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Panel weighs child‑support overhaul, wage‑garnishment caps and driver‑license rules

2364544 · February 20, 2025
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Summary

The Judiciary Committee heard DHS’ sweeping child‑support overhaul and companion measures that would cap garnishments, exempt low‑income parents from license suspension, and create judicial review before MVA suspensions. Supporters called the changes equitable; opponents flagged administrative burdens and data gaps.

The House Judiciary Committee on Thursday examined a package of child‑support reforms, placing administrative changes proposed by the Department of Human Services alongside bills that would change enforcement tools and provide new judicial protections for noncustodial parents.

What happened: DHS presented House Bill 218, a broad modernization of the state child‑support program that would cap garnishments for low‑income obligors, require a “multi‑family” adjustment in guideline calculations, and stop opening child‑support cases for children in foster care except in limited circumstances. DHS and community groups said the changes would reduce arrears growth, improve payment stability and support family reunification.

At the same time the committee heard separate legislation to change enforcement mechanics: HB 681 would exempt parents with household incomes at or under 250% of federal poverty — currently about $38,000 — from automatic license suspension referrals. HB 110 would move license suspensions for others behind a court process rather than DHS’ current automated administrative referral system.

Why it matters: Maryland suspends thousands of driver’s licenses for child‑support arrears; advocates say suspension often destroys low‑income obligors’ ability to work and pay, making the measure counterproductive. Proponents argued that capping garnishments at 25% for low earners and giving courts an adjudicative role would support steady incomes and protect children’s payments over the long term.

What supporters said: Workforce and fathers’ advocates, legal‑aid groups and job‑training organizations urged changes that protect low‑income obligors and improve collection equity. Several groups endorsed a 25% cap on wage garnishment for parents earning under 250% of the poverty guideline and supported ending automatic referrals when a child is in foster care. DHS said the package is informed by data and models from other states.

What critics said: Business groups and county officials warned that new reporting requirements for employers and independent contractors could create compliance burdens and duplicate reporting. Some witnesses said the bill undercounts operational complexity: the state currently lacks ready data on lottery/sports‑betting intercepts and casino wins, and DHS acknowledged it would need to provide numbers and may need systems work. Some civil‑rights and legal advocates recommended design changes (automatic exemptions rather than post‑suspension investigations) to protect parents who do not receive or cannot respond to DHS notices.

Next steps: Several sponsors proposed technical and sponsor amendments. Committee members asked DHS and other agencies for additional data — including how many parents are affected by license suspensions, current intercept volumes and how many independent‑contractor records it would require to process — before final decisions.

Ending: The package drew bipartisan interest and divided stakeholders; the committee signaled willingness to refine the bills but requested more technical work and clearer fiscal and implementation details before acting.