25-523. Financial institutions data match; nonliability; prohibited disclosure; liability; civil liability; definition

438 words·~2 min read·/az/title-25/25-523

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. The department shall enter into agreements with financial institutions that conduct business in this state to develop and operate a data match system to assist the department in the establishment, modification and enforcement of child support orders. The data match system shall use automated data exchange procedures to the maximum extent possible.

B. Data exchanges between financial institutions and the department shall occur quarterly and shall include the name, record address, social security number or other taxpayer identification number and any other identifying information for each obligor who maintains an account at the institution and who owes past due support as identified by the department by name and social security number or other taxpayer identification number.

C. Notwithstanding any law to the contrary, a financial institution is not subject to civil liability for disclosing to the department or its agent a person's financial record pursuant to this section or any acts of omission that are inadvertent and made in good faith.

D. The department and its agent and any state, its agent or political subdivision that administers a child support enforcement program pursuant to title IV-D of the social security act and that obtains a person's financial records may disclose this information only as is necessary to establish, modify or enforce the person's child support obligation.

E. An employee of the department, its agent or any state or political subdivision that administers a child support enforcement program pursuant to title IV-D of the social security act, who knowingly or negligently discloses a person's financial records in violation of subsection D is subject to civil liability in an amount equal to the greater of either:

1. One thousand dollars for each act of unauthorized disclosure of a financial record with respect to which the defendant is found liable.

2. The sum of the actual damages sustained by the plaintiff as a result of the unauthorized disclosure and, in the case of a wilful disclosure or a disclosure that is the result of gross negligence, punitive damages, including costs and attorney fees.

F. The department may pay a reasonable fee to a financial institution for conducting a data match. The fee shall not exceed the actual costs incurred by the financial institution.

G. For purposes of this section "financial institution" means state and federally chartered banks, trust companies, federal and state savings and loan associations, federal and state credit unions, consumer lenders, international banking facilities and financial institution holding companies, insurance companies, benefit associations, safe deposit companies, money market mutual funds and similar institutions authorized to do business in this state and any party affiliated with these financial institutions.