2013 Maryland Code
FAMILY LAW
§ 10-113 - Powers -- Income tax refund intercept; interception of State lottery prizes

§10-113.

(a) 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:

(1) the Administration has accepted an assignment of support under § 5-312(b)(2) of the Human Services Article; or

(2) the recipient of support payments has filed an application for support enforcement services with the Administration.

(b) The Administration shall notify the obligor that:

(1) a certification has been made by the Administration; and

(2) the obligor may ask the Administration to investigate the arrearage.

(c) The certification shall include, if known:

(1) the full name of the obligor, and any other names known to be used by the obligor;

(2) the address and the Social Security number of the obligor; and

(3) the amount of the arrearage.

(d) (1) 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.

(2) On receipt of a request for investigation from the obligor, the Administration shall:

(i) conduct an investigation as to the accuracy of the reported arrearage; and

(ii) if the Administration finds that there is an error, correct the amount of the reported arrearage or withdraw the certification.

(e) The State Comptroller may not question the certification made by the Administration.

(f) The State Comptroller shall:

(1) 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;

(2) pay to the obligor any part of the income tax refund over the amount of the arrearage; and

(3) notify the obligor of:

(i) the amount paid to the Administration; and

(ii) the rights of the obligor under subsection (g) of this section.

(g) (1) 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.

(2) 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.

(h) The State Comptroller shall honor refund interception requests in the following order:

(1) a refund interception request to collect an unpaid State, county, or municipal tax;

(2) a refund interception request under this Part II of this subtitle for arrears of support payments;

(3) a refund interception request for converted funds under § 15-122.2 of the Health - General Article; and

(4) any other refund interception request.

(i) The Secretary of Human Resources and the State Comptroller may adopt rules and regulations to carry out this section.

§ 10-113 - 1. Certification to State Lottery and Gaming Control Agency

(a) Obligors in arrears $150 or more. -- The Administration may certify to the State Lottery and Gaming Control Agency the name of any obligor who is in arrears in the amount of $ 150 or more if:

(1) the Administration has accepted an assignment of support under § 5-312(b)(2) of the Human Services Article; or

(2) the recipient of support payments has filed an application for support enforcement services with the Administration.

(b) Contents of certification. -- The certification shall contain:

(1) the full name of the obligor, and any other names known to be used by the obligor;

(2) the Social Security number of the obligor; and

(3) the amount of the arrearage.

(c) Notice to obligor. -- If an obligor who has been certified as an obligor wins a lottery prize to be paid by check directly by the State Lottery and Gaming Control Agency, the State Lottery and Gaming Control Agency shall send a notice to the obligor that:

(1) the obligor has won a prize to be paid by check directly by the State Lottery and Gaming Control Agency;

(2) the State Lottery and Gaming Control Agency has received certification from the Child Support Enforcement Administration of the obligor's child support arrearage in the amount specified;

(3) subsection (d) of this section requires the State Lottery and Gaming Control Agency to withhold the prize to pay it towards the obligor's support arrearage;

(4) the State Lottery and Gaming Control Agency proposes to transfer the prize, or that part of it which is equal to the support arrearage, to the Administration if no appeal is filed within 15 days;

(5) the obligor may appeal to the Administration if the obligor disputes the existence or the amount of the arrearage;

(6) if the obligor appeals to the Administration, the prize will be distributed as the Administration directs; and

(7) if no appeal is filed within 15 days, the prize, or that part of it equal to the support arrearage, will be transferred to the Administration.

(d) Excess over arrearage. -- If the prize exceeds the arrearage, the State Lottery and Gaming Control Agency shall immediately pay the excess to the obligor. The State Lottery and Gaming Control Agency shall withhold any part of the prize that does not exceed the arrearage until notified by the Administration to whom the withheld prize money shall be paid.

(e) Appeal by obligor. -- Upon receipt of a notice from the State Lottery and Gaming Control Agency any obligor who disputes the existence or amount of the arrearage may appeal the proposed transfer within 15 days of the date of the notice to the Administration.

(f) Failure to appeal. -- If no appeal is filed within 15 days, the State Lottery and Gaming Control Agency shall transfer the amount of the prize withheld to the Administration.

(g) Payment of prize upon appeal. -- The Administration shall notify the State Lottery and Gaming Control Agency that upon appeal, the withheld prize shall be:

(1) paid to the obligor;

(2) transferred to the Administration; or

(3) partly paid to the obligor and partly transferred to the Administration, in the amounts specified.

(h) Order of honoring interception requests. -- The State Lottery and Gaming Control Agency shall honor lottery prize interception requests in the following order:

(1) an interception request under this section;

(2) an interception request under § 11-618 of the Criminal Procedure Article; and

(3) an interception request under § 3-307 of the State Finance and Procurement Article.

(i) Authority to adopt regulations. -- The Secretary of Human Resources and the Director of the State Lottery and Gaming Control Agency may jointly adopt regulations to implement this section.

§ 10-113 - 2. Interception of State payments for child support arrears.

(a) Obligors in arrears $150 or more. -- The Administration may certify to the State Comptroller any obligor who is in arrears under a child support order, if:

(1) the amount of arrears exceeds $ 150; and

(2) the Administration is providing services in the case under Title IV, Part D, of the federal Social Security Act.

(b) Notice to obligor. -- The Administration shall notify the obligor that:

(1) a certification has been made by the Administration; and

(2) the obligor has a right to request an investigation as provided under subsection (d) of this section.

(c) Contents of certification. -- The certification shall include, if known:

(1) the full name of the obligor, and any other names known to be used by the obligor;

(2) the address and Social Security number of the obligor; and

(3) the amount of the arrearage.

(d) Investigation. --

(1) 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.

(2) (i) 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.

(ii) On completion of the investigation, the Administration shall notify the obligor of the outcome of the investigation.

(iii) 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.

(e) Interception of payments to obligor; notice. -- The State Comptroller shall:

(1) withhold the amount of the arrearage from:

(i) any payment due to the obligor; or

(ii) any abandoned property delivered to the State Comptroller under Title 17 of the Commercial Law Article in which the obligor has an interest;

(2) forward the amount withheld to the Administration; and

(3) notify the obligor of:

(i) the amount paid to the Administration; and

(ii) the right to appeal the intercept to the Office of Administrative Hearings as provided in subsection (g) of this section.

(f) Handling of intercepted payment. -- On receipt of the intercepted payment, the Administration shall:

(1) retain any part of the payment that does not exceed the amount of arrearage owed at the time the payment was received; and

(2) pay to the obligor any part of the payment that exceeds the amount of arrearage owed at the time the payment was received.

(g) Hearings. --

(1) 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.

(2) An appeal to the Office of Administrative Hearings shall be conducted in accordance with Title 10, Subtitle 2 of the State Government Article.

(h) Regulations. -- The Secretary of Human Resources and the State Comptroller may adopt regulations to carry out this section.