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*sb0176*
SENATE BILL 176
C7, E2, D4 6lr0011
(PRE–FILED) CF HB 289
By: Chair, Budget and Taxation Committee (By Request – Departmental – Lottery
and Gaming Control Agency)
Requested: September 16, 2025
Introduced and read first time: January 14, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 3, 2026
CHAPTER ______
AN ACT concerning 1
Video Lottery Facility Payouts – Intercepts for Restitution Payments, Child 2
Support Payments, and Debts Owed to the State 3
FOR the purpose of authorizing the Central Collection Unit and the Child Support 4
Administration to certify certain info rmation about restitution or child support 5
certain restitution, child support, and State debt obligors to a video lottery operator 6
for purposes of enforcing a requirement to intercept certain prize payouts at a video 7
lottery facility; authorizing the Central Collection Unit to certify certain information 8
regarding certain debts or claims to a video lottery operator; requiring a video lottery 9
operator to provide certain notice to a debtor that wins a prize to be paid by the 10
operator and withhold all or part of the prize; authorizing certain debtors to appeal 11
the proposed transfer; and generally relating to the interception of video lottery 12
facility payouts. 13
BY repealing and reenacting, without amendments, 14
Article – Criminal Procedure 15
Section 11–616(a) 16
Annotated Code of Maryland 17
(2025 Replacement Volume) 18
BY repealing and reenacting, with amendments, 19
Article – Criminal Procedure 20
Section 11–616(b) and 11–618(a), (b), (d) through (f), and (h) 21
2 SENATE BILL 176
Annotated Code of Maryland 1
(2025 Replacement Volume) 2
BY repealing and reenacting, with amendments, 3
Article – Family Law 4
Section 10–113.1(a), (b), (e) through (g), and (i) 5
Annotated Code of Maryland 6
(2019 Replacement Volume and 2025 Supplement) 7
BY repealing and reenacting, with amendments, 8
Article – State Finance and Procurement 9
Section 3–304(a) and 3–307(c)(2) 10
Annotated Code of Maryland 11
(2021 Replacement Volume and 2025 Supplement) 12
BY adding to 13
Article – State Finance and Procurement 14
Section 3–308 15
Annotated Code of Maryland 16
(2021 Replacement Volume and 2025 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Criminal Procedure 20
11–616. 21
(a) The Division or the Department of Juvenile Services: 22
(1) in addition to other actions authorized under Part I of this subtitle, may 23
refer an overdue restitution account for collection to the Central Collection Unit; and 24
(2) if probation or other supervision is terminated and restitution is still 25
owed, shall refer the overdue rest itution account for collection to the Central Collection 26
Unit. 27
(b) Subject to subsection (c) of this section, the Central Collection Unit may: 28
(1) collect overdue restitution in accordance with Title 3, Subtitle 3 of the 29
State Finance and Procurement Article; and 30
(2) certify a restitution obligor who is in arrears on restitution payments 31
exceeding $30 under the judgment of restitution to: 32
(i) the Comptroller for income tax refund interception in accordance 33
with Title 13, Subtitle 9, Part III of the Tax – General Article; [and] 34
SENATE BILL 176 3
(ii) the State Lottery and Gaming Control Agency for State lottery 1
prize [and video lottery facility prize ] payout interception in accordance with § 11 –618 of 2
this subtitle; AND 3
(III) A VIDEO LOTTERY OPER ATOR, AS DE FINED UNDER § 4
9–1A–01 OF THE STATE GOVERNMENT ARTICLE, FOR VIDEO LOTTERY FA CILITY 5
PRIZE PAYOUT INTERCEPTION IN ACCORDANCE WITH § 11–618 OF THIS SUBTITLE. 6
11–618. 7
(a) (1) In this section the following words have the meanings indicated. 8
(2) “Agency” means the State Lottery and Gaming Control Agency. 9
(3) “Video lottery facility” has the meaning stated in § 9–1A–01 of the State 10
Government Article. 11
(4) “Video lottery [operation licensee” ] OPERATOR” has the meaning 12
stated in § 9–1A–01 of the State Government Article. 13
(b) A certification of arrearage on restitution payments that the Central 14
Collection Unit sends to the Agency OR A VIDEO LOTTERY OPERATOR under § 11–616 of 15
this subtitle shall contain: 16
(1) the full name of the restitution obligor and any other name known to be 17
used by the restitution obligor; 18
(2) the Social Security number of the restitution obligor; and 19
(3) the amount of the arrearage. 20
(d) If a restitution obligor who is overdue in restitution payments wins a prize at 21
a video lottery facility requiring the issuance of Internal Revenue Service form W–2G or a 22
substantially equivalent form by a video lottery [operation licensee] OPERATOR, the video 23
lottery [operation licensee ] OPERATOR shall send a notice to NOTIFY the restitution 24
obligor that: 25
(1) the restitution obligor has won a prize to be paid by cash or check 26
directly by the video lottery [operation licensee] OPERATOR; 27
(2) the [State Lottery and Gaming Control Agency ] VIDEO LOTTERY 28
OPERATOR has received notice from the Central Collection Unit of the restitution obligor’s 29
restitution arrearage in the amount specified; 30
4 SENATE BILL 176
(3) State law requires the video lottery [operation licensee] OPERATOR to 1
withhold the prize and pay it towards the restitution obligor’s restitution arrearage; 2
(4) the restitution obligor has 15 days to MAY appeal to the Central 3
Collection Unit if the restitution obligor disputes the existence or the amount of the 4
arrearage; and 5
(5) on interception of the prize IF AN APPEAL IS NOT FILED WITHIN 15 6
DAYS AFTER THE DATE OF THE NOTICE , the video lottery [operation licensee ] 7
OPERATOR will transfer the prize or the part of the prize that equals the restitution 8
arrearage to the Central Collection Unit. 9
(e) (1) The Agency or the video lottery [operation licensee] OPERATOR shall: 10
(i) withhold and transfer all or part of the prize up to the amount of 11
the arrearage to the Central Collection Unit; and 12
(ii) pay the excess to the restitution obligor. 13
(2) The Agency and a video lottery [operation licensee] OPERATOR shall 14
honor interception requests in the following order: 15
(i) an interception request under § 10 –113.1 of the Family Law 16
Article; 17
(ii) an interception request under this section; [and] 18
(iii) an interception request under § 3–307 of the State Finance and 19
Procurement Article; AND 20
(IV) AN INTERCEPTION REQUEST UNDER § 3–308 OF THE STATE 21
FINANCE AND PROCUREMENT ARTICLE. 22
(f) (1) On receipt of a notice from the Agency or a video lottery [operation 23
licensee] OPERATOR, a restitution obligor who disputes the existence or amount of the 24
arrearage may appeal the transfer IN ACCORDANCE WITH TITLE 10, SUBTITLE 2 OF 25
THE STATE GOVERNMENT ARTICLE. 26
(2) If an appeal is not filed within 15 days after the date of the notice, the 27
Central Collection Unit may retain the withheld prize THE AGENCY OR VIDEO LOTTERY 28
OPERATOR SHALL TRANS FER THE AMOUNT OF TH E PRIZE WITHHELD IN 29
ACCORDANCE WITH SUBSECTION (E)(2) OF THIS SECTION. 30
SENATE BILL 176 5
(3) If the restitution obligor appeals the transfer, after a hearing by the 1
Central Collection Unit IN ACCORDANCE WITH TITLE 10, SUBTITLE 2 OF THE STATE 2
GOVERNMENT ARTICLE, the withheld prize shall be: 3
(i) paid to the restitution obligor; 4
(ii) retained by the Central Collection Unit PAID IN ACCORDANCE 5
WITH SUBSECTION (E)(2) OF THIS SECTION; or 6
(iii) partly paid to the restitution obligor and partly retained by the 7
Central Collection Unit PAID IN ACCORDANCE W ITH SUBSECTION (E)(2) OF THIS 8
SECTION. 9
(h) A video lottery [operation licensee] OPERATOR may not be held liable for an 10
act or omission taken in good faith to comply substantially with the requirements of this 11
section. 12
Article – Family Law 13
10–113.1. 14
(a) (1) In this section the following words have the meanings indicated. 15
(2) “Agency” means the State Lottery and Gaming Control Agency. 16
(3) “Video lottery facility” has the meaning stated in § 9–1A–01 of the State 17
Government Article. 18
(4) “Video lottery [operation licensee” ] OPERATOR” has the meaning 19
stated in § 9–1A–01 of the State Government Article. 20
(b) The Administration may certify to the Agency OR A VIDEO LOTTERY 21
OPERATOR the name of any obligor who is in arrears in the amount of $150 or more if: 22
(1) the Administration has a ccepted an assignment of support under § 23
5–312(b)(2) of the Human Services Article; or 24
(2) the recipient of support payments has filed an application for support 25
enforcement services with the Administration. 26
(e) If an obligor who owes child support and has been certified as an obligor wins 27
a prize at a video lottery facility requiring the issuance of Internal Revenue Service form 28
W–2G or a substantially equivalent form by a video lottery [operation licensee ] 29
OPERATOR, the video lottery [operation licensee] OPERATOR shall provide a notice to 30
NOTIFY the obligor that: 31
6 SENATE BILL 176
(1) the obligor has won a prize to be paid by cash or check directly by the 1
video lottery [operation licensee] OPERATOR; 2
(2) the [State Lottery and Gaming Control Agency ] VIDEO LOTTERY 3
OPERATOR has received certification from the Child Support Administration of the 4
obligor’s child support arrearage in the amount specified; 5
(3) State law requires the video lottery [operation licensee] OPERATOR to 6
withhold the prize and to pay it towards the obligor’s child support arrearage; 7
(4) the obligor has 15 days to MAY appeal to the Administration if the 8
obligor disputes the existence or the amount of the child support arrearage; and 9
(5) on interception of the prize IF AN APPEAL IS NOT FILED WITHIN 15 10
DAYS AFTER THE DATE OF THE NOTICE , the video lottery [operation licensee ] 11
OPERATOR will transfer the prize or the part of the prize that equals the obligor’s child 12
support arrearage to the Administration. 13
(f) (1) The Agency or the video lottery [operation licensee] OPERATOR shall: 14
(i) withhold and transfer all or part of the prize up to the amount of 15
the arrearage to the Administration; and 16
(ii) pay the excess to the obligor. 17
(2) The Agency and a video l ottery [operation licensee] OPERATOR shall 18
honor interception requests in the following order: 19
(i) an interception request under this section; 20
(ii) an interception request under § 11 –618 of the Criminal 21
Procedure Article; [and] 22
(iii) an interception request under § 3 –307 of the State Finance and 23
Procurement Article; AND 24
(IV) AN INTERCEPTION REQUEST UNDER § 3–308 OF THE STATE 25
FINANCE AND PROCUREMENT ARTICLE. 26
(g) (1) On receipt of a notice from the Agency or video lottery [operation 27
licensee] OPERATOR, an obligor who disputes the existence or amount of the arrearage 28
may appeal the transfer. 29
(2) If no appeal is filed within 15 days, the Administration may retain the 30
withheld prize. 31
SENATE BILL 176 7
(3) If the obligor appeals the transfer, after a hearing by the 1
Administration, the withheld prize shall be: 2
(i) paid to the obligor; 3
(ii) retained by the Administration PAID IN ACCORDANCE W ITH 4
SUBSECTION (F)(2) OF THIS SECTION; or 5
(iii) partly paid to the obligor and partly retained by the 6
Administration, in the amounts specified PAID IN ACCORDANCE W ITH SUBSECTION 7
(F)(2) OF THIS SECTION. 8
(i) A video lottery [operation licensee] OPERATOR may not be held liable for an 9
act or omission taken in good faith to comply substantially with the requi rements of this 10
section. 11
Article – State Finance and Procurement 12
3–304. 13
(a) In carrying out its responsibilities, the Central Collection Unit may: 14
(1) (i) institute, in its name, any action that is available under State 15
law for collection of a debt or claim; or 16
(ii) without suit, settle the debt or claim; 17
(2) for all debts or claims collected on or after June 1, 1992: 18
(i) in addition to the outstanding principal and interest, assess and 19
collect from the debtor a fee, which may not exceed 2 0% of the outstanding principal and 20
interest, sufficient to cover all collection and administrative costs; and 21
(ii) prior to crediting any amount to any agency which refers a debt 22
for any purpose, withhold a fee sufficient to cover all collection and administrative costs; 23
(3) waive or reduce any fee assessed under paragraph (2) of this subsection; 24
and 25
(4) certify a debt or claim and the debtor responsible for the debt or claim 26
to: 27
(i) the Comptroller for income tax refund interception in accordance 28
with Title 13, Subtitle 9 of the Tax – General Article; [and] 29
8 SENATE BILL 176
(ii) the State Lottery and Gaming Control Agency for State lottery 1
prize interception in accordance with § 3–307 of this subtitle; AND 2
(III) A VIDEO LOTTERY OPERATOR, AS DEFINED IN § 9–1A–01 OF 3
THE STATE GOVERNMENT ARTICLE, FOR PRIZE INTERCEPTI ON IN ACCORDANCE 4
WITH § 3–308 OF THIS SUBTITLE. 5
3–307. 6
(c) (2) The State Lottery and Gaming Control Agency shall honor lottery prize 7
interception requests in the following order: 8
(i) an interception request under § 10 –113.1 of the Family Law 9
Article; 10
(ii) an interception request under § 11 –618 of the Criminal 11
Procedure Article; [and] 12
(iii) an interception request under this section; AND 13
(IV) AN INTERCEPTION REQU EST UNDER § 3–308 OF THIS 14
SUBTITLE. 15
3–308. 16
(A) IN THIS SECTION , “VIDEO LOTTERY OPERAT OR” HAS THE MEANING 17
STATED IN § 9–1A–01 OF THE STATE GOVERNMENT ARTICLE. 18
(B) CERTIFICATION OF A DE BT OR CLAIM OWED TO THE STATE THAT THE 19
CENTRAL COLLECTION UNIT SENDS TO THE VID EO LOTTERY OPERATOR UNDER § 20
3–304(A)(4) OF THIS SUBTITLE SHALL CONTAIN: 21
(1) THE FULL NAME OF THE DEBTOR AND ANY OTHER NAME KNOWN 22
TO BE USED BY THE DEBTOR; 23
(2) THE SOCIAL SECURITY NUMBER OF THE DEBTOR; AND 24
(3) THE AMOUNT OF THE DEBT. 25
(C) IF A DEBTOR WINS A PRIZE TO BE PAID DIRECTLY BY A VIDEO LOTTERY 26
OPERATOR REQUIRING THE ISSUAN CE OF INTERNAL REVENUE SERVICE FORM 27
W–2G OR A SUBSTANTIALLY E QUIVALENT FORM BY TH E VIDEO LOTTERY 28
OPERATOR, THE VIDEO LOTTERY OPERATOR SHALL NOTIFY THE DEBTOR THAT: 29
SENATE BILL 176 9
(1) THE DEBTOR HAS WON A PRIZE TO BE PAID BY THE VIDEO 1
LOTTERY OPERATOR; 2
(2) THE VIDEO LOTTERY OP ERATOR HAS RECEIVED NOTICE FROM 3
THE CENTRAL COLLECTION UNIT OF THE DEBTOR’S DEBT OR CLAIM OWED TO THE 4
STATE IN THE SPECIFIED AMOUNT; 5
(3) STATE LAW R EQUIRES THE VIDEO LO TTERY OPERATOR TO 6
WITHHOLD THE PRIZE AND TO PAY IT TOWARD THE DEBTOR’S DEBT OR CLAIM; 7
(4) THE DEBTOR MAY APPEA L TO THE CENTRAL COLLECTION UNIT 8
IF THE DEBTOR DISPUTES THE EXISTENCE OR THE AMOUNT OF THE DEBT OR CLAIM; 9
AND 10
(5) IF AN APPEAL IS NOT FILED WITHIN 15 DAYS AFTER THE DATE OF 11
THE NOTICE, THE VIDEO LOTTERY OP ERATOR WILL TRANSFER THE PRIZE OR THE 12
PART OF THE PRIZE TH AT EQUALS THE AMOUNT OF THE DEBT OR CLAIM TO THE 13
CENTRAL COLLECTION UNIT. 14
(D) (1) THE VIDEO LOTTERY OPERATOR SHALL WITHHOLD ALL OR PART 15
OF THE PRIZE UP TO THE AMOUNT OF THE DEBT OR CLAIM OWED TO THE STATE. 16
(2) THE VIDEO LOTTERY OPE RATOR SHALL HONOR PR IZE 17
INTERCEPTION REQUESTS IN THE FOLLOWING ORDER: 18
(I) AN INTERCEPTION REQU EST UNDER § 10–113.1 OF THE 19
FAMILY LAW ARTICLE; 20
(II) AN INTERCEPTION REQU EST UNDER § 11–618 OF THE 21
CRIMINAL PROCEDURE ARTICLE; AND 22
(III) AN INTERCEPTION REQU EST UNDER § 3–307 OF THIS 23
SUBTITLE; AND 24
(IV) AN INTERCEPTION REQUEST UNDER THIS SECTION. 25
(E) (1) ON RECEIPT OF A NOTICE FROM THE VIDEO LOTTERY OPERATOR, 26
A DEBTOR WHO DISPUTES THE EXISTENCE OR AMOUNT OF THE DEBT OR CLAIM MAY 27
APPEAL THE PROPOSED TRANSFER IN ACCORDANCE WITH THE PROVISIONS OF THE 28
ADMINISTRATIVE PROCEDURE ACT, TITLE 10, SUBTITLE 2 OF THE STATE 29
GOVERNMENT ARTICLE. 30
10 SENATE BILL 176
(2) IF AN APPEAL IS NOT FILED WITHIN 15 DAYS AFTER THE DATE OF 1
THE NOTICE, THE VIDEO LOTTERY OP ERATOR SHALL TRANSFE R THE AMOUNT OF 2
THE PRIZE WITHHELD TO THE CENTRAL COLLECTION UNIT. 3
(3) IF THE DEBTOR APPEALS THE PROPOSED TRANSFE R, AFTER A 4
HEARING HELD IN ACCORDANCE W ITH TITLE 10, SUBTITLE 2 OF THE STATE 5
GOVERNMENT ARTICLE, THE CENTRAL COLLECTION UNIT SHALL NOTIFY THE 6
VIDEO LOTTERY OPERATOR THAT THE WITHHELD PRIZE SHALL BE: 7
(I) PAID TO THE DEBTOR; 8
(II) TRANSFERRED TO THE CENTRAL COLLECTION UNIT; OR 9
(III) IN SPECIFIED AMOUNTS, PARTLY PAID TO THE DEBTOR AND 10
PARTLY TRANSFERRED TO THE CENTRAL COLLECTION UNIT. 11
(F) THE SECRETARY AND THE DIRECTOR OF THE STATE LOTTERY AND 12
GAMING CONTROL AGENCY MAY JOINTLY AD OPT REGULATIONS TO C ARRY OUT 13
THIS SECTION. 14
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 15
1, 2026. 16
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.