(a) All financial institutions conducting business in this state shall enter agreements with the department of human services to develop and operate, in coordination with the department of human services, and the federal parent locator service in the case of financial institutions doing business in two (2) or more states, a data match system using automated data exchanges to the maximum extent feasible, to locate, encumber, escrow, seize or surrender the assets of any obligor who owes past-due child support. Each financial institution each calendar quarter will provide the name, record address, social security or other taxpayer identification number, and other identifying information for each obligor maintaining an account at the institution who owes past-due child support as identified by the department of human services or its agents or contractors by that person's name and social security or other taxpayer identification number. In drafting the agreements, the department of human services shall consult with a representative number of financial institutions and shall avoid the imposition of requirements that are not reasonably compatible with the data processing and recordkeeping systems generally utilized by financial institutions.

(b) All financial institutions conducting business in this state shall enter agreements with the department of human services to encumber, escrow, seize or surrender, as the case may be, in response to a notice of lien or levy by any agency enforcing child support, the assets of any obligor whose assets held by the financial institution are subject to a child support lien pursuant to 42 U.S.C. § 666(a)(4). The agreements shall provide, wherever feasible by automated data exchange, for the automated notice to the financial institution of any liens on the assets of the obligor and shall provide for the automated escrow, seizure or surrender of the assets pending any adjudication by the department of any encumbrance, escrow, seizure or surrender and for the automated transfer of assets to the department or its contractors or agents after completion of the adjudication, or, at the option of the financial institution and with the agreement of the department, the financial institution may furnish information for all account holders at the financial institution from which the department may determine the delinquent child support obligors.

(c) When an administrative order is issued by the department of human services pursuant to any provisions of law or regulations or pursuant to agreements entered pursuant to subsection (a) or (b) directing the encumbrance, escrow, seizure or surrender of assets of an obligor consisting of a demand deposit account, or an account accessible by a checking or negotiable order of withdrawal for the purpose of satisfying a lien for past-due child support, the department may direct that only a portion of the accounts, up to the amount necessary to satisfy the existing lien for past-due child support, be encumbered, escrowed, seized or surrendered. If less than the whole amount of the account is sought, the department's order shall direct the financial institution to withhold a specific percentage or a specific dollar amount of those types of accounts.

(d) The agreements shall provide for the department of human services to pay a reasonable fee to the financial institution for providing account information and for conducting the data match provided in subsection (a), not to exceed the actual costs incurred by the financial institution.

(e) As used in this part, unless the context otherwise requires:

(1) “Account” means a demand deposit account, account accessible by checking or negotiable orders of withdrawal, savings account, time deposit account, or money-market mutual fund account; and

(2) “Financial institution” means:

(A) A depository institution, as defined in § 3(c) of the Federal Deposit Insurance Act (12 U.S.C. § 1813(c));

(B) An institution-affiliated party, as defined in § 3(u) of the act (12 U.S.C. § 1813(u));

(C) Any federal credit union or state credit union as defined in § 101 of the Federal Credit Union Act (12 U.S.C. § 1752), including, for the purposes of title 36, chapter 5, parts 8 and 9, an institution-affiliated party of the credit union, as defined in § 206 of the act (12 U.S.C. § 1786); and

(D) Any benefit association, insurance company, safe deposit company, money market mutual fund, securities broker/dealer or similar entity authorized to conduct business in this state.