There is a Central Collection Unit in the Department. All employees and personnel of the Central Collection Unit shall: except for assistant Attorneys General assigned to the Central Collection Unit, be in the management service or special appointments in the State Personnel Management System who are appointed by and serve at the pleasure of the Secretary and are not subject to Title 11, Subtitle 2 of the State Personnel and Pensions Article; and receive such compensation as provided in the State budget. Except for employees in the Executive Pay Plan and any assistant Attorneys General assigned to the Central Collection Unit, a management service or special appointment of the skilled service or the professional service employee of the Central Collection Unit may not be permanently removed except for cause and until written charges have been filed and a hearing has been conducted in accordance with Title 10, Subtitle 2 of the State Government Article. This paragraph does not apply to the removal of a management service or special appointment employee because of a layoff that resulted from: a lack of work; or the lack of an appropriation. The Secretary may establish a performance incentive program to provide pay incentives for employees of the Central Collection Unit. Pay incentives provided to employees under this subsection shall be paid from the Central Collection Fund established under § 3–306 of this subtitle as provided in the State budget. Pay incentives may not be provided under this subsection if: the Central Collection Unit sustains an operating loss for the fiscal year in which the pay incentives were earned; or funds are not available in the Central Collection Fund to pay the incentives.

Except as otherwise provided in subsections (b) and (d) of this section, paragraph (2)(ii) of this subsection, or in other law, the Central Collection Unit is responsible for the collection of each delinquent account or other debt that is owed to the State or any of its officials or units. Except as provided in subparagraph (ii) of this paragraph, an official or unit of the State government shall refer to the Central Collection Unit each debt for which the Central Collection Unit has collection responsibility under this subsection and may not settle the debt. A public institution of higher education may not refer a delinquent student account or debt to the Central Collection Unit unless, in accordance with § 15–120 of the Education Article: the delinquent account or debt has not been settled by the end of the late registration period of the semester after the student account became delinquent; or the student has not entered into or made timely payments to satisfy an installment payment plan. For the purposes of this subtitle, a community college or board of trustees for a community college established or operating under Title 16 of the Education Article is a unit of the State. Unless, with the approval of the Secretary, a unit of the State government assigns the claim to the Central Collection Unit, the Central Collection Unit is not responsible for and may not collect: any taxes; any child support payment that is owed under § 5–308 of the Human Services Article; any unemployment insurance contribution or overpayment; any fine; any court costs; any forfeiture on bond; any money that is owed as a result of a default on a loan that the Department of Commerce or the Department of Housing and Community Development has made or insured; any money that is owed under Title 9, Subtitles 2, 3, and 4 and Title 20 of the Insurance Article; any money that is owed for unpaid video tolls and associated civil penalties under § 21–1414 of the Transportation Article under a delinquent account associated with a person residing outside the State; or any money that is owed under a delinquent account for unpaid video tolls and associated civil penalties and is recalled by the Maryland Transportation Authority under § 21–1414(h) of the Transportation Article. The Central Collection Unit shall be responsible for the collection of each delinquent account or other debt that is owed to a community college established or operating under Title 16 of the Education Article if the board of trustees for the community college: adopts a resolution appointing the Central Collection Unit as the collector of delinquent accounts or other debt; and submits the resolution to the Central Collection Unit. The Central Collection Unit may collect delinquent federal funds determined under § 10–208 of this article in an amount up to the total of delinquent federal funds owed to the State.

The Secretary may adopt regulations that relate to collections under this subtitle, including: procedures for referral of a debt or claim; the information that supports the debt or claim; and the rate of fees to be charged under § 3-304 of this subtitle.

In carrying out its responsibilities, the Central Collection Unit may: institute, in its name, any action that is available under State law for collection of a debt or claim; or without suit, settle the debt or claim; for all debts or claims collected on or after June 1, 1992: in addition to the outstanding principal and interest, assess and collect from the debtor a fee, which may not exceed 20% of the outstanding principal and interest, sufficient to cover all collection and administrative costs; and prior to crediting any amount to any agency which refers a debt for any purpose, withhold a fee sufficient to cover all collection and administrative costs; waive or reduce any fee assessed under paragraph (2) of this subsection; certify a debt or claim and the debtor responsible for the debt or claim to: the Comptroller for income tax refund interception in accordance with Title 13, Subtitle 9 of the Tax – General Article; the State Lottery and Gaming Control Agency for State lottery prize interception in accordance with § 3–307 of this subtitle; and a video lottery operator, as defined in § 9–1A–01 of the State Government Article, for prize interception in accordance with § 3–308 of this subtitle; and if the Board of Public Works determines the federal government to be delinquent in federal funds owed to the State under § 10–208 of this article, in consultation with the Attorney General: collect federal funds owed to the State; place liens on federal property in the State; and direct the Comptroller to withhold payments to the federal government as provided under § 4–115 of the State Government Article. In addition to the authority provided under subsection (a) of this section, and notwithstanding that the Central Collection Unit is a unit of the State government and that assistant Attorneys General represent the Unit, the Unit may enforce a statutory or written contractual obligation of a debtor to pay costs in addition to principal, including collection costs, counsel fees, or interest penalties. Notwithstanding any other provision of law, the Central Collection Unit may report any account referred to it under this section to a consumer reporting agency. Notwithstanding the provisions of § 9–602 of the Criminal Law Article, and subject to paragraphs (2) through (5) of this subsection, the Central Collection Unit may manage the monitoring and recording of incoming telephone calls: to the automated call distribution system; and for training and quality control purposes. Any monitored or recorded telephone call shall contain a notice to the telephone caller that “Your call may be recorded or monitored for training and quality control purposes”. The Central Collection Unit may not record or monitor calls to or from a direct individual line of an employee of the Central Collection Unit. The recording of an incoming telephone call to an employee of the Central Collection Unit may not be offered as evidence in a criminal or civil proceeding against any caller unless: the caller has made a personal or imminent threat against an employee or property of the State; or the caller or caller’s representative first introduces the contents or existence of the recorded telephone call in the criminal or civil proceeding. A recording of a telephone call may not be retained by the Central Collection Unit for longer than 60 days, unless the recording is being used or is to be used: for training or quality control purposes; or in a criminal or civil proceeding under paragraph (4) of this subsection.

Except as otherwise provided in this section, the Central Collection Unit shall pay the net proceeds of collections into the State Treasury. If the funds of a unit of the State government are not part of the State Treasury, the Central Collection Unit shall deliver to the Treasurer the net proceeds of collection on a debt or claim that was due to the unit of the State government for its account. All fees collected under § 3-304(a)(2) of this subtitle shall be credited to the Central Collection Fund established under § 3-306 of this subtitle. The Central Collection Unit shall deliver the net proceeds of collections from defendants or liable parents in arrears on restitution payments to the Division of Parole and Probation or the Department of Juvenile Services to be forwarded by the Division or Department to the victim or other appropriate person or agency in accordance with the judgment of restitution.

There is a Central Collection Fund. The Central Collection Fund is a continuing, nonlapsing fund that is not subject to § 7–302 of this article. The Fund shall consist of all fees collected under § 3–304(a)(2) of this subtitle. Subject to the appropriation process in the State budget and subject to subsection (h) of this section, the Department shall use the Fund for the expenses of operating the Central Collection Unit. The State Treasurer shall hold and the State Comptroller shall account for the Fund. The Fund shall be invested and reinvested in the same manner as other State funds. Investment earnings accrue to the benefit of the Fund. For any fiscal year beginning on or after July 1, 2010, any balance in the Fund at the end of the fiscal year in excess of 15% of the actual expenses of operating the Central Collection Unit for that fiscal year reverts to the General Fund of the State.

Certification of a debt or claim owed to the State that the Central Collection Unit sends to the State Lottery and Gaming Control Agency under § 3–304(a)(4) of this subtitle shall contain: the full name of the debtor and any other name known to be used by the debtor; the Social Security number of the debtor; and the amount of the debt. If a debtor wins a lottery prize to be paid directly by the State Lottery and Gaming Control Agency, the State Lottery and Gaming Control Agency shall notify the debtor that: the debtor has won a prize to be paid by the State Lottery and Gaming Control Agency; the State Lottery and Gaming Control Agency has received notice from the Central Collection Unit of the debtor’s debt or claim owed to the State in the specified amount; State law requires the State Lottery and Gaming Control Agency to withhold the prize and to pay it towards the debtor’s debt or claim; the debtor may appeal to the Central Collection Unit if the debtor disputes the existence or the amount of the debt or claim; and if an appeal is not filed within 15 days after the date of the notice, the State Lottery and Gaming Control Agency will transfer the prize or the part of the prize that equals the amount of the debt or claim to the Central Collection Unit. The State Lottery and Gaming Control Agency shall withhold all or part of the prize up to the amount of the debt or claim owed to the State until the Central Collection Unit notifies the State Lottery and Gaming Control Agency to whom the withheld prize money is to be paid. The State Lottery and Gaming Control Agency shall honor lottery prize interception requests in the following order: an interception request under § 10–113.1 of the Family Law Article; an interception request under § 11–618 of the Criminal Procedure Article; an interception request under this section; and an interception request under § 3–308 of this subtitle. On receipt of a notice from the State Lottery and Gaming Control Agency, a debtor who disputes the existence or amount of the debt or claim may appeal the proposed transfer in accordance with the provisions of the Administrative Procedure Act, Title 10, Subtitle 2 of the State Government Article. If an appeal is not filed within 15 days after the date of the notice, the State Lottery and Gaming Control Agency shall transfer the amount of the prize withheld to the Central Collection Unit. If the debtor appeals the proposed transfer, after a hearing the Central Collection Unit shall notify the State Lottery and Gaming Control Agency that the withheld prize shall be: paid to the debtor; transferred to the Central Collection Unit; or in specified amounts, partly paid to the debtor and partly transferred to the Central Collection Unit. The Secretary and the Director of the State Lottery and Gaming Control Agency may jointly adopt regulations to carry out this section.

In this section, “video lottery operator” has the meaning stated in § 9–1A–01 of the State Government Article. Certification of a debt or claim owed to the State that the Central Collection Unit sends to the video lottery operator under § 3–304(a)(4) of this subtitle shall contain: the full name of the debtor and any other name known to be used by the debtor; the Social Security number of the debtor; and the amount of the debt. If a debtor wins a prize to be paid directly by a video lottery operator requiring the issuance of Internal Revenue Service form W–2G or a substantially equivalent form by the video lottery operator, the video lottery operator shall notify the debtor that: the debtor has won a prize to be paid by the video lottery operator; the video lottery operator has received notice from the Central Collection Unit of the debtor’s debt or claim owed to the State in the specified amount; State law requires the video lottery operator to withhold the prize and to pay it toward the debtor’s debt or claim; the debtor may appeal to the Central Collection Unit if the debtor disputes the existence or the amount of the debt or claim; 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 amount of the debt or claim to the Central Collection Unit. The video lottery operator shall withhold all or part of the prize up to the amount of the debt or claim owed to the State. The video lottery operator shall honor prize interception requests in the following order: an interception request under § 10–113.1 of the Family Law Article; an interception request under § 11–618 of the Criminal Procedure Article; an interception request under § 3–307 of this subtitle; and an interception request under this section. On receipt of a notice from the video lottery operator, a debtor who disputes the existence or amount of the debt or claim may appeal the proposed transfer in accordance with the provisions of the Administrative Procedure Act, Title 10, Subtitle 2 of the State Government Article. If an appeal is not filed within 15 days after the date of the notice, the video lottery operator shall transfer the amount of the prize withheld to the Central Collection Unit. If the debtor appeals the proposed transfer, after a hearing held in accordance with Title 10, Subtitle 2 of the State Government Article, the Central Collection Unit shall notify the video lottery operator that the withheld prize shall be: paid to the debtor; transferred to the Central Collection Unit; or in specified amounts, partly paid to the debtor and partly transferred to the Central Collection Unit. The Secretary and the Director of the State Lottery and Gaming Control Agency may jointly adopt regulations to carry out this section.