Senate Study Bill 3253 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY CHAIRPERSON DVORSKY) A BILL FOR An Act relating to the collection of debt obligations owed the 1 state and cities and establishing a state debt coordinator, 2 providing a fee, and including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6250XC (29) 83 jm/sc

S.F. _____ Section 1. Section 8A.504, subsection 3, Code 2009, is 1 amended to read as follows: 2 3. In the case of multiple claims to payments filed under 3 this section, priority shall be given to claims filed by the 4 child support recovery unit or the foster care recovery unit, 5 next priority shall be given to claims filed by the clerk of 6 the district court, next priority shall be given to claims 7 filed by the college student aid commission, next priority 8 shall be given to claims filed by the investigations division 9 of the department of inspections and appeals, next priority 10 shall be given to claims filed by a clerk of the district 11 court, and last priority shall be given to claims filed by 12 other state agencies. In the case of multiple claims in which 13 the priority is not otherwise provided by this subsection, 14 priority shall be determined in accordance with rules to be 15 established by the director. 16 Sec. 2. Section 321.40, subsection 6, Code Supplement 2009, 17 is amended to read as follows: 18 6. a. The department or the county treasurer shall refuse 19 to renew the registration of a vehicle registered to the 20 applicant if the department or the county treasurer knows that 21 the applicant has a delinquent account, charge, fee, loan, 22 taxes, or other indebtedness owed to or being collected by the 23 state, from information provided pursuant to sections 8A.504 24 and 421.17. An applicant may contest this action by requesting 25 a contested case proceeding from the agency that referred the 26 debt for collection pursuant to section 8A.504. The department 27 of revenue and the department of transportation shall notify 28 the county treasurers through the distributed teleprocessing 29 network of persons who owe such a delinquent account, charge, 30 fee, loan, taxes, or other indebtedness. 31 b. The county treasurer of the county of the person’s 32 residence and in which the person’s vehicle is registered, 33 in cooperation with the department of revenue, may collect 34 delinquent taxes including penalties and interest owed to 35 -1- LSB 6250XC (29) 83 jm/sc 1/ 30

S.F. _____ the state from a person applying for renewal of a vehicle 1 registration. The applicant may remit full payment of the 2 taxes including applicable penalties and interest, along with 3 a processing fee of five dollars, to the county treasurer at 4 the time of registration renewal. Upon full payment of the 5 required taxes including applicable penalties and interest, 6 the processing fee, and the vehicle registration fee, the 7 county treasurer shall issue the registration to the person. 8 A county treasurer collecting on behalf of the department of 9 revenue shall update the vehicle registration records through 10 the distributed teleprocessing network on a daily basis for 11 all persons who have paid taxes pursuant to this subsection. 12 A county treasurer shall forward all funds collected for the 13 department of revenue to the department of revenue. 14 Sec. 3. Section 321.40, subsection 9, Code Supplement 2009, 15 is amended to read as follows: 16 9. a. The clerk of the district court shall notify the 17 county treasurer of any delinquent court debt, as defined in 18 section 602.8107, which is being collected by the centralized 19 collection unit of the department of revenue pursuant to 20 section 602.8107, subsection 3, or the county attorney pursuant 21 to section 602.8107, subsection 4. The county treasurer shall 22 refuse to renew the vehicle registration of the applicant upon 23 such notification from the clerk of the district court in 24 regard to such applicant. 25 b. If the applicant enters into or renews a payment plan 26 that is satisfactory to the centralized collection unit of 27 the department of revenue, the county attorney , or the county 28 attorney’s designee, the centralized collection unit or 29 the county attorney shall provide the county treasurer with 30 written or electronic notice of the payment plan within five 31 days of entering into such a plan. The county treasurer shall 32 temporarily lift the registration hold on an applicant for a 33 period of ten days if the treasurer receives such notice in 34 order to allow the applicant to register a vehicle for the 35 -2- LSB 6250XC (29) 83 jm/sc 2/ 30

S.F. _____ year. If the applicant remains current with the payment plan 1 entered into with the centralized collection unit or the county 2 attorney or the county attorney’s designee, subsequent lifts 3 of registration holds shall be granted without additional 4 restrictions. 5 Sec. 4. Section 321.152, Code 2009, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 2A. The five dollar processing fee charged 8 by a county treasurer for collection of tax debt owed to the 9 department of revenue pursuant to section 321.40, subsection 6, 10 shall be retained for deposit in the county general fund. 11 Sec. 5. Section 321.153, Code 2009, is amended to read as 12 follows: 13 321.153 Treasurer’s report to department. 14 1. The county treasurer on the tenth day of each month shall 15 certify to the department a full and complete statement of all 16 fees and penalties received by the county treasurer during 17 the preceding calendar month and shall remit all moneys not 18 retained for deposit under section 321.152 to the treasurer of 19 state. 20 2. The distributed teleprocessing network shall be used 21 in the collection, receipting, accounting, and reporting of 22 any fee collected through the registration renewal or title 23 process, with sufficient time and financial resources provided 24 for implementation. 25 3. This section does not apply to fees collected or retained 26 by a county treasurer pursuant to participation in county 27 issuance of driver’s licenses under chapter 321M. 28 4. This section does not apply to processing fees charged by 29 a county treasurer for the collection of tax debt owed to the 30 department of revenue pursuant to section 321.40. 31 Sec. 6. NEW SECTION . 364.22B Collection of judgment debt. 32 1. As used in this section, “judgment debt” means any 33 criminal penalty, any personal judgment for a civil penalty, 34 or any personal or in rem judgment for the costs of abating a 35 -3- LSB 6250XC (29) 83 jm/sc 3/ 30

S.F. _____ nuisance or other violation, owing to a city in any proceeding 1 brought as a municipal infraction under section 364.22, or in a 2 civil nuisance proceeding under chapter 657, or in a criminal 3 proceeding for a misdemeanor violation under a city ordinance. 4 2. Judgment debt owing to a city is deemed delinquent if it 5 is not paid within thirty days after the date it is assessed. 6 An amount which was ordered by the court to be paid on a date 7 fixed in the future is deemed delinquent if it is not received 8 by the clerk of court within thirty days after the fixed date 9 set out in the court order. If an amount was ordered to be 10 paid in installments and an installment is not received within 11 thirty days after the date it is due, the entire amount of the 12 judgment debt is deemed delinquent. 13 3. a. A city may contract with a private collection 14 designee for the collection of judgment debt sixty days after 15 the judgment debt in a case is deemed delinquent pursuant to 16 subsection 2. 17 b. The contract shall provide for a collection fee of up 18 to twenty-five percent of the amount of the balance of the 19 judgment debt in a case deemed delinquent. The collection 20 fee shall be added to the amount of the judgment debt deemed 21 delinquent. The amount of the judgment debt deemed delinquent 22 and the collection fee shall be owed by and collected from the 23 defendant. The collection fee shall be used to compensate the 24 private collection designee. 25 Sec. 7. Section 421.17, subsection 27, Code 2009, is amended 26 by adding the following new paragraph: 27 NEW PARAGRAPH . k. A county treasurer may collect delinquent 28 taxes, including penalties and interest, administered by 29 the department in conjunction with renewal of a vehicle 30 registration as provided in section 321.40, subsection 6, 31 paragraph “b” , and rules adopted pursuant to this paragraph. 32 County treasurers shall be given access to information 33 required for the collection of delinquent taxes, including 34 penalties and interest, as necessary to accomplish the 35 -4- LSB 6250XC (29) 83 jm/sc 4/ 30

S.F. _____ purposes of section 321.40, subsection 6, paragraph “b” . The 1 confidentiality provisions of sections 422.20 and 422.72 do not 2 apply to information provided by the department to a county 3 treasurer pursuant to this paragraph. A county treasurer 4 collecting taxes, penalties, and interest administered by 5 the department is subject to the requirements and penalties 6 of the confidentiality laws of this state regarding tax or 7 indebtedness information. The director shall adopt rules to 8 implement the collection of tax debt as authorized in section 9 321.40 and this paragraph. 10 Sec. 8. Section 421.17, Code 2009, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 31. a. To the extent permissible by 13 federal law, to subpoena certain records held by a public or 14 private utility company with respect to an individual who has 15 a debt or obligation placed with the centralized collection 16 unit of the department. The subpoena authority granted in this 17 subsection may be used only after reasonable efforts have been 18 made by the centralized collection unit to identify and locate 19 the individual. 20 b. The department may subpoena customer records, but 21 shall not request or require the disclosure of transaction 22 information, account activity, or proprietary information. 23 c. A public or private utility company shall respond to the 24 subpoenas. The subpoenas shall not be served more frequently 25 than quarterly. 26 d. The burden of showing reasonable cause to believe that 27 the documents or records sought by the subpoena are necessary 28 to assist the department under this subsection shall be upon 29 the director. In administering this subsection, the director 30 and the department shall comply with all applicable state and 31 federal laws pertaining to the confidentiality or privacy 32 of individuals or public or private utility companies. The 33 information and customer records obtained by the department 34 pursuant to this subsection are confidential records and are 35 -5- LSB 6250XC (29) 83 jm/sc 5/ 30

S.F. _____ not subject to requests for examination pursuant to chapter 22. 1 e. A public or private utility company shall not be held 2 liable for any action arising as a result of providing the 3 records described in paragraph “b” or for any other action taken 4 reasonably and in good faith to comply with this subsection. 5 f. As used in this subsection, “public or private utility 6 company” means a public utility, cable, video, or satellite 7 television company, cellular telephone company, or internet 8 service provider. 9 Sec. 9. Section 421.17A, subsection 4, Code 2009, is amended 10 to read as follows: 11 4. Verification of accounts and immunity from liability. 12 a. The facility may contact a financial institution to 13 obtain verification of the account number, the names and 14 social security numbers listed for the account, and the 15 account balance of an account held by an obligor. Contact 16 with a financial institution may be by telephone or by written 17 communication. The financial institution may require positive 18 voice recognition and may require the telephone number of 19 the authorized person from the facility before releasing an 20 obligor’s account information by telephone. 21 b. The facility and financial institutions doing business 22 in Iowa shall develop and operate a data match system, using 23 automated data exchanges to the greatest extent feasible. The 24 data match system shall, as provided in paragraph “c” , serve as 25 the means by which each financial institution provides to the 26 facility for each calendar quarter the name, record address, 27 social security number or other taxpayer identification 28 number, and other identifying information for each obligor who 29 maintains an account at the institution, as identified by the 30 facility by name and social security number or other taxpayer 31 identification number. 32 c. (1) A financial institution shall provide the 33 information described in paragraph “b” through the process 34 developed by the department of human services pursuant to 35 -6- LSB 6250XC (29) 83 jm/sc 6/ 30

S.F. _____ section 252I.4, subsection 2, and a financial institution shall 1 not be required to provide or match to a file more frequently 2 than the financial institution provides information under the 3 process described in section 252I.4, subsection 2. 4 (2) The facility and the department of human services shall 5 enter into a cooperative agreement to implement paragraph “b” to 6 the extent allowed by federal law, including Tit. IV, part 7 D of the Social Security Act, at no additional cost to the 8 department of human services. 9 d. (1) The facility shall pay a reasonable fee to a 10 financial institution for conducting the data match required 11 in paragraph “c” . The amount of the fee shall not exceed the 12 lesser of either one hundred fifty dollars for each quarterly 13 data match conducted or the actual costs incurred by the 14 financial institution for each quarterly data match conducted. 15 (2) Notwithstanding any other provision of law to the 16 contrary, a financial institution shall be allowed a reasonable 17 amount of time to submit a claim for a fee under this 18 paragraph. The amount of time allowed shall be determined by 19 the department by rule. 20 b. e. The financial institution is immune from any civil or 21 criminal liability which might otherwise be incurred or imposed 22 for information released by the financial institution to the 23 facility pursuant to this section. 24 c. f. The financial institution or the facility is not 25 liable for the cost of any early withdrawal penalty of an 26 obligor’s certificate of deposit. 27 g. The information received by the facility is confidential 28 and shall be used by the facility only in levy collection 29 activities. 30 h. The director shall adopt rules for the administration of 31 this subsection and for the implementation of the data match 32 system. 33 Sec. 10. Section 421.17A, Code 2009, is amended by adding 34 the following new subsections: 35 -7- LSB 6250XC (29) 83 jm/sc 7/ 30

S.F. _____ NEW SUBSECTION . 9. Immunity of financial institution. A 1 financial institution shall not be liable either for blocking 2 access to or surrendering an individual’s assets in response to 3 a levy action under this section or for any other action taken 4 in good faith to comply with the requirements of this section. 5 NEW SUBSECTION . 10. Actions not precluded. This section 6 shall not be construed to preclude a financial institution from 7 doing either of the following: 8 a. Recouping a deposit made to an individual’s account if 9 the financial institution is lawfully entitled to do so. 10 b. Collecting standard or contractual account activity fees 11 to the extent such fees are necessary to maintain the account 12 during any period in which access to the account is blocked or 13 encumbered. 14 Sec. 11. NEW SECTION . 421C.1 State debt coordinator —— 15 established —— duties —— authority. 16 1. The office of the state debt coordinator is established 17 within the department of revenue for administrative 18 and budgetary purposes. The office is to be headed and 19 administered by the state debt coordinator. 20 a. The governor shall appoint the coordinator, subject 21 to senate confirmation. The coordinator shall possess an 22 expert knowledge of and skills in the field of debt collection 23 and have an intricate understanding of the workings of state 24 government. The coordinator’s term of office shall be four 25 years, beginning July 1 of the year of appointment and ending 26 on June 30 of the year of expiration. 27 b. If a vacancy occurs in the office of the state debt 28 coordinator, the vacancy shall be filled for the unexpired 29 portion of the term in the same manner as the original 30 appointment was made. 31 c. The coordinator shall not engage in any occupation, 32 business, or profession that would interfere with or be 33 inconsistent with the coordinator’s duties. The coordinator 34 shall not serve on or under any committee of any political 35 -8- LSB 6250XC (29) 83 jm/sc 8/ 30

S.F. _____ party or actively campaign on behalf of a candidate for 1 elective office. 2 2. The duties of the coordinator shall include all of the 3 following: 4 a. Coordinating the internal operations of the office and 5 developing and implementing policies and procedures designed to 6 ensure the efficient administration of the office. 7 b. Appointing all personnel deemed necessary for the 8 administration of the functions of the office as provided by 9 this chapter. 10 c. Preparing an annual budget for the office. 11 d. Developing and recommending legislative proposals 12 deemed necessary for the continued efficiency of the office’s 13 functions and reviewing legislative proposals related to 14 matters within the office’s purview. 15 e. Reviewing the debt collection practices of each branch 16 of state government, except the practices related to the 17 collection of delinquent child support obligations. 18 f. Coordinating the collection efforts of each branch of 19 state government. 20 g. Making recommendations to the general assembly to improve 21 and increase debt collection efficiencies and practices. 22 h. Filing a notice of a lien and negotiating a settlement 23 as provided in section 421C.2. 24 i. Managing the debt settlement program established in 25 section 421C.3. 26 j. Accepting and maintaining county attorney collection 27 reports required under section 602.8107, subsection 4. 28 k. Accepting and reviewing county attorney applications to 29 the debt settlement program as required by section 421C.4. 30 l. Adopting rules deemed necessary for the administration of 31 this chapter in accordance with chapter 17A. 32 3. The state debt coordinator shall have the authority to 33 appoint a designee to carry out certain duties provided in this 34 chapter. 35 -9- LSB 6250XC (29) 83 jm/sc 9/ 30

S.F. _____ 4. Notwithstanding any other law to the contrary, the office 1 of the state debt coordinator shall be provided access to all 2 state debt collection information, including full viewing 3 access to the Iowa court information system, for the purpose 4 of collecting personal identifying information and collecting 5 or coordinating debt collection efforts. This section does 6 not apply to debt collection information related to delinquent 7 child support obligations. 8 Sec. 12. NEW SECTION . 421C.2 Notice of lien in civil 9 action. 10 1. When a debt obligation is owed the state, the state 11 debt coordinator shall have a lien, to the extent of the debt 12 obligation owed, upon all monetary claims which the debtor may 13 have against third parties. A lien under this section is not 14 effective unless the state debt coordinator files a notice 15 of lien with the clerk of the district court in the county 16 where the debtor resides and with the debtor’s attorney or 17 other representative, if applicable. To be effective against 18 a monetary claim, the notice of lien must be filed before a 19 third party has concluded a final settlement with the debtor, 20 the debtor’s attorney, or other representative. The third 21 party shall obtain a written determination from the state 22 debt coordinator concerning the amount of the lien before a 23 settlement is deemed final for purposes of this section. A 24 compromise, including but not limited to a settlement, waiver, 25 or release, of a monetary claim under this section does not 26 defeat the state debt coordinator’s lien except upon written 27 agreement by the coordinator or the coordinator’s designee. 28 A settlement, award, or judgment structured in any manner 29 that does not include a debt obligation owed the state does 30 not defeat the state court debt coordinator’s lien if there 31 is any recovery by the debtor unless a written agreement has 32 been entered into between the state debt coordinator or the 33 coordinator’s designee and the debtor. 34 2. The state debt coordinator shall be provided viewing 35 -10- LSB 6250XC (29) 83 jm/sc 10/ 30

S.F. _____ access to the Iowa court information system as provided in 1 section 421C.1 to determine if a debtor owes a debt obligation 2 to the state. 3 3. The state debt coordinator’s lien is valid and binding on 4 an attorney, insurer, or other third party only upon monetary 5 notice given by the state debt coordinator. 6 4. An insurer or attorney representing a debtor on a 7 monetary claim upon which the state debt coordinator has a lien 8 under this section shall notify the state debt coordinator 9 prior to negotiating a settlement offer, if the insurer or 10 attorney has actual knowledge of the lien. 11 a. Actual knowledge under this section shall include the 12 notice to the attorney pursuant to subsection 1. 13 b. The mailing and deposit in a United States post office 14 or public mailing box of the notice, addressed to the insurer, 15 attorney, or other third party at its location used for service 16 of original notice, is adequate legal notice of the lien. 17 5. Upon a judgment or settlement of a total claim by the 18 debtor, of which the lien for delinquent court debt is a part, 19 the court costs and reasonable attorney fees shall first be 20 deducted from the total judgment or settlement. One-third of 21 the remaining balance shall then be deducted and paid to the 22 debtor. From the remaining balance, the lien of the department 23 shall be paid. Any amount remaining shall be paid to the 24 debtor. 25 6. The state debt coordinator may enforce its lien by a 26 civil action against any liable third party if a judgment or 27 settlement was paid to the debtor without notifying the state 28 debt coordinator as provided in this section. 29 7. For purposes of this section the term “third party” 30 includes an attorney, individual, institution, corporation, or 31 public or private agency which is or may be liable to pay all or 32 part of a debtor’s monetary claim. 33 Sec. 13. NEW SECTION . 421C.3 Debt settlement program. 34 1. As used in this section, “eligible debt” means all 35 -11- LSB 6250XC (29) 83 jm/sc 11/ 30

S.F. _____ delinquent debt obligations owed the state, except as provided 1 in subsection 2. “Eligible debt” includes any interest and 2 penalties assessed against such debt obligations. 3 2. The coordinator shall establish a debt settlement 4 program. The program shall apply to all delinquent debt 5 obligations due that are classified as court debt pursuant to 6 section 602.8107. 7 3. The following debt obligations are ineligible for the 8 program: 9 a. Delinquent debt obligations that were imposed less than 10 four years prior to the date of the application. 11 b. Victim restitution as defined in section 910.1. 12 c. Civil penalties assessed pursuant to section 321.218A, 13 321.32A, or 321J.17. 14 d. Jail fees charged pursuant to section 356.7. 15 4. The following persons are ineligible for the program: 16 a. A person whose income level exceeds two hundred percent 17 of the United States poverty level as defined by the most 18 recently revised poverty income guidelines published by the 19 United States department of health and human services. 20 (1) The coordinator may determine that a person whose 21 income is at or below two hundred percent of the United States 22 poverty level as defined by the most recently revised poverty 23 income guidelines published by the United States department of 24 health and human services, is ineligible for the program if the 25 debt coordinator determines the person is able to pay the full 26 amount of the delinquent debt. 27 (2) In making the determination of a person’s ability 28 to pay the full amount of the delinquent debt, the court 29 shall consider not only the person’s income, but also the 30 availability of any assets subject to execution, including but 31 not limited to cash, stocks, bonds, and any other property 32 which may be applied to the eligible debt. 33 b. A person who is in jail, prison, or who is under 34 supervision during the period of incarceration or supervision. 35 -12- LSB 6250XC (29) 83 jm/sc 12/ 30

S.F. _____ c. A person paying delinquent court debt through an 1 established payment plan with the clerk of the district court, 2 with the centralized collection unit of the department of 3 revenue or its designee, with a county attorney or the county 4 attorney’s designee, or with a private collection designee. 5 d. A person who has previously participated in the program. 6 5. Under the program the state debt coordinator is 7 authorized to forgive not more than fifty percent of all 8 eligible debt obligations due. 9 6. The program shall provide that upon written application 10 and payment of the agreed upon percentage of eligible debt 11 obligation due to the state, the state shall forgive any 12 remaining balance of eligible debt obligation due and shall 13 not seek any contempt or civil action or criminal prosecution 14 against the person related to the eligible debt obligation 15 forgiven under the program. Upon the forgiveness of the 16 remaining balance of the eligible debt pursuant to the program, 17 the case in which the debt accrued shall be considered by the 18 state as paid in full. 19 7. The written application shall contain all case numbers 20 associated with the eligible debt obligation due and a general 21 description of such debt. 22 8. Failure to pay the amount agreed upon by the date 23 specified shall bar the person’s participation in the program 24 for life. 25 9. A person who participates in the program shall relinquish 26 all administrative and judicial rights to challenge the 27 imposition and the amount of the eligible debt obligation owed. 28 10. If a driver’s license is reinstated as a result of 29 participating in the program, the person shall be required to 30 pay a reinstatement fee as provided in section 321.191, any 31 civil penalty assessed pursuant to section 321.218A, 321A.32A, 32 or 321J.17, and provide proof of financial responsibility 33 pursuant to section 321A.17, if otherwise required by law. 34 11. Upon paying the amount required under subsection 5, the 35 -13- LSB 6250XC (29) 83 jm/sc 13/ 30

S.F. _____ department of revenue shall provide the person with a certified 1 document detailing the case numbers paid in full under the 2 program. Any state department, agency, or branch shall, upon 3 the filing of a certified document detailing the cases paid 4 in full under the program, indicate in the records of the 5 department, agency, or branch that the case is in fact paid in 6 full with respect to the eligible debt obligations paid under 7 the program. 8 12. The coordinator shall prepare and make available 9 debt settlement application forms which contain requirements 10 for approval of an application. The coordinator may deny an 11 application that is inconsistent with this section. 12 13. Any department, agency, or branch shall cooperate with 13 the state debt coordinator in administering the program. 14 14. The director of revenue shall establish an account and 15 shall deposit in the account all receipts received under the 16 program. Not later than the fifteenth day of each month, the 17 director shall deposit amounts received with the treasurer of 18 state for deposit in the general fund of the state. 19 15. The state debt coordinator shall submit an annual 20 report by January 1 to the chairpersons and ranking members 21 of the joint appropriations subcommittee on justice systems 22 and the legislative services agency, detailing the amount of 23 debt obligations settled under the program, including the 24 classification of the debt settled and the county of residence 25 of persons who had debt settled under the program or with a 26 debt settlement designee as provided in section 421C.4. 27 Sec. 14. NEW SECTION . 421C.4 Debt settlement collection 28 by designees. 29 1. As used in this section “county attorney” means a single 30 county attorney office or a group of county attorney offices 31 whose counties have entered into an agreement pursuant to 32 chapter 28E pursuant to section 602.8107, subsection 4, to 33 collect delinquent court debt. 34 2. The centralized collection unit of the department of 35 -14- LSB 6250XC (29) 83 jm/sc 14/ 30

S.F. _____ revenue and a county attorney collecting delinquent court debt 1 pursuant to section 602.8107, subsection 4, are eligible to 2 act as the state debt coordinator’s designee under the debt 3 settlement program. If the centralized collection unit of 4 the department of revenue or a county attorney serves as the 5 state debt coordinator’s designee the procedures of the program 6 established in section 421C.3 apply to the designee except as 7 otherwise provided in this section. 8 3. a. In order to be eligible to settle debt under the 9 program, a county attorney shall first make application to 10 the state debt coordinator requesting authority to act as the 11 state debt coordinator’s designee. The state debt coordinator 12 shall approve each application, upon a showing of commitment 13 to collect delinquent court debt pursuant to section 602.8107, 14 subsection 4, and upon reaffirmation to continue collection 15 efforts pursuant to section 602.8107, subsection 4. A county 16 attorney is not eligible to participate in the debt settlement 17 program if the county attorney has been deemed ineligible under 18 section 602.8107, subsection 4, paragraph “g” . 19 b. If a county attorney is approved to act as the state 20 debt coordinator’s designee under the debt settlement program 21 any eligible court debt settled that is more than two years 22 old shall be deposited with the clerk of the district court as 23 provided in section 602.8107, subsection 4, and distributed 24 to the county in accordance with section 602.8107, subsection 25 4. For purposes of calculating the amounts distributed to 26 the county, the amounts collected by the county attorney 27 when acting as the state debt coordinator designee shall 28 be considered as any other debt collected under the county 29 attorney collection program pursuant to section 602.8107, 30 subsection 4. The remainder collected by the county attorney 31 acting as the state debt coordinator’s designee shall be 32 remitted to the state court administrator as provided in 33 section 602.8107, subsection 4. 34 4. For those counties in which a county attorney is not 35 -15- LSB 6250XC (29) 83 jm/sc 15/ 30

S.F. _____ acting as the state debt coordinator’s designee under the debt 1 settlement program, or for cases the centralized collection 2 unit is collecting upon, the centralized collection unit of the 3 department of revenue may serve as the state debt coordinator’s 4 designee. 5 Sec. 15. Section 422.20, subsection 3, paragraph a, Code 6 2009, is amended to read as follows: 7 a. Unless otherwise expressly permitted by section 8A.504, 8 section 421.17, subsections 22, 23, and 26, sections and 9 subsection 27, paragraph “k” , section 252B.9, section 421.17A, 10 subsection 4, section 321.40, subsection 6, sections 321.120, 11 421.19, 421.28, 422.72, and 452A.63, and this section, a 12 tax return, return information, or investigative or audit 13 information shall not be divulged to any person or entity, 14 other than the taxpayer, the department, or internal revenue 15 service for use in a matter unrelated to tax administration. 16 Sec. 16. Section 422.72, subsection 3, paragraph a, Code 17 2009, is amended to read as follows: 18 a. Unless otherwise expressly permitted by section 8A.504, 19 section 421.17, subsections 22, 23, and 26, sections and 20 subsection 27, paragraph “k” , section 252B.9, section 421.17A, 21 subsection 4, section 321.40, subsection 6, sections 321.120, 22 421.19, 421.28, 422.20, and 452A.63, and this section, a 23 tax return, return information, or investigative or audit 24 information shall not be divulged to any person or entity, 25 other than the taxpayer, the department, or internal revenue 26 service for use in a matter unrelated to tax administration. 27 Sec. 17. Section 602.8107, subsection 3, unnumbered 28 paragraph 1, Code Supplement 2009, is amended to read as 29 follows: 30 Thirty days after court debt has been assessed, or if an 31 installment payment is not received within thirty days after 32 the date it is due, the judicial branch may shall assign a case 33 to the centralized collection unit of the department of revenue 34 or its designee to collect debts owed to the clerk of the 35 -16- LSB 6250XC (29) 83 jm/sc 16/ 30

S.F. _____ district court for a period of sixty one hundred twenty days , 1 unless a county attorney has filed with the clerk of the 2 district court a full commitment to collect delinquent court 3 debt pursuant to subsection 4 . In addition, court debt which 4 is being collected under an installment agreement pursuant to 5 section 321.210B which is in default that remains delinquent 6 may shall also be assigned to the centralized collection unit 7 of the department of revenue or its designee for a period of 8 one hundred twenty days . 9 Sec. 18. Section 602.8107, subsection 3, paragraph c, Code 10 Supplement 2009, is amended by striking the paragraph. 11 Sec. 19. Section 602.8107, subsection 4, unnumbered 12 paragraph 1, Code Supplement 2009, is amended to read as 13 follows: 14 The county attorney or the county attorney’s designee 15 may collect court debt sixty days after the court debt is 16 deemed delinquent pursuant to subsection 2. In order to 17 receive a percentage of the amounts collected pursuant to this 18 subsection, the county attorney must file annually with the 19 clerk of the district court on or before July 1 a notice of full 20 commitment to collect delinquent court debt and must file on 21 the first day of each month a list of the cases in which the 22 county attorney or the county attorney’s designee is pursuing 23 the collection of delinquent court debt. The list shall 24 include a list of cases where delinquent court debt is being 25 collected under an installment agreement pursuant to section 26 321.210B , and a list of cases in default which are no longer 27 being collected under an installment agreement but remain 28 delinquent for all cases assigned to the county for collection 29 by the court . The annual notice shall contain a list of 30 procedures which will be initiated by the county attorney. 31 Sec. 20. Section 602.8107, subsection 4, paragraph f, Code 32 Supplement 2009, is amended by striking the paragraph. 33 Sec. 21. Section 602.8107, subsection 4, Code Supplement 34 2009, is amended by adding the following new paragraphs: 35 -17- LSB 6250XC (29) 83 jm/sc 17/ 30

S.F. _____ NEW PARAGRAPH . g. Beginning July 1, 2010, and every fiscal 1 year thereafter, amounts collected and distributed pursuant to 2 this subsection shall be equal to or greater than twenty-five 3 thousand dollars for each county or twenty-five thousand 4 dollars in the aggregate for counties that have entered into an 5 agreement pursuant to chapter 28E. If a county, or counties 6 that have entered into a chapter 28E agreement, fails to meet 7 the minimum threshold established in this paragraph, the 8 county, or counties under the chapter 28E agreement, shall be 9 ineligible to participate in the county attorney collection 10 program the following fiscal year. In the event a county is 11 ineligible to collect under this program, the county may apply 12 to the state debt coordinator established in section 421C.1 to 13 reenter the program following the fiscal year of ineligibility. 14 NEW PARAGRAPH . h. A county participating in the county 15 attorney collection program shall file an annual collection 16 report with the state debt coordinator established in section 17 421C.1. Counties that have entered into a chapter 28E 18 agreement to participate in the county attorney collection 19 program may file one report, detailing collections in each 20 county that is a party to the agreement. 21 Sec. 22. Section 602.8107, subsection 5, paragraphs a and b, 22 Code Supplement 2009, are amended to read as follows: 23 a. The judicial branch may shall contract with a private 24 collection designee for the collection of court debt sixty one 25 hundred twenty days after the court debt in a case is deemed 26 delinquent pursuant to subsection 2 if the county attorney 27 is not collecting the court debt in a case pursuant to 28 subsection 4. The judicial branch shall solicit requests for 29 proposals prior to entering into any contract pursuant to this 30 subsection. 31 b. The contract shall provide for a collection fee equal of 32 up to twenty-five percent of the amount of the court debt in 33 a case deemed delinquent. The collection fee as calculated 34 shall be added to the amount of the court debt deemed 35 -18- LSB 6250XC (29) 83 jm/sc 18/ 30