administration; the telephone number, address, and name of a contact person at the Administration; the name and Social Security number or other taxpayer identification number of the obligor; the address of the obligor; for each account of the obligor, the obligor’s account number and known balance with the financial institution; the amount of arrearage that the financial institution shall seize and attach from one or more of the accounts of the obligor; and a statement instructing the financial institution to immediately attach and seize the amount of arrearage stated in item (vi) of this paragraph from one or more of the accounts of the obligor and, upon subsequent notice by the Administration, to forward the amount to the Administration. On receipt of the notice under subsection (c) of this section, the financial institution shall promptly seize and attach from one or more of the accounts identified in the Administration’s notice to the financial institution an aggregate amount equal to the lesser of the amounts in all accounts or the amount stated in the notice. Not later than 30 days after the financial institution receives the notice directing it to seize and attach accounts of the obligor, the financial institution shall send notice to the Administration by regular mail specifying the aggregate amount held under this subsection. If an account that has been seized and attached is maintained by the obligor with one or more account holders of interest as reflected on the records of the financial institution, the financial institution’s notice to the Administration shall state that fact and shall provide, to the extent reflected in the financial institution’s records, the name and address of the other person or persons. The financial institution may assess a fee against the accounts or the obligor, in addition to the amount identified in the notice under subsection (c) of this section. In the case of insufficient funds to cover both the fee and the amount identified in the notice under subsection (c) of this section, the financial institution may first deduct and retain the fee from the amount seized and attached as provided in this section. The financial institution may not be held liable to any person, including the Administration, the obligor, or any person named on the account, for wrongful dishonor or for any other claim relating to the seizure and attachment of the account or other actions taken in compliance with this section. Within 2 days after the Administration has received the return receipt from the notice sent to the financial institution under subsection (c) of this section, the Administration shall promptly send a notice to the obligor, by regular mail, to the obligor’s last known address, or if the home address is not known, to the place of last known employment. The notice shall contain the following information, to the extent known by the Administration: the address of the Administration; the telephone number, address, and name of a contact person at the Administration; the name and Social Security number or other taxpayer identification number of the obligor; the address of the obligor; for each account of the obligor, the obligor’s account number and known balances with the financial institution; the total amount of the arrearage owed by the obligor; the date the notice is being sent; a statement informing the obligor that the Administration has directed the financial institution to seize and attach the amount of the arrearage owed by the obligor from one or more of the accounts of the obligor and, upon subsequent notice by the Administration, to forward the amount to the Administration; and a statement informing the obligor that, unless a timely challenge is made to the Administration by the obligor or an account holder of interest under subsection (h) of this section, the Administration shall notify the financial institution to forward the amount seized and attached by the financial institution to the Administration. If a timely challenge is not made by the obligor or an account holder of interest under subsection (h) of this section, the Administration shall send a notice to the financial institution, in the manner specified in subsection (c) of this section, directing the institution to forward the amount seized and attached by the financial institution to the Administration. The Administration shall apply the amount seized and forwarded by the financial institution to the obligor’s child support arrears. If the obligor has more than one child support case with arrears, the Administration shall allocate the amount received among one or more of the obligor’s cases, as determined appropriate by the Administration. An obligor or an account holder of interest may challenge the actions of the Administration under this section by: filing a request for an investigation with the Administration; or filing a motion with the circuit court. A challenge under paragraph (1)(i) of this subsection shall: be in writing; be received by the Administration within 30 days from the date of the notice under subsection (e) of this section; be sent to the contact person identified in the notice sent to the obligor under subsection (e) of this section; and specify, in detail, the reasons for the challenge. An obligor or account holder of interest may not challenge the actions of the Administration on issues related to visitation, custody, or other matters not related to an account. An obligor or an account holder of interest may challenge the actions of the Administration based on an exemption in § 11-504 or § 11-603 of the Courts Article or for any other good cause. Upon receipt of a challenge under subsection (h) of this section, the Administration shall review the challenge in accordance with this subsection. The Administration shall release or reduce the amount seized and attached by the financial institution for a mistake of fact, including: a mistake in the identity of the obligor; a mistake in the ownership of an account; a mistake in the contents of an account; a mistake in the amount of arrearage due; or any other good cause. The Administration shall release or reduce the amount seized and attached by the financial institution if the account is exempt under § 11-504 or § 11-603 of the Courts Article or for any other good cause. The Administration shall send a notice to the financial institution, in the manner specified in subsection (c) of this section, directing the financial institution to release the amount seized and attached by the financial institution if the Administration determines that a mistake of fact has occurred, the account is exempt under § 11-504 or § 11-603 of the Courts Article, or other good cause exists. The Administration shall send a notice to the financial institution, in the manner specified in subsection (c) of this section, directing the financial institution to reduce the amount seized and attached to the revised amount stated and to release the excess amount if the Administration determines that: the amount owed by the obligor is less than the amount originally indicated on the notice under subsection (b) of this section; the obligor does not have an ownership interest in one or more of the accounts seized and attached or a portion thereof; or the account or a portion of the account is exempt under § 11-504 or § 11-603 of the Courts Article or other good cause exists. The Administration shall send by regular mail a notice of its findings, including a finding of no mistake of fact, to the obligor and any other challenging party. The notice shall inform the obligor or the challenging party of the right to appeal the decision of the Administration to the Office of Administrative Hearings or to the circuit court. If no timely appeal is filed, the Administration shall send a notice to the financial institution, in the manner specified in subsection (c) of this section, directing the financial institution to forward the amount specified in the notice, including any revised amount under subsection (i)(5) of this section, to the Administration. An appeal to the Office of Administrative Hearings authorized under subsection (j) of this section shall be conducted in accordance with Title 10, Subtitle 2 of the State Government Article. An appeal to the Office of Administrative Hearings shall be: in writing; and received by the Office of Administrative Hearings within 30 days after the notice is sent to the obligor or other challenging party under subsection (j) of this section. After the completion of an appeal to the Office of Administrative Hearings authorized under subsection (j) of this section, the Administration shall: send a notice to the financial institution, in the manner specified in subsection (c) of this section, directing the financial institution to release the amount seized and attached by the financial institution if the Office of Administrative Hearings finds that: there is a mistake of identity; the obligor does not have an ownership interest in the contents of any account held; or there is no arrearage; send a notice to the financial institution, in the manner specified in subsection (c) of this section, directing the financial institution to release the attachment on any amount in excess of the revised amount stated and that the revised amount stated be forwarded to the Administration if the Office of Administrative Hearings finds that: the obligor is delinquent, but the amount of the arrearage is less than the amount indicated in the notice under subsection (c) of this section or in a subsequent notice under subsection (i)(5) of this section; or the obligor does not have ownership interest in one or more of the accounts seized and attached or a portion of the accounts; or send a notice to the financial institution, in the manner specified in subsection (c) of this section, directing the financial institution to transfer the amounts seized and attached to the Administration if the Office of Administrative Hearings upholds the determination of the Administration. A challenging party may withdraw an administrative challenge or appeal by submitting a notice of the withdrawal to the person identified as the contact person for the Administration in the notice under subsection (e) of this section, or to the Office of Administrative Hearings. The Administration may withdraw the notice to attach accounts by sending notice to the financial institution, in the manner specified in subsection (c) of this section, directing the financial institution to release the attachment on the account. If a determination is made by the Administration or by the Office of Administrative Hearings that the account or accounts of the obligor should not have been held, the Administration shall notify the financial institution, in the manner specified in subsection (c) of this section, to release the amount seized and attached by the financial institution. A financial institution that complies with a request or notice from the Administration made under this section is not liable under State law to any person for: any disclosure of information to the Administration under this section; seizing and attaching any amounts from an account, sending any amount seized and attached by the financial institution to the Administration, or releasing all or a part of the amount seized and attached by the financial institution; or any other action taken in good faith to comply with the requirements of this section. An institution-affiliated party, as defined in § 10-108.2(a)(4)(ii) and (v) of this subtitle, is immune from any civil liability or criminal penalty for any action taken under this section. Notwithstanding any other statutory provisions or rules of court that provide for the execution, attachment, garnishment, or levy against an account, and subject to paragraph (2) of this subsection, the Administration may utilize the procedures established in this section exclusively to collect delinquent child support. This section may not be construed to prohibit the Administration from collecting delinquent child support in any other manner authorized by law.

If the Administration institutes an action under § 10-108.3(b) of this subtitle and no obligor has any ownership interest in a seized account at the time the Administration institutes the action, the Administration shall reimburse the account holders of interest for fees incurred as a result of instituting the action, including: fees assessed by the financial institution as a result of the Administration’s action; fees assessed by the financial institution for insufficient funds; fees assessed by merchants for dishonored checks; and reasonable attorney’s fees incurred by the account holders of interest related to an administrative or judicial review of the Administration’s decision to institute the action. An account holder of interest who wishes to request reimbursement under this section shall file a written request within 60 days after the account is seized. The request shall include copies of the notices or other proof of the assessment of fees for which reimbursement is sought. The Administration is not required to reimburse an account holder of interest for fees incurred if: the account holder of interest fails to make a request for reimbursement within 60 days after the account was seized; the account holder of interest fails to provide proof of the assessment of fees; or the fees were incurred as a result of a debit made to the account after the account holder of interest had actual notice of the account seizure. This section does not apply to fees incurred as a result of a judicial garnishment. A financial institution has no obligation to reimburse fees assessed as a result of the Administration instituting an action under § 10-108.3 of this subtitle or as otherwise permitted by law or authorized by contract.

In any case in which a court has ordered an obligor to send support payments directly to an obligee, the Administration may direct an obligor to forward any support payments through a support enforcement agency if the Administration has: sent a notice to the obligor directing the obligor to send support payments through a support enforcement agency; advised the obligee that it is issuing a notice to change payees under this section; and filed a notice with the court that the Administration is directing the obligor to change payees. When an obligor receives notice to change payees under subsection (a) of this section, the obligor shall forward all future support payments to the support enforcement agency designated in the notice.

In order to establish, modify, or enforce a duty of support, the Administration may issue subpoenas to compel the production of documents and other tangible items. A subpoena issued under subsection (a) of this section shall: specify the name and address of the person to be subpoenaed; describe the items to be produced with particularity; and include a return date for the subpoena. The Administration may serve a subpoena by: hand delivery; or certified mail. If a person fails to comply with a subpoena issued by the Administration, the Administration may: reissue the subpoena; exercise the Administration’s authority under § 10-119.3 of this subtitle to suspend any license held by the person; or apply, upon affidavit, to any judge of a circuit court for an order requiring the person to obey the subpoena. If a person knowingly fails or refuses to obey a court order to comply with a subpoena issued under this section, the court may compel compliance with the administrative subpoena in any manner available to the court to enforce its own order or subpoena.

The Administration shall establish a State disbursement unit for collection and disbursement of support payments in any case in which: an assignment is made under § 5–312(b)(2) of the Human Services Article; an obligee files an application and pays a fee for child support services as required by the Administration; or an employer is required to send payments to a support enforcement agency.

The Administration shall approve for child support services any individual who files an application and pays a fee for child support services as required by the Administration.

The Administration may: charge an initial application fee of not more than $ 25 for support services; deduct from the child support payment to defray the cost of providing support enforcement services under: the Income Tax Refund Intercept Program under this subtitle; and the Federal Treasury Offset Program; collect fees from the obligor to defray the costs of providing support enforcement services; and deduct from child support payments an annual collection fee in an amount not exceeding the amount authorized under 42 U.S.C. § 654(6)(b)(ii) for cases in which the family never received temporary cash assistance and has received at least $ 3,500 in child support payments during the federal fiscal year. Except as provided in subsection (a) of this section, the Administration may not: collect fees from the child support obligee; or deduct fees from the child support payment.

The Administration may make a cooperative agreement with a private or public agency, a circuit court, an institution, or a law enforcement official as to: establishing paternity; establishing liability for support; collecting support; or enforcing a court order to pay support. A cooperative agreement made under this section may include arrangements for reimbursement for expenditures incurred that are reimbursable under federal regulations that relate to federal financial participation in the operation of a support enforcement program.

Subject to the best interest of the child, if the Administration considers it to be in the best interest of this State in a case in which an assignment has been made under § 5–312(b)(2) of the Human Services Article, the Administration may accept in full settlement of an arrearage in child support payments an amount that is less than the total arrearage. On request of the Administration, a court may approve by order an amount that is less than the total arrearage as full settlement of the arrearage. In a case in which an assignment has been made under § 5–312(b)(2) of the Human Services Article, there is a presumption that it is in the best interest of this State for the Administration to accept in full settlement of an arrearage in child support payments an amount that is less than the total arrearage if: the obligor, the individual who has made an assignment under § 5–312(b)(2) of the Human Services Article, and the child who is the subject of the support order have resided together for at least the 12 months immediately preceding a request for settlement under this section; or the obligor and the child who is the subject of the support order have resided together for at least the 12 months immediately preceding a request for settlement under this section, and the individual who has made an assignment under § 5–312(b)(2) of the Human Services Article is deceased, incapacitated, or otherwise unavailable to reside with the obligor and the child; the obligor has been supporting the child for at least the 12 months immediately preceding a request for settlement under this section; and the gross income of the obligor is less than 225 percent of the federal poverty level, as defined by the United States Department of Health and Human Services. For purposes of paragraph (1)(i)2 of this subsection, an individual who has made an assignment under § 5–312(b)(2) of the Human Services Article may not be considered incapacitated or otherwise unavailable due solely to a change in legal or physical custody of the child. If the Administration does not accept in full settlement of an arrearage in child support payments an amount that is less than the total arrearage under this subsection, the Administration shall notify the obligor of the decision and of the obligor’s right to appeal the decision to the Office of Administrative Hearings. An appeal under this subsection shall be conducted in accordance with Title 10, Subtitle 2 of the State Government Article. The Secretary of Human Services, in cooperation with the Office of Administrative Hearings, may adopt regulations to implement this section.

In this section, “Program” means the Child Support Payment Incentive Program. By June 1, 2008, the Administration shall develop a statewide Child Support Payment Incentive Program to encourage payment of child support in cases in which an assignment has been made under § 5–312(b)(2) of the Human Services Article by entering into agreements with child support obligors in exchange for reductions in the amount of arrearages as authorized under § 10–112 of this subtitle. The Administration shall develop an electronic application process for participation in the Program. To participate in the Program, the obligor’s income shall meet the criteria described in § 10–112(b)(1)(iii) of this subtitle. For purposes of determining the applicable federal poverty level for a Program applicant, the obligor’s household shall include the children for whom the obligor is required to pay child support under a child support order that is the subject of the application to the Program. In determining whether to authorize an obligor to participate in the Program, the Administration shall consider the following factors: whether the obligor has a current ability to pay; whether the reduction of arrearages will encourage the obligor’s economic stability; and whether the agreement serves the best interests of the children whom the obligor is required to support. If any of the factors specified in subparagraph (i) of this paragraph are met, there is a presumption that it is in the best interest of the State to authorize an obligor to participate in the Program. Except as provided under paragraph (3) of this subsection, under the Program, the Administration shall agree to reduce the arrearages in accordance with the following schedule: after 12 months of uninterrupted court–ordered payments, the arrearages shall be reduced by 50% of the amount of arrearages owed before the agreement; and after 24 months of uninterrupted court–ordered payments, the arrearages balance shall be reduced to zero in full settlement of the arrearages. In determining the period of uninterrupted payments made under paragraph (1) of this subsection, the Administration shall include any uninterrupted court–ordered payments made immediately before the obligor’s participation in the Program. The Administration may develop an alternative schedule for obligors who are employed seasonally. The Administration shall distribute any child support arrearages received under this section in accordance with federal law. Except as provided in paragraph (2) of this subsection, for the duration of an agreement under subsection (d) of this section, all child support enforcement actions shall be suspended, unless the suspension would be in conflict with federal law. For the duration of an agreement under subsection (d) of this section, any earnings withholding shall continue in an amount consistent with the agreement. When the Administration enters into a Program agreement with an obligor, the Administration shall file a copy of the agreement with the court within 30 days after the agreement is executed. If an obligor satisfies the requirements for a reduction in arrearages under the schedule specified in subsection (d) of this section, the Administration shall: file a notice of reduction of arrearages with the court; and provide a copy of the notice to the obligor that reflects the adjusted amount of any arrearages that the obligor owes. A Program agreement is effective without the necessity of judicial approval. An agreement under this section shall be terminated if the obligor fails to make payments equal to two times the monthly support obligation amount. An obligor who has been terminated from a Program agreement more than two times is not eligible for future participation in the Program. The Administration shall develop an application form for obligors to request participation in the Program. Within 60 days after receipt of a request from an obligor, the Administration shall provide a written decision to the obligor. If the Administration does not authorize participation of an obligor in the Program, the Administration shall notify the obligor of the decision and of the obligor’s right to appeal the decision to the Office of Administrative Hearings. An appeal under this subsection shall be conducted in accordance with Title 10, Subtitle 2 of the State Government Article. If an unemployed obligor applies to participate in the Program, the Administration shall give the obligor a list of referrals to programs that prepare individuals for entry into the workforce. If an obligor becomes unemployed through no fault of the obligor, the Administration: shall give the obligor a list of referrals for securing reemployment; and for up to 6 months of unemployment, may not penalize the obligor for payments missed due to unemployment and on reemployment, uninterrupted payments shall be added to the payments made before the obligor’s unemployment for purposes of determining the period of uninterrupted payments under subsection (d)(1) of this section. The Administration and each local support enforcement office shall jointly develop and continue to update a public awareness campaign to publicize statewide the availability of the Program and the manner of applying to participate in the Program, with a focus on those jurisdictions with a low rate of participation in the Program. The Administration shall develop, maintain, and continuously update training and awareness materials for use within the Administration and local support enforcement offices to ensure that staff members are aware of the Program and its benefits. The Secretary of Human Services may adopt regulations to implement this section.

Each year, the Administration may certify to the State Comptroller any obligor who is in arrears of support payments amounting to more than $150 under the court order, if: the Administration has accepted an assignment of support under § 5–312(b)(2) of the Human Services Article; or the recipient of support payments has filed an application for support enforcement services with the Administration. The Administration shall notify the obligor that: a certification has been made by the Administration; and the obligor may ask the Administration to investigate the arrearage. The certification shall include, if known: the full name of the obligor, and any other names known to be used by the obligor; the address and the Social Security number of the obligor; and the amount of the arrearage. On receipt of notice of certification, any obligor who disputes the existence or amount of the arrearage may ask the Administration to investigate the arrearage. On receipt of a request for investigation from the obligor, the Administration shall: conduct an investigation as to the accuracy of the reported arrearage; and if the Administration finds that there is an error, correct the amount of the reported arrearage or withdraw the certification. The State Comptroller may not question the certification made by the Administration. The State Comptroller shall: withhold and pay to the Administration any income tax refund due to the obligor, in an amount not more than the amount of the arrearage; pay to the obligor any part of the income tax refund over the amount of the arrearage; and notify the obligor of: the amount paid to the Administration; and the rights of the obligor under subsection (g) of this section. On receipt of notice of intercept from the State Comptroller, any obligor who disputes the existence or amount of the arrearage may appeal to the Administration. If the Administration finds that an excessive amount was withheld from the obligor’s income tax refund or State lottery prize, the Administration promptly shall pay to the taxpayer the excess amount withheld. The State Comptroller shall honor refund interception requests in the following order: a refund interception request to collect an unpaid State, county, or municipal tax; a refund interception request under this Part II of this subtitle for arrears of support payments; a refund interception request for converted funds under § 15–122.2 of the Health – General Article; and any other refund interception request. The Secretary of Human Services and the State Comptroller may adopt rules and regulations to carry out this section.

In this section the following words have the meanings indicated. “Agency” means the State Lottery and Gaming Control Agency. “Video lottery facility” has the meaning stated in § 9–1A–01 of the State Government Article. “Video lottery operator” has the meaning stated in § 9–1A–01 of the State Government Article. The Administration may certify to the Agency or a video lottery operator the name of any obligor who is in arrears in the amount of $150 or more if: the Administration has accepted an assignment of support under § 5–312(b)(2) of the Human Services Article; or the recipient of support payments has filed an application for support enforcement services with the Administration. The certification shall contain: the full name of the obligor, and any other names known to be used by the obligor; the Social Security number of the obligor; and the amount of the arrearage. If an obligor who has been certified as an obligor wins a lottery prize to be paid by check directly by the Agency, the Agency shall send a notice to the obligor that: the obligor has won a prize to be paid by check directly by the State Lottery and Gaming Control Agency; the State Lottery and Gaming Control Agency has received certification from the Child Support Administration of the obligor’s child support arrearage in the amount specified; State law requires the State Lottery and Gaming Control Agency to withhold the prize and to pay it towards the obligor’s support arrearage; the obligor has 15 days to appeal to the Administration if the obligor disputes the existence or the amount of the arrearage; and on interception of the prize, the State Lottery and Gaming Control Agency will transfer the prize or the part of the prize that equals the obligor’s child support arrearage to the Administration. If an obligor who owes child support and has been certified as an obligor wins a prize at a video lottery facility requiring the issuance of Internal Revenue Service form W–2G or a substantially equivalent form by a video lottery operator, the video lottery operator shall notify the obligor that: the obligor has won a prize to be paid by cash or check directly by the video lottery operator; the video lottery operator has received certification from the Child Support Administration of the obligor’s child support arrearage in the amount specified; State law requires the video lottery operator to withhold the prize and to pay it towards the obligor’s child support arrearage; the obligor may appeal to the Administration if the obligor disputes the existence or the amount of the child support arrearage; and if an appeal is not filed within 15 days after the date of the notice, the video lottery operator will transfer the prize or the part of the prize that equals the obligor’s child support arrearage to the Administration. The Agency or the video lottery operator shall withhold and transfer all or part of the prize up to the amount of the arrearage to the Administration. The Agency and a video lottery operator shall honor interception requests in the following order: an interception request under this section; an interception request under § 11–618 of the Criminal Procedure Article; an interception request under § 3–307 of the State Finance and Procurement Article; and an interception request under § 3–308 of the State Finance and Procurement Article. On receipt of a notice from the Agency or video lottery operator, an obligor who disputes the existence or amount of the arrearage may appeal the transfer. If no appeal is filed within 15 days, the Administration may retain the withheld prize. If the obligor appeals the transfer, after a hearing by the Administration, the withheld prize shall be: paid to the obligor; paid in accordance with subsection (f)(2) of this section; or partly paid to the obligor and partly paid in accordance with subsection (f)(2) of this section. The Secretary of Human Services and the Director of the Agency may jointly adopt regulations to implement this section. A video lottery operator may not be held liable for an act or omission taken in good faith to comply substantially with the requirements of this section.

The Administration may certify to the State Comptroller any obligor who is in arrears under a child support order, if: the amount of arrears exceeds $150; and the Administration is providing services in the case under Title IV, Part D, of the federal Social Security Act. The Administration shall notify the obligor that: a certification has been made by the Administration; and the obligor has a right to request an investigation as provided under subsection (d) of this section. The certification shall include, if known: the full name of the obligor, and any other names known to be used by the obligor; the address and Social Security number of the obligor; and the amount of the arrearage. Within 30 days of the date of the notice of certification, an obligor who disputes the existence or amount of the arrearage may request that the Administration conduct an investigation of the arrearage. On receipt of a request for investigation from the obligor, the Administration shall conduct an investigation as to the existence or amount of the arrearage. On completion of the investigation, the Administration shall notify the obligor of the outcome of the investigation. If, after the investigation the Administration finds there is an error, the Administration shall correct the amount of the reported arrears, or, if appropriate, withdraw the certification. The State Comptroller shall: withhold the amount of the arrearage from: any payment due to the obligor; or any abandoned property delivered to the State Comptroller under Title 17 of the Commercial Law Article in which the obligor has an interest; forward the amount withheld to the Administration; and notify the obligor of: the amount paid to the Administration; and the right to appeal the intercept to the Office of Administrative Hearings as provided in subsection (g) of this section. On receipt of the intercepted payment, the Administration shall: retain any part of the payment that does not exceed the amount of arrearage owed at the time the payment was received; and pay to the obligor any part of the payment that exceeds the amount of arrearage owed at the time the payment was received. Within 30 days of the date of the notice of intercept from the State Comptroller, an obligor who disputes the existence or amount of the arrearage may appeal to the Office of Administrative Hearings. An appeal to the Office of Administrative Hearings shall be conducted in accordance with Title 10, Subtitle 2 of the State Government Article. The Secretary of Human Services and the State Comptroller may adopt regulations to carry out this section.

The Secretary of Human Services shall: adopt rules and regulations for the collection of support; adopt standards for staffing, record keeping, reporting, intergovernmental cooperation, and other management operations that are necessary to proper and efficient collection of support; delegate any responsibility for support enforcement to a local department, for as long as: the local government asks that responsibility be delegated to the local department; the Secretary finds that the local department is capable of carrying out the responsibility; and a delegation of that responsibility is consistent with guidelines of the Department of Human Services; delegate any responsibility for support enforcement to the clerk of a circuit court, for as long as: the local government and the clerk, with the approval of the Chief Justice of the Supreme Court of Maryland, ask that responsibility be delegated to the clerk; the Secretary finds that the clerk is capable of carrying out the responsibility; a delegation of that responsibility is consistent with guidelines of the Department of Human Services; and the Administration makes a cooperative agreement with the clerk that: includes arrangements for reimbursement for expenditures incurred by the clerk that are reimbursable under federal regulations that relate to federal financial participation in the operation of a support enforcement program; and provides that federal collection incentives that would be payable to the county if the county had a local support enforcement office shall be payable to the Fund established in § 10–106.1 of this subtitle; and adopt regulations establishing procedures for the periodic review and adjustment of child support orders being enforced by a support enforcement agency. The clerk of a circuit court, with the approval of the Chief Justice of the Supreme Court of Maryland, may: make a written agreement with the Secretary of Human Services and the Administration to provide support enforcement services pursuant to a delegation of responsibility under subsection (a) of this section; employ the personnel necessary to perform the support enforcement services, notwithstanding any other provisions of law, including any law on the practice of law by employees of a clerk; and include in the clerk’s annual budget request submitted to the Chief Justice of the Supreme Court of Maryland the projected costs of administering the support enforcement program that are not reimbursable under the agreement with the Secretary of Human Services and the Administration.

In this section, “legal proceeding” means: a civil action for child support; a paternity proceeding under Title 5, Subtitle 10 of this article; and a proceeding under Subtitle 3 of this title. In any support action in which the Administration is providing child support services under federal law, the Administration may initiate a legal proceeding to establish, modify, or enforce a duty of support. In a legal proceeding, the Administration shall be represented by: the Attorney General; the State’s Attorney, if the State’s Attorney has agreed to provide representation under subsection (g) of this section; or a qualified lawyer who is appointed by and subject to supervision and removal by the Attorney General. An attorney who initiates or participates in a legal proceeding under this section shall represent the Administration. Representation of the Administration by an attorney under this section: creates an attorney–client relationship between that attorney and the Administration; and does not create an attorney–client relationship between that attorney and any other person. The attorney representing the Administration in a legal proceeding under this section shall advise the person whom the Administration has approved for child support services that the attorney’s representation of the Administration does not create an attorney–client relationship between the attorney and that person. A State’s Attorney may make a written agreement with the Secretary of Human Services and the county to provide legal representation for a fiscal year. An agreement shall be made by September 1 of the year preceding the fiscal year for which representation will be provided. An agreement shall establish reasonable administrative and fiscal requirements for: providing and continuing representation; and reimbursement.

A local support enforcement office: shall be funded from local and federal resources; and may keep any surcharge that is assessed against the obligor to defray the costs of support collection. The Administration shall pay a county that has a local support enforcement office collection incentives pursuant to a methodology based on the performance of the county in accordance with regulations adopted by the Administration under subsection (d) of this section. The rules, regulations, and standards of a local support enforcement office control if they generally conform to those adopted by the Secretary of Human Services under § 10–114 of this subtitle. The Administration shall adopt any regulations necessary to carry out the provisions of this section.

A county or circuit court with a local support enforcement office may request that the responsibility for support enforcement be transferred to the Administration. A request for transfer of responsibility under this section must be made to the Department of Human Services by September 1 of the year preceding the fiscal year for which responsibility will be transferred. Any personnel of the local support enforcement office involved in a transfer under this section shall be in the State Personnel Management System and shall be placed in the position that is comparable to or most closely compares to their former position, without further examination or qualification. These employees shall be credited with the years of service with the jurisdiction for purposes of seniority, including the determination of leave accumulation and the determination of layoff rights under Title 11, Subtitle 2 of the State Personnel and Pensions Article, and shall remain members of the Employees’ Pension System of the State of Maryland. These employees shall receive no diminution in compensation or accumulated leave solely as a result of the transfer. The salary grade of these employees shall be determined using a salary based on the same hourly rate of salary of the employee at the time of transfer. Annual leave in excess of that which may be retained annually in the State Personnel Management System may be retained at the time of transfer if that accumulation was permitted by the former employer.

Subject to any federal law or program, the Administration and local support enforcement offices shall promote and serve the best interests of the child in carrying out their child support responsibilities under this subtitle.

In this section the following words have the meanings indicated. “License” has the meaning stated in § 11–128 of the Transportation Article. “Motor Vehicle Administration” means the Motor Vehicle Administration of the Department of Transportation. Subject to the provisions of subsection (c) of this section, the Administration may notify the Motor Vehicle Administration of an obligor with a noncommercial or commercial license who is 120 days or more out of compliance, with the most recent order of the court in making child support payments if: the Administration has accepted an assignment of support under § 5–312(b)(2) of the Human Services Article; or the recipient of support payments has filed an application for support enforcement services with the Administration. Upon notification by the Administration under this subsection, the Motor Vehicle Administration: shall suspend the obligor’s license or privilege to drive in the State; and may issue a work–restricted license or work–restricted privilege to drive in the State in accordance with § 16–203 of the Transportation Article. Before supplying any information to the Motor Vehicle Administration under this section, the Administration shall: send written notice of the proposed action to the obligor, including notice of the obligor’s right to request an investigation on any of the following grounds: the information regarding the reported arrearage is inaccurate; suspension of the obligor’s license or privilege to drive would be an impediment to the obligor’s current or potential employment; or suspension of the obligor’s license or privilege to drive would place an undue hardship on the obligor because of the obligor’s: documented disability resulting in a verified inability to work; or inability to comply with the court order; and give the obligor a reasonable opportunity to request an investigation of the proposed action of the Administration. Upon receipt of a request for investigation from the obligor, the Administration shall conduct an investigation to determine if any of the grounds under paragraph (1)(i) of this subsection exist. The Administration shall: send a copy of the obligor’s request for an investigation to the obligee by first–class mail; give the obligee a reasonable opportunity to respond; and consider the obligee’s response. Upon completion of the investigation, the Administration shall notify the obligor of the results of the investigation and the obligor’s right to appeal to the Office of Administrative Hearings. An appeal under this section shall be conducted in accordance with Title 10, Subtitle 2 of the State Government Article. An appeal shall be made in writing and shall be received by the Office of Administrative Hearings within 20 days after the notice to the obligor of the results of the investigation. If, after the investigation or appeal to the Office of Administrative Hearings, the Administration finds that one of the grounds under paragraph (1)(i) of this subsection exists, the Administration may not send any information about the obligor to the Motor Vehicle Administration. The Administration may not send any information about an obligor to the Motor Vehicle Administration if: the Administration reaches an agreement with the obligor regarding a scheduled payment of the obligor’s child support arrearage or a court issues an order for a scheduled payment of the child support arrearage; and the obligor is complying with the agreement or court order. If, after information about an obligor is supplied to the Motor Vehicle Administration, the obligor’s arrearage is paid in full, the obligor has demonstrated good faith by paying the ordered amount of support for 6 consecutive months, the obligor is a participant in full compliance in an employment program approved by the Administration, or the Administration finds that one of the grounds under subsection (c)(1)(i) of this section exists, the Administration shall notify the Motor Vehicle Administration to reinstate the obligor’s license or privilege to drive. The Administration may request that the Motor Vehicle Administration expunge a record of a suspension of a license or privilege to drive for failure to pay child support: for an obligor who is enrolled in and compliant with an employment program approved by the Administration; or if the information reported by the Administration that led to the suspension was inaccurate. The Secretary of Human Services, in cooperation with the Secretary of Transportation and the Office of Administrative Hearings, shall adopt regulations to implement this section. This section does not apply to an obligor whose individual income for the current year is not greater than 250% of the federal poverty guidelines unless the obligor was judicially determined at the time the most recent child support order was entered to be voluntarily impoverished under § 12–204 of this article. To determine the income of an obligor under this subsection, the Administration may consider: the income of the obligor at the time the most recent child support order was entered; or information on the obligor’s income provided by the obligor or an employer of the obligor.

In this section the following words have the meanings indicated. “License” means any license, certificate, registration, permit, or other authorization that: is issued by a licensing authority; is subject to suspension, revocation, forfeiture, or termination by a licensing authority; and is necessary for an individual to practice or engage in: a particular business, occupation, or profession; or recreational hunting or fishing. “Licensing authority” means a department, unit of a department, commission, board, office, or court of the State. “Licensing authority” includes: the Maryland Department of Labor; the Maryland Department of Health; the Department of Human Services; the Department of Transportation; the Department of the Environment; the Comptroller of the Treasury; the Department of Agriculture; the Maryland Insurance Administration; the Public Service Commission; the Secretary of State; the State Department of Education; the Department of Natural Resources; the Office of the Attorney General; the clerks of the court that are authorized to issue a license or certificate for professional services or recreational uses; and the Supreme Court of Maryland. Except as provided in paragraphs (2) and (3) of this subsection, a licensing authority shall: require each applicant for a license to disclose the Social Security number of the applicant; and record the applicant’s Social Security number on the application. The Department of Natural Resources shall: require an applicant for a recreational hunting or fishing license to disclose only the last four digits of the Social Security number of the applicant instead of the full Social Security number; and record the applicant’s partial Social Security number on the application. Each health occupations board and the State Emergency Services Board shall: require each applicant for a license to: disclose the Social Security number or Individual Taxpayer Identification Number of the applicant; or provide alternative documentation as permitted by the Department of Health and Human Services under Section 466(a)(13) of the Social Security Act; and record the applicant’s Social Security number, Individual Taxpayer Identification Number, or alternative documentation provided under item (i) of this paragraph in the application file. To carry out its responsibility under State and federal law, the Administration may request from a licensing authority information concerning any obligor in arrears in paying child support through a support enforcement agency. A request for information by the Administration under paragraph (1) of this subsection: shall contain: the full name of the obligor; and the Social Security number or, as appropriate, the partial Social Security number of the obligor, if known; or the Individual Taxpayer Identification Number of the obligor, if known; and may be transmitted to a licensing authority using an electronic format. A request for information may not be made by the Administration to a licensing authority more frequently than four times in each calendar year except with respect to an obligor whom the Administration has reason to believe is licensed by, or has applied for a license from, the licensing authority. In addition to requests for information under this subsection, the Administration may request a licensing authority to periodically share its licensing database with the Administration. Upon receipt of a request for information under subsection (c) of this section, a licensing authority shall submit the following information to the Administration with respect to each obligor who is licensed by, or has applied for a license from, the licensing authority: the full name of the obligor; the address of the obligor, if known; if known: the Social Security number or, as appropriate, the partial Social Security number of the obligor; or the Individual Taxpayer Identification Number of the obligor; and a description of the license held by the obligor. The information may be transmitted to the Administration in an electronic format. Except as otherwise provided by law, any record compiled under this subsection shall be made available only to a person who has a right to the record in an official capacity. Except as provided in paragraph (3) of this subsection and subject to the provisions of subsection (f) of this section, the Administration may request a licensing authority to suspend or deny an individual’s license if: the individual is 120 days or more out of compliance with the most recent order; and the Administration has accepted an assignment of support under § 5–312(b)(2) of the Human Services Article; or the recipient of support payments has filed an application for support enforcement services with the Administration; or the individual has failed to comply with a subpoena issued by the Administration under § 10–108.6 of this subtitle. Except as provided in paragraph (3) of this subsection, upon notification by the Administration under this section, a licensing authority shall: suspend an individual’s license; or deny the license of an individual who is an applicant for a license from the licensing authority. This paragraph applies if the licensing authority is the Supreme Court of Maryland. If an individual meets the criteria specified in paragraph (1) of this subsection, the Administration may make a referral to the Attorney Grievance Commission for proceedings in accordance with the Maryland Rules governing attorney discipline. On recommendation of the Attorney Grievance Commission, the Supreme Court of Maryland may suspend an individual’s license or take other action against the individual as authorized by the Maryland Rules governing attorney discipline. The Supreme Court of Maryland may adopt rules to implement the provisions of this paragraph. At least 30 days before requesting a licensing authority to suspend or deny a license or at least 30 days before making a referral under subsection (e)(3) of this section, the Administration shall: send written notice of the proposed action to the individual whose license is subject to suspension under this section, including notice of the individual’s right to request an investigation; and give the individual a reasonable opportunity to contest the accuracy of the information. For a license necessary to practice or engage in a particular business, occupation, or profession, the notice shall include a statement that the obligor has the right to request an investigation on the following grounds: the reported arrearage is inaccurate; the suspension of the license would be an impediment to current or potential employment because the license is necessary for the primary source of income for the obligor; and the obligor has made good faith payments toward the child support obligation; or the suspension of the license would result in an undue hardship because: the obligor has a documented disability resulting in a verified inability to work; or the suspension of the license would result in the inability of the obligor to comply with the court order. Upon receipt of a request for investigation from an individual whose license is subject to suspension, the Administration shall conduct an investigation. Upon completion of the investigation, the Administration shall notify the individual of the result of the investigation and the individual’s right to appeal to the Office of Administrative Hearings. An appeal under this section shall be conducted in accordance with Title 10, Subtitle 2 of the State Government Article. An appeal shall be made in writing and shall be received by the Office of Administrative Hearings within 30 days after the notice to the individual whose license is subject to suspension of the results of the investigation. If, after the investigation or appeal to the Office of Administrative Hearings, the Administration finds that it erred in making a decision or that one of the grounds under paragraph (2) of this subsection exists, the Administration may not send a notification about an individual to a licensing authority or make a referral under subsection (e)(3) of this section. The Administration may not send a notification about an individual to a licensing authority or make a referral under subsection (e)(3) of this section if: with respect to an individual with a child support arrearage: the Administration reaches an agreement with the individual regarding a scheduled payment of the child support arrearage or a court issues an order for a scheduled payment of the child support arrearage; and the individual is complying with the agreement or court order; or with respect to an individual who failed to comply with a subpoena issued under § 10–108.5 of this subtitle, the individual has complied with the subpoena. Except as provided in paragraph (2) of this subsection, prior to the suspension or denial of a license under subsection (e) of this section, a licensing authority shall send written notice of the proposed action to the individual whose license is subject to suspension or denial, including notice of the individual’s right to contest the identity of the individual whose license or application is to be suspended or denied. If the licensing authority is the Supreme Court of Maryland, notice shall be as provided in the Maryland Rules governing attorney discipline. Except as provided in paragraph (2) of this subsection, an individual may appeal a decision of a licensing authority to suspend or deny the individual’s license in accordance with Title 10, Subtitle 2 of the State Government Article. At a hearing under this paragraph, the issue shall be limited to whether the Administration has mistaken the identity of the individual whose license has been suspended or denied. If the licensing authority is the Supreme Court of Maryland, an individual may appeal a decision in accordance with the Maryland Rules governing attorney discipline. The Administration shall notify the licensing authority to reinstate any license suspended or denied under this section within 10 days after the occurrence of any of the following events: the Administration receives a court order to reinstate the suspended license; with respect to an individual with a child support arrearage, the individual has: paid the support arrearage in full; demonstrated good faith by paying the ordered amount of support for 4 consecutive months; paid a lump sum equal to four times the ordered amount of monthly support; or cooperated with the Administration in entering into an enforceable wage withholding order with the maximum deduction permitted under federal law; or with respect to an individual whose license was suspended or denied because of a failure to comply with a subpoena issued under § 10–108.5 of this subtitle, the individual has complied with the subpoena. A licensing authority shall immediately reinstate any license suspended, or process an application for any license denied, under this section if: notified by the Administration that the license should be reinstated; and the individual otherwise qualifies for the license.

In this Part III of this subtitle the following words have the meanings indicated. “Earnings withholding notice” means a notice in a format prescribed by federal law issued by the Administration to an employer requiring the employer to deduct support payments from the earnings of an obligor. “Earnings withholding order” means an order in a format prescribed by federal law issued by a tribunal to an employer requiring the employer to deduct support payments from the earnings of an obligor. “Support” includes: child support; spousal support; nondifferentiated child and spousal support; and any medical support ordered by the court, including converted funds as defined in § 15–122.2 of the Health – General Article. “Tribunal” has the meaning stated in § 10–301(dd) of this title.

Any order under this Part III of this subtitle that is passed on or after July 1, 1985 shall constitute an immediate and continuing withholding order on all earnings of the obligor that are due on or after the date of the support order. Any order under this Part III of this subtitle that is passed before July 1, 1985 shall become an immediate and continuing withholding order on all earnings of the obligor that are due on or after the date of the withholding order on the filing by the recipient or support enforcement agency of: a motion for a withholding order on the earnings of the obligor; and a current support order. Notice of the filing of the motion and a statement that the support order constitutes an earnings withholding order subject to the conditions of this Part III of this subtitle shall be sent to the obligor by certified mail, return receipt requested and first–class mail, at the last known home address or, if the home address is unknown, the place of employment of the obligor. Any support order or modification of support order not subject to immediate withholding under § 10-123 of this subtitle, that is passed on or after July 1, 1985, and any notice and statement issued under subsection (b)(2) of this section shall include a statement that: if the obligor accumulates support payments arrears amounting to more than 30 days of support, the obligor shall be subject to earnings withholding; so long as the support order is in effect, the obligor is required to notify the court of: any change of address within 10 days after moving to a new address; or any change of employment within 10 days after receiving the first earnings from a new employer; and failure to comply with item (2) of this subsection will subject the obligor to a penalty not to exceed $250 and may result in the obligor’s not receiving notice of proceedings for earnings withholding.

The amount of the earnings withholding shall: be enough to pay the support and any arrearage included in the payments required by the support order; and include any arrearage accrued since the support order. When arrearages under subsection (a)(2) of this section are part of an earnings withholding order or earnings withholding notice, the total arrearage withheld shall be in one lump-sum payment or apportioned over a period of time. The amount of the arrearage withheld under subparagraph (i) of this paragraph shall be determined by the tribunal or, in a case in which the Administration is providing support services, by the Administration. The amount of arrears under subsection (a)(2) of this section apportioned to each payment shall be at least $1 but not more than 25% of the current support payment. If there is more than one earnings withholding order or earnings withholding notice against a single obligor, the Administration shall allocate amounts available for withholding, giving priority to current support, up to the limits imposed by the federal Consumer Credit Protection Act.

Except as otherwise provided for in this section and notwithstanding any other provision of this Part III, a court shall immediately authorize service of an earnings withholding order when: a support order or modification of support order is passed on or after April 9, 1991; a case is being enforced by a support enforcement agency; and the recipient or support enforcement agency requests service of an earnings withholding order; or the Maryland Department of Health requests service of an earnings withholding order for court ordered medical support. Except as provided in subsection (d) of this section, for all child support orders that are initially issued in the State on or after January 1, 1994, regardless of whether child support payments are in arrears, a court shall immediately authorize service of an earnings withholding order on the effective date of the order. When a court orders immediate service of an earnings withholding order on or after July 1, 1994, the court shall order payments through the State disbursement unit. A court may not authorize the immediate service of an earnings withholding order if: any party demonstrates, and the court finds, that there is good cause to not require immediate earnings withholding; or the court approves of the terms of a written agreement of the parties providing for an alternative method of payment. If the court authorizes the immediate service of an earnings withholding order, the court shall immediately cause a copy of the earnings withholding order to be served on any employer of the obligor.

Except as otherwise provided in this Part III, the Administration may serve an earnings withholding notice on an employer of an obligor without the need for any modification of the support order or any further action by a tribunal if: a tribunal has issued a support order; and the Administration is providing child support services under Title IV, Part D, of the Social Security Act; or an obligor requests the service of an earnings withholding notice. The Administration may serve an employer with an earnings withholding notice using an electronic format if the employer has entered into an agreement with the Administration to accept service of an earnings withholding notice in this manner. When the Administration serves an employer with an earnings withholding notice under this section, the Administration shall send to the obligor, by first-class mail, at the obligor’s last known home address and place of employment: a copy of the earnings withholding notice; a statement of the procedures under § 10-134 of this subtitle that the obligor must follow to terminate earnings withholding; a statement of the obligor’s right to contest the accuracy of the information provided in the earnings withholding notice by filing a motion for a stay of the earnings withholding notice in circuit court or requesting an investigation no later than 30 days after a copy of the withholding notice is mailed to the obligor under this section; and a statement of the amount of arrears apportioned to each payment that is to be included in the amount of earnings withheld under § 10-122 of this subtitle. The only issues that may be adjudicated at a hearing or contested in an investigation under subsection (c)(3) of this section are: whether an arrearage existed; the amount of the withholding or the amount of any arrearage; the identity of the obligor; or that the amount of the withholding notice exceeds the limits of the federal Consumer Credit Protection Act. If an obligor requests an investigation, the Administration shall: conduct an investigation within 15 days after the obligor’s request; and on completion of the investigation, notify the obligor of the results of the investigation and the obligor’s right to appeal the decision of the Administration to the Office of Administrative Hearings. An appeal under paragraph (1)(ii) of this subsection shall be conducted in accordance with Title 10, Subtitle 2 of the State Government Article.

Except as provided for in § 10-123 of this subtitle, the court may not cause a copy of the earnings withholding order to be served on any employer of the obligor until the court receives a request for service of the earnings withholding order under § 10-126 of this subtitle and the requirements of §§ 10-127 and 10-133 of this subtitle have been met.

If an obligor accrues support payment arrears amounting to more than 30 days of support, the recipient or the support enforcement agency may file a request for service of the earnings withholding order. The request shall: be under oath; state the last date or dates on which support payments were received, and the amount or amounts of the support payments; and state the amount of arrearage. The request may be filed on a form which shall be provided by the court. Any person who willfully makes a false representation in a request for service of an earnings withholding order under this section shall be subject to the penalties for perjury. When support payments are being made through the support enforcement agency, the agency shall file the request for service of the earnings withholding order.

When the court receives a request for service of the earnings withholding order under § 10-126 of this subtitle, the court shall send to the obligor, by certified mail, return receipt requested and first–class mail, at the home address or, if the home address is unknown, the place of employment last reported to the court: a copy of the earnings withholding order; a copy of the request for service of the earnings withholding order; a statement of the procedures under § 10-133 of this subtitle that the obligor must follow to contest the earnings withholding; the form permitted under § 10-133(b)(3) of this subtitle; a statement of the issues that may be adjudicated under § 10-133 of this subtitle; and notice that: the order will be served on the employer and will include arrears as alleged in the request for service of the earnings withholding order unless the obligor moves for a stay of service within 15 days of mailing the notice under this section; and the arrears accrued since the issuance of the support order will be apportioned according to the requirements of § 10-122 of this subtitle. If the obligor fails to move for a stay under § 10-133 of this subtitle, the court shall immediately cause a copy of the earnings withholding order to be served on the employer of the obligor.

An earnings withholding order or an earnings withholding notice sent to the obligor’s employer shall: be a separate document, and not include any other orders or pleadings; and include only the following information: the amount to be withheld from the obligor’s earnings including explanation of the application of the federal Consumer Credit Protection Act limits; that subject to further orders of the tribunal, the employer is required to withhold the stated amount on a regular and continuing basis commencing on the beginning of the next pay period after receipt of the earnings withholding order or the earnings withholding notice; that the employer may deduct and retain from the employee’s earnings an additional $2 for each deduction made under the earnings withholding order or earnings withholding notice; that the net amount withheld is to be sent promptly to the State disbursement unit; and any other information that the employer needs to comply with the earnings withholding order or earnings withholding notice. An earnings withholding order or earnings withholding notice is binding on each present and future employer of the obligor on whom a copy of the earnings withholding order or earnings withholding notice is served. Subject to federal law, an earnings withholding order or earnings withholding notice under this Part III of this subtitle has priority over any other lien or legal process. The copy of the earnings withholding order or earnings withholding notice served on the employer of the obligor shall contain a statement that upon willful violation of the earnings withholding order or earnings withholding notice the employer shall be subject to civil penalties.

On receipt of a copy of an earnings withholding order or earnings withholding notice an employer shall, beginning with the next pay period after receipt of the earnings withholding order or earnings withholding notice: deduct the amount of the withholding from the obligor’s earnings on a regular basis; and send the deducted net amount directly to the State disbursement unit within 7 days not including Saturday, Sunday, or a legal holiday after the day on which the earnings are paid to the obligor. An employer may deduct and retain from the obligor’s wages an additional $2 for each deduction made under the earnings withholding order or earnings withholding notice. An employer may not use the withholding as a basis for: reprisal against the obligor; dismissal of the obligor from employment; or refusal to hire or to promote the obligor. Subject to the provisions of § 10–131 of this subtitle: the recipient or the support enforcement agency may bring a civil action against an employer who willfully violates subsection (a) of this section; and an employer is liable for damages under this subsection in an amount equal to the amount of any withholding that the employer failed to deduct from the obligor’s earnings or failed to send within the time required under subsection (a) of this section. The employer’s liability under this subsection shall be in addition to any amounts paid directly or indirectly by the obligor.

Within 10 days after the employer receives notice of an obligor’s decision to terminate employment or within 10 days after the termination, whichever occurs earlier, the employer shall: notify the court and the support enforcement agency; and forward to the court any available information as to the obligor’s: Social Security number; home address; and new place of employment.

If the address of a recipient changes, the recipient, within 10 days after moving to the new address, shall send the change of address to: the court: by certified mail, return receipt requested; or by filing in person at the court and obtaining proof of filing; the obligor, at the obligor’s last known address, by first–class mail; and each employer who has been served with a copy of the earnings withholding order, by first–class mail; or if the support enforcement agency receives the support payments, the support enforcement agency: by certified mail, return receipt requested; if the agency’s website allows parents to update address information, by entering the new address on–line; by filing in person at the agency and obtaining proof of filing; or by telephone or electronic communication to the agency and obtaining proof of change. If, because of the failure of a recipient to give notice under this section, an employer or the support enforcement agency is unable for a 2-month period to deliver deductions under the earnings withholding order, the employer or agency: may not make further deductions; shall return each undeliverable payment to the obligor; and shall notify the court.

If the address or place of employment of the obligor changes, the obligor, within 10 days after moving to a new address or receiving the first earnings from a new employer, shall send the change of address or new place of employment to: the court: by certified mail, return receipt requested; or by filing in person at the court and obtaining proof of filing; and if the recipient receives the support payments, the recipient, by first–class mail; or if the support enforcement agency receives the support payments, the support enforcement agency: by certified mail, return receipt requested; if the agency’s website allows parents to update address and employment information, by entering the new address or place of employment on–line; by filing in person at the agency and obtaining proof of filing; or by telephone or electronic communication to the agency and obtaining proof of change.

Except as provided in § 10-123 or § 10-124 of this subtitle, an obligor may contest the issuance of an earnings withholding order by moving for a stay of the order no later than 15 days after a copy of the withholding order is mailed to the obligor under § 10-127 of this subtitle. A motion for a stay of the withholding order: shall be under oath; shall state the grounds for contesting the earnings withholding, including dates and amount of payments in dispute; and may be on a form that shall be prepared by the court. Any person who willfully makes a false representation of facts on a motion for stay of the withholding order under this section shall be subject to the penalties for perjury. Upon receipt of a motion for a stay of the withholding order under subsection (a) of this section, the court shall immediately notify the recipient and the support enforcement agency, if applicable, and shall schedule a hearing within 15 days. The only issues that may be adjudicated at a hearing scheduled under this section are: whether the alleged arrearage existed; the amount of the arrearage; the identity of the obligor; and that the amount of the withholding order exceeds the limits of the federal Consumer Credit Protection Act. Payment of arrearage after the date of the motion for service of the withholding order is not a defense against withholding. After adjudication of the issues under subsection (e) of this section, if the court finds that the obligor owed an amount in excess of 30 days’ support at the time the request for service of the withholding order was filed, the court shall cause the earnings withholding order to be served on the obligor’s employer immediately and shall deny the stay. If the court finds that the amount of the withholding order exceeds the limits of the federal Consumer Credit Protection Act, the court shall alter the amount of the earnings withholding to the maximum allowed under the federal Consumer Credit Protection Act. In any event, the court shall rule on the request for service of the earnings withholding order within 45 days of the mailing of the notice to the obligor.

On motion of the obligor or the recipient that may be filed on a form which shall be prepared by the court, the court shall terminate the withholding if: the support obligation is terminated and the total arrearages are paid; all of the parties join in a motion for termination of the withholding; or within 60 days of the withholding order being served, the court finds: no history of child support arrearages; and the arrearage which gave rise to the withholding order was the result of a bona fide medical emergency involving hospitalization of the obligor or the death of the obligor’s parents, spouse, children, or stepchildren. The Administration shall notify the employer to terminate the withholding without the necessity of a further order when: the support obligation is fulfilled; and no arrearage exists.

Earnings withholding orders issued out of state shall be enforced in the same manner under this Part III of this subtitle as earnings withholding orders issued in this State.

Support orders issued out of state shall be enforced in the same manner under this Part III of this subtitle as support orders issued in this State. A recipient of an out-of-state support order may file a request for service of an earnings withholding order under § 10-126 of this subtitle by submitting the information required under § 10-126 of this subtitle, and a certified support order or a support order registered in this State. A recipient of an out-of-state support order may request that the support enforcement agency file with the court a request for service of an earnings withholding order under § 10-126 of this subtitle by submitting a request for service, a certified support order, and a statement of arrears under oath. A request under this subsection may be submitted by the recipient or a support enforcement agency.

In the case of an out-of-state obligor or out-of-state employer, the support enforcement agency shall, upon receipt of a request for service of an earnings withholding on the accrual of 30 days’ support arrears, send to the appropriate state agency or court a request for earnings withholding and any information and fees required by that state to process the request.

Upon request of the obligor, the court shall immediately authorize service of an earnings withholding order. Notwithstanding any other provision of this Part III, a court may at any time issue an earnings withholding order, in a contempt or other proceeding, if: the recipient or the support enforcement agency has filed a petition that includes a request for an earnings withholding order; and the obligor is in arrears in support payments of more than 30 days. A hearing shall be held if the obligor appears and contests the issuance of the order. The amount of the wage withholding order entered under this subsection: shall be enough to pay the support as originally entered by the court; and may include a part of the arrearage.

Unpaid child support, due under an order requiring payments through a support enforcement agency, constitutes a lien in favor of the obligee on all real and personal property of the obligor. The Administration shall notify the obligor and obligee of any child support lien established under paragraph (1) of this subsection. A child support lien established under subsection (a) of this section arises on the date of notice that the support is due and continues to the date on which the child support lien is: satisfied; released by the Administration because the child support lien is: unenforceable; or uncollectible; or released by order of the court.

The Administration may file a notice of a child support lien with the clerk of a circuit court. On receipt of a notice of a child support lien, the clerk of a circuit court shall: record and index the lien; and enter the lien in the judgment docket of the court. The docket entry shall include: the name of the person whose property is subject to the child support lien; and the amount and date of the child support lien. From the date on which a child support lien is filed, the child support lien has the full force and effect of a judgment lien. A child support lien established under this Part IV of this subtitle may be enforced in accordance with the Maryland Rules.

If a child support lien is not satisfied or released, the Administration may bring an action in a circuit court to enforce the lien. The following persons shall be made parties to the proceeding: each person who has a recorded lien on the property that is sought to be subjected to the proceedings under this section; and each person who claims a right or interest in the property that is sought to be subjected to the proceedings under this section. The court, acting without a jury, shall: adjudicate all matters involved in the proceedings; and determine the merits of all claims or liens. If the claim of the obligee is established, the court may order: a sale of the property or rights to property; and a distribution of any proceeds of sale to the Administration or obligee.

Upon request of the Administration, a child support lien arising in another state may be recorded and enforced in the same manner and to the same extent as a lien arising under § 10-140 of this subtitle.

The remedies provided in this Part IV are in addition to and not in substitution for any other remedies.