S.F. 2328 Section 1. Section 8A.323, subsection 5, Code 2020, is 1 amended to read as follows: 2 5. Any fine that remains unpaid upon becoming delinquent 3 may be collected by the department of revenue pursuant to the 4 setoff procedures provided for in section 8A.504 421.65 . For 5 purposes of this subsection , a fine becomes delinquent if 6 it has not been paid within thirty days of the date of the 7 issuance of the parking citation, unless a written request for 8 a hearing is filed as provided pursuant to the rules of the 9 department of revenue . If an appeal is filed and the citation 10 is upheld, the fine becomes delinquent ten days after the 11 issuance of the final decision on the appeal or thirty-one 12 days after the date of the issuance of the parking citation, 13 whichever is later. 14 Sec. 2. Section 8A.502, subsection 2, Code 2020, is amended 15 by striking the subsection. 16 Sec. 3. Section 96.11, subsection 16, Code 2020, is amended 17 to read as follows: 18 16. Reimbursement of setoff costs. The department shall 19 include in the amount set off in accordance with section 8A.504 20 421.65 , for the collection of an overpayment created pursuant 21 to section 96.3, subsection 7 , or section 96.16, subsection 22 4 , an additional amount for the reimbursement of setoff costs 23 incurred by the department of administrative services revenue . 24 Sec. 4. Section 99D.2, subsection 3, Code 2020, is amended 25 to read as follows: 26 3. “Claimant agency” means a public agency as defined 27 in section 8A.504 421.65 , subsection 1 , or the state court 28 administrator as defined in section 602.1101 . 29 Sec. 5. Section 99D.28, subsection 2, Code 2020, is amended 30 to read as follows: 31 2. The licensee is authorized and directed to withhold 32 any winnings of a debtor which are paid out directly by the 33 licensee subject to the lien created by this section and 34 provide notice of such withholding to the winner when the 35 -1- LSB 6319SV (2) 88 ja/jh 1/ 15

S.F. 2328 winner appears and claims winnings in person. The licensee 1 shall pay the funds over to the collection entity which 2 administers the setoff program pursuant to section 8A.504 3 421.65 . 4 Sec. 6. Section 99F.1, subsection 5, Code 2020, is amended 5 to read as follows: 6 5. “Claimant agency” means a public agency as defined 7 in section 8A.504 421.65 , subsection 1 , or the state court 8 administrator as defined in section 602.1101 . 9 Sec. 7. Section 99F.19, subsection 2, Code 2020, is amended 10 to read as follows: 11 2. The licensee is authorized and directed to withhold 12 any winnings of a debtor which are paid out directly by the 13 licensee subject to the lien created by this section and 14 provide notice of such withholding to the winner when the 15 winner appears and claims winnings in person. The licensee 16 shall pay the funds over to the collection entity which 17 administers the setoff program pursuant to section 8A.504 18 421.65 . 19 Sec. 8. Section 99G.38, subsection 3, Code 2020, is amended 20 to read as follows: 21 3. The state of Iowa offset program, as provided in 22 section 8A.504 421.65 , shall be available to the authority to 23 facilitate receipt of funds owed to the authority. 24 Sec. 9. Section 217.34, Code 2020, is amended to read as 25 follows: 26 217.34 Debt setoff. 27 The investigations division of the department of inspections 28 and appeals and the department of human services shall provide 29 assistance to set off against a person’s or provider’s income 30 tax refund or rebate any debt which has accrued through written 31 contract, nonpayment of premiums pursuant to section 249A.3, 32 subsection 2 , paragraph “a” , subparagraph (1), subrogation, 33 departmental recoupment procedures, or court judgment and which 34 is in the form of a liquidated sum due and owing the department 35 -2- LSB 6319SV (2) 88 ja/jh 2/ 15

S.F. 2328 of human services. The department of inspections and appeals, 1 with approval of the department of human services, shall adopt 2 rules under chapter 17A necessary to assist the department of 3 administrative services revenue in the implementation of the 4 setoff under section 8A.504 421.65 in regard to money owed to 5 the state for public assistance overpayments or nonpayment 6 of premiums as specified in this section . The department of 7 human services shall adopt rules under chapter 17A necessary to 8 assist the department of administrative services revenue in the 9 implementation of the setoff under section 8A.504 421.65 , in 10 regard to collections by the child support recovery unit and 11 the foster care recovery unit. 12 Sec. 10. Section 234.8, Code 2020, is amended to read as 13 follows: 14 234.8 Fees for child welfare services. 15 The department of human services may charge a fee for 16 child welfare services to a person liable for the cost of the 17 services. The fee shall not exceed the reasonable cost of the 18 services. The fee shall be based upon the person’s ability 19 to pay and consideration of the fee’s impact upon the liable 20 person’s family and the goals identified in the case permanency 21 plan. The department may assess the liable person for the fee 22 and the means of recovery shall include a setoff against an 23 amount owed by a state agency to the person assessed pursuant 24 to section 8A.504 421.65 . In addition the department may 25 establish an administrative process to recover the assessment 26 through automatic income withholding. The department shall 27 adopt rules pursuant to chapter 17A to implement the provisions 28 of this section . This section does not apply to court-ordered 29 services provided to juveniles which are a charge upon the 30 state pursuant to section 232.141 and services for which the 31 department has established a support obligation pursuant to 32 section 234.39 . 33 Sec. 11. Section 252B.5, subsection 4, Code 2020, is amended 34 to read as follows: 35 -3- LSB 6319SV (2) 88 ja/jh 3/ 15

S.F. 2328 4. Assistance to set off against a debtor’s income tax 1 refund or rebate any support debt, which is assigned to 2 the department of human services or which the child support 3 recovery unit is attempting to collect on behalf of any 4 individual not eligible as a public assistance recipient, which 5 has accrued through written contract, subrogation, or court 6 judgment, and which is in the form of a liquidated sum due 7 and owing for the care, support, or maintenance of a child. 8 Unless the periodic payment plan provisions for a retroactive 9 modification pursuant to section 598.21C apply, the entire 10 amount of a judgment for accrued support, notwithstanding 11 compliance with a periodic payment plan or regardless of the 12 date of entry of the judgment, is due and owing as of the date 13 of entry of the judgment and is delinquent for the purposes of 14 setoff, including for setoff against a debtor’s federal income 15 tax refund or other federal nontax payment. The department 16 of human services shall adopt rules pursuant to chapter 17A 17 necessary to assist the department of administrative services 18 revenue in the implementation of the child support setoff as 19 established under section 8A.504 421.65 . 20 Sec. 12. Section 261.37, subsection 7, Code 2020, is amended 21 to read as follows: 22 7. To establish an effective system for the collection of 23 delinquent loans, including the adoption of an agreement with 24 the department of administrative services revenue to set off 25 against a defaulter’s income tax refund or rebate the amount 26 that is due because of a default on a loan made under this 27 subchapter . The commission shall adopt rules under chapter 28 17A necessary to assist the department of administrative 29 services revenue in the implementation of the student loan 30 setoff program as established under section 8A.504 421.65 . 31 The commission shall apply administrative wage garnishment 32 procedures authorized under the federal Higher Education Act of 33 1965, as amended and codified in 20 U.S.C. §1071 et seq., for 34 all delinquent loans, including loans authorized under section 35 -4- LSB 6319SV (2) 88 ja/jh 4/ 15

S.F. 2328 261.38 , when a defaulter who is financially capable of paying 1 fails to voluntarily enter into a reasonable payment agreement. 2 In no case shall the commission garnish more than the amount 3 authorized by federal law for all loans being collected by the 4 commission, including those authorized under section 261.38 . 5 Sec. 13. Section 321.11A, subsection 1, Code 2020, is 6 amended to read as follows: 7 1. Notwithstanding section 321.11 , the department, upon 8 request, shall provide personal information that identifies 9 a person by the social security number of the person to the 10 following: 11 a. The department of revenue for the purpose purposes of 12 collecting debt and administering the setoff program pursuant 13 to section 421.65 . 14 b. The judicial branch for the purpose of collecting court 15 debt pursuant to section 602.8107 . 16 c. The department of administrative services for the purpose 17 of administering the setoff program pursuant to section 8A.504 . 18 Sec. 14. Section 321.31, subsection 1, paragraph c, Code 19 2020, is amended to read as follows: 20 c. The director shall maintain a records system of 21 delinquent accounts owed to the state using information 22 provided through the computerized data bank established in 23 section 421.17 . The department and county treasurers shall use 24 the information maintained in the records system to determine 25 if applicants for renewal of registration have delinquent 26 accounts, charges, fees, loans, taxes, or other indebtedness 27 owed to or being collected by the state as provided pursuant 28 to section 8A.504 421.65 . The director , the director of the 29 department of administrative services, and the director of 30 revenue shall establish procedures for updating the delinquent 31 accounts records to add and remove accounts, as applicable. 32 Sec. 15. Section 321.40, subsection 6, paragraph a, Code 33 2020, is amended to read as follows: 34 a. The department or the county treasurer shall refuse 35 -5- LSB 6319SV (2) 88 ja/jh 5/ 15

S.F. 2328 to renew the registration of a vehicle registered to the 1 applicant if the department or the county treasurer knows that 2 the applicant has a delinquent account, charge, fee, loan, 3 taxes, or other indebtedness owed to or being collected by the 4 state, from information provided pursuant to sections 8A.504 5 and 421.17 and 421.65 . An applicant may contest this action 6 by initiating a contested case proceeding with the agency 7 that referred the debt for collection pursuant to section 8 8A.504 421.65 . The department of revenue and the department 9 of transportation shall notify the county treasurers through 10 the distributed teleprocessing network of persons who owe 11 such a delinquent account, charge, fee, loan, taxes, or other 12 indebtedness. 13 Sec. 16. NEW SECTION . 421.65 Setoff procedures. 14 1. Definitions. As used in this section, unless the context 15 otherwise requires: 16 a. “Obligor” means a person, not including a public agency, 17 who has been determined to owe a qualifying debt. 18 b. “Public agency” means a board, commission, department, 19 including the department of revenue, or other administrative 20 office or unit of the state of Iowa or any other state entity 21 reported in the Iowa comprehensive annual financial report, 22 or a political subdivision of the state, or an office or unit 23 of a political subdivision. “Public agency” does include the 24 clerk of the district court as it relates to the collection of 25 a qualifying debt. “Public agency” does not include the general 26 assembly or the office of the governor. 27 c. “Public payment” means any claim owed to an obligor by a 28 public agency. 29 d. “Qualifying debt” means any of the following: 30 (1) Any debt, which is assigned to the department of 31 human services, or which is owed to the department of human 32 services for unpaid premiums under section 249A.3, subsection 33 2, paragraph “a” , subparagraph (1), or which the child support 34 recovery unit is otherwise attempting to collect, or which the 35 -6- LSB 6319SV (2) 88 ja/jh 6/ 15

S.F. 2328 foster care recovery unit of the department of human services 1 is attempting to collect on behalf of a child receiving foster 2 care provided by the department of human services. 3 (2) Any debt which is in the form of a liquidated sum due, 4 owing, and payable to the clerk of the district court. 5 (3) Any liquidated sum certain, owing and payable to a 6 public agency, with respect to which the public agency has 7 provided the obligor an opportunity to protest or challenge the 8 sum in a manner compliant with applicable law and due process, 9 and which has been determined as owing through the challenge 10 or protest or for which the time period provided by the public 11 agency to challenge or protest has expired. 12 2. Setoff procedure. The department shall establish and 13 maintain a procedure to set off against each public payment any 14 qualifying debt of the obligor owed to a public agency. The 15 procedure shall only apply when the department determines, in 16 its discretion, it is feasible and complies with applicable 17 law. The procedure shall meet the following conditions: 18 a. Each participating public agency shall obtain and forward 19 to the department the full name and social security number 20 of each obligor, or similar identifying information for an 21 obligor who is not a natural person, and any other information 22 concerning the person the department shall require. The 23 department shall cooperate with public agencies in the exchange 24 of information relevant to identifying public payments and 25 qualifying debt that may be subject to setoff. However, the 26 department shall provide only relevant information required by 27 a public agency. The information shall be held in confidence 28 and used for the purpose of setoff only. Section 422.72, 29 subsection 1, does not apply to this paragraph. 30 b. Each participating public agency shall, at least 31 annually, certify to the department the information required 32 by paragraph “a” , the amount of each obligor’s liability to 33 and the amount of each claim on the public agency, and that 34 all liabilities submitted constitute qualifying debt. The 35 -7- LSB 6319SV (2) 88 ja/jh 7/ 15

S.F. 2328 department may, by rule, require more frequent certifications 1 or certifications of additional information about the 2 qualifying debt or the obligor. The department may, in its 3 discretion, review the accuracy of any certification made 4 pursuant to this paragraph. 5 c. The department may, by rule, establish a minimum amount 6 of liabilities and claims that may be setoff. 7 d. Upon submission of an allegation of liability by a 8 public agency, the department shall notify the public agency 9 whether the obligor is entitled to a public payment, and, if so 10 entitled, shall notify the public agency of the amount of the 11 obligor’s entitlement and last address known to the department. 12 Section 422.72, subsection 1, does not apply to this paragraph. 13 e. Upon notice of entitlement to a public payment, the 14 department shall send written notification to the obligor and 15 any known co-payee of the public payment. The notification 16 shall contain the public agency’s assertion of its rights to 17 all or a portion of the payment and of the public agency’s 18 entitlement to recover the liability through the setoff 19 procedure, the basis of the assertion, the opportunity to 20 request that a jointly or commonly owned right to payment be 21 divided among owners, and the obligor’s opportunity to give 22 written notice of intent to contest the setoff procedure or 23 that the debt is a qualifying debt. 24 f. Upon the request of an obligor or a co-payee of the 25 public payment received by the department within the time 26 period provided in the written notification, and upon receipt 27 of the full name and social security number of the co-payee, 28 or similar identifying information of a co-payee who is not a 29 natural person, the department shall notify the public agency 30 that the public agency shall divide a jointly or commonly owned 31 right to payment in the manner determined by the department. 32 Any jointly or commonly owned right to payment is rebuttably 33 presumed to be owned in equal portions by its joint or common 34 owners. 35 -8- LSB 6319SV (2) 88 ja/jh 8/ 15

S.F. 2328 g. (1) Challenges under this section may be initiated only 1 by an obligor. The department’s review of a challenge to a 2 setoff is not subject to chapter 17A. 3 (2) The obligor challenging the setoff shall submit a 4 written challenge in the manner provided in the notice, within 5 fifteen days of the date of the written notification of intent 6 to setoff. 7 (3) The department, upon receipt of a written challenge, 8 shall provide written notice of the challenge to the public 9 agency. The department shall review the information submitted 10 by the public agency prior to the setoff and shall obtain 11 additional information from the public agency if necessary to 12 establish that the liability is a qualified debt, or to verify 13 the identity of the obligor or the amount owed. The department 14 shall set a time, to occur within ten days of receipt of the 15 challenge, to review the relevant facts of the challenge with 16 the obligor. An alternative time may be set at the request 17 of the obligor. If the obligor does not participate in the 18 review at the scheduled time and an alternative time is not 19 requested and approved, the review shall take place without the 20 obligor being present. Information in favor of the obligor 21 and the public agency shall be considered in the review. Only 22 a determination that the debt is not a qualified debt or a 23 mistake of fact, including but not limited to a mistake in the 24 identity of the obligor or a mistake in the amount owed shall 25 be considered as a reason to deny or modify the setoff. 26 (4) If the department determines that a mistake of fact has 27 occurred or that the liability submitted does not constitute 28 a qualified debt, the public agency shall promptly return the 29 setoff funds to the original payee or payees unless there is 30 another qualifying debt available for setoff. 31 (5) If the department finds no mistake of fact and that the 32 liability is a qualified debt, the department shall provide a 33 notice of that effect to the obligor and the public agency, and 34 the public agency shall retain the funds subject to setoff. 35 -9- LSB 6319SV (2) 88 ja/jh 9/ 15

S.F. 2328 (6) The obligor shall have the right to file an action for 1 wrongful setoff in district court within thirty days of the 2 date of the notice to the obligor provided in subparagraph (5), 3 either in the county where the obligor is located or the county 4 where the main office of the public agency is located. The 5 defendant in such action shall be the public agency, with an 6 additional copy of such petition to be served upon the office 7 of the attorney general. Actions under this section are in 8 equity and not actions at law and are an obligor’s exclusive 9 remedy to challenge any action arising from or related to this 10 section. 11 (7) Recovery under this paragraph is limited to restitution 12 from the public agency of the amount that has been wrongfully 13 setoff or obtained by the public agency. 14 (8) A challenge under this subsection shall not be used to 15 extend, toll, or reopen the statute of limitations to challenge 16 or contest a qualified debt. Only mistakes of fact, failure 17 of the public agency to comply with the provisions of this 18 section, or a liability that is not a qualified debt, shall 19 constitute grounds for challenge under this subsection. 20 h. The department shall, after the department has sent 21 the notice to the obligor provided in paragraph “e” , set off 22 the amount last certified by the public agency as owed to the 23 public agency against the public payment. The department 24 shall refund any balance of the payment to the obligor. The 25 department shall periodically transfer amounts set off to 26 the public agencies entitled to such amounts, reduced by any 27 fees charged for setoff. If an obligor gives written notice 28 of intent to contest a setoff, the public agency shall hold 29 a refund or rebate until final disposition of the challenge. 30 Upon completion of the setoff, the department shall provide 31 written notice of the completed setoff to the obligor and any 32 co-payees of the payment subject to offset. 33 i. The department’s right to credit against tax due or 34 to become due under section 422.73 is not to be impaired by 35 -10- LSB 6319SV (2) 88 ja/jh 10/ 15

S.F. 2328 a right granted to or a duty imposed upon the department by 1 this section. This section is not intended to impose upon the 2 department any additional requirement of notice, hearing, or 3 appeal concerning the right to credit against tax due under 4 section 422.73. 5 j. If the alleged liability is owing and payable to the 6 clerk of the district court and setoff as provided in this 7 section is sought, all of the following shall apply: 8 (1) The judicial branch shall prescribe procedures to 9 permit an obligor to contest the amount of the obligor’s 10 liability to the clerk of the district court. 11 (2) The department shall, except for the procedures 12 described in subparagraph (1), provide for any other applicable 13 procedures concerning setoff as provided in this subsection. 14 (3) Upon completion of the setoff, the department shall 15 file, at least monthly, with the clerk of the district court a 16 notice of satisfaction of each obligation to the full extent of 17 all moneys collected in satisfaction of the obligation. The 18 clerk shall record the notice and enter a satisfaction for the 19 amounts collected. A separate written notice is not required. 20 3. Priority. In the case of multiple claims to payments 21 filed under this section, priority shall be given to claims 22 filed by the child support recovery unit or the foster care 23 recovery unit, next priority shall be given to claims filed 24 by the clerk of the district court, next priority shall be 25 given to claims filed by the investigations division of the 26 department of inspections and appeals, next priority shall be 27 given to claims that will be deposited into the state general 28 fund, and last priority shall be given to claims filed by other 29 public agencies. In the case of multiple claims in which the 30 priority is not otherwise provided by this subsection, priority 31 shall be determined in accordance with rules to be established 32 by the department. 33 4. Authority of the director —— other states. The director 34 shall have the authority to enter into reciprocal agreements 35 -11- LSB 6319SV (2) 88 ja/jh 11/ 15

S.F. 2328 with departments or agencies of other states that have 1 established a setoff procedure. 2 5. Fees. The department shall establish fees for use of the 3 setoff system to be paid by participating public agencies to 4 the department. 5 Sec. 17. Section 422.12G, subsection 2, Code 2020, is 6 amended to read as follows: 7 2. The director of revenue shall draft the income tax form 8 to allow the designation of contributions to the veterans trust 9 fund and to the volunteer fire fighter preparedness fund as 10 one checkoff on the tax return. The department of revenue, 11 on or before January 31, shall transfer one-half of the total 12 amount designated on the tax return forms due in the preceding 13 calendar year to the veterans trust fund and the remaining 14 one-half to the volunteer fire fighter preparedness fund. 15 However, before a checkoff pursuant to this section shall be 16 permitted, all liabilities on the books of the department of 17 administrative services and accounts identified as owing under 18 section 8A.504 421.65 shall be satisfied. 19 Sec. 18. Section 422.12I, subsection 2, Code 2020, is 20 amended to read as follows: 21 2. The director of revenue shall draft the income tax form 22 to allow the designation of contributions to the foundation 23 fund on the tax return. The department, on or before January 24 31, shall transfer the total amount designated on the tax 25 form due in the preceding year to the foundation fund. 26 However, before a checkoff pursuant to this section shall be 27 permitted, all liabilities on the books of the department of 28 administrative services and accounts identified as owing under 29 section 8A.504 421.65 shall be satisfied. 30 Sec. 19. Section 422.12K, subsection 2, Code 2020, is 31 amended to read as follows: 32 2. The director of revenue shall draft the income tax form 33 to allow the designation of contributions to the child abuse 34 prevention program fund on the tax return. The department of 35 -12- LSB 6319SV (2) 88 ja/jh 12/ 15

S.F. 2328 revenue, on or before January 31, shall transfer the total 1 amount designated on the tax return forms due in the preceding 2 calendar year to the child abuse prevention program fund. 3 However, before a checkoff pursuant to this section shall be 4 permitted, all liabilities on the books of the department of 5 administrative services and accounts identified as owing under 6 section 8A.504 421.65 shall be satisfied. 7 Sec. 20. Section 422.20, subsection 3, paragraph a, Code 8 2020, is amended to read as follows: 9 a. Unless otherwise expressly permitted by section 8A.504 , 10 section 8G.4 , section 11.41 , section 96.11, subsection 6 , 11 section 421.17, subsections 22, 23, and 26 , section 421.17, 12 subsection 27 , paragraph “k” , section 421.17, subsection 31 , 13 section 252B.9 , section 321.40, subsection 6 , sections 321.120 , 14 421.19 , 421.28 , 421.65, 422.72 , and 452A.63 , this section , or 15 another provision of law, a tax return, return information, or 16 investigative or audit information shall not be divulged to any 17 person or entity, other than the taxpayer, the department, or 18 internal revenue service for use in a matter unrelated to tax 19 administration. 20 Sec. 21. Section 422.72, subsection 3, paragraph a, Code 21 2020, is amended to read as follows: 22 a. Unless otherwise expressly permitted by section 8A.504 , 23 section 8G.4 , section 11.41 , section 96.11, subsection 6 , 24 section 421.17, subsections 22, 23, and 26 , section 421.17, 25 subsection 27 , paragraph “k” , section 421.17, subsection 31 , 26 section 252B.9 , section 321.40, subsection 6 , sections 321.120 , 27 421.19 , 421.28 , 421.65, 422.20 , and 452A.63 , this section , or 28 another provision of law, a tax return, return information, or 29 investigative or audit information shall not be divulged to any 30 person or entity, other than the taxpayer, the department, or 31 internal revenue service for use in a matter unrelated to tax 32 administration. 33 Sec. 22. Section 456A.16, subsection 7, Code 2020, is 34 amended to read as follows: 35 -13- LSB 6319SV (2) 88 ja/jh 13/ 15

S.F. 2328 7. The department shall adopt rules pursuant to chapter 17A 1 to implement this section . However, before a checkoff pursuant 2 to this section shall be permitted, all liabilities on the 3 books of the department of administrative services revenue and 4 accounts identified as owing under section 8A.504 421.65 shall 5 be satisfied. 6 Sec. 23. Section 602.8102, subsection 58A, Code 2020, is 7 amended to read as follows: 8 58A. Assist the department of administrative services 9 revenue in setting off against debtors’ income tax refunds 10 or rebates under section 8A.504 421.65 , debts which are due, 11 owing, and payable to the clerk of the district court as 12 criminal fines, civil penalties, surcharges, or court costs. 13 Sec. 24. Section 602.8107, subsection 4, paragraph a, Code 14 2020, is amended to read as follows: 15 a. This subsection does not apply to amounts collected for 16 victim restitution, the victim compensation fund, the criminal 17 penalty surcharge, sex offender civil penalty, drug abuse 18 resistance education surcharge, the law enforcement initiative 19 surcharge, county enforcement surcharge, amounts collected as 20 a result of procedures initiated under subsection 5 or under 21 section 8A.504 421.65 , or fees charged pursuant to section 22 356.7 . 23 Sec. 25. Section 642.2, subsection 4, Code 2020, is amended 24 to read as follows: 25 4. Notwithstanding subsections 2, 3, 6, and 7 , any 26 moneys owed to the child support obligor by the state, with 27 the exception of unclaimed property held by the treasurer 28 of state pursuant to chapter 556 , and payments owed to the 29 child support obligor through the Iowa public employees’ 30 retirement system are subject to garnishment, attachment, 31 execution, or assignment by the child support recovery unit 32 if the child support recovery unit is providing enforcement 33 services pursuant to chapter 252B . Any moneys that are 34 determined payable by the treasurer pursuant to section 556.20, 35 -14- LSB 6319SV (2) 88 ja/jh 14/ 15

S.F. 2328 subsection 2 , to the child support obligor shall be subject to 1 setoff pursuant to section 8A.504 421.65 , notwithstanding any 2 administrative rule pertaining to the child support recovery 3 unit limiting the amount of the offset. 4 Sec. 26. REPEAL. Section 8A.504, Code 2020, is repealed. 5 Sec. 27. TRANSITION PROVISIONS. Any rule, regulation, 6 form, order, or directive promulgated by the department of 7 administrative services as required to administer and enforce 8 the provisions of section 8A.504 prior to the effective date of 9 this Act shall continue in full force and effect until amended, 10 repealed, or supplemented by the department of revenue. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill relates to the setoff procedures used by public 15 agencies. 16 The bill repeals the setoff procedures administered by the 17 department of administrative services and contained in Code 18 section 8A.504 and reestablishes the setoff procedures under 19 the purview of the department of revenue. The bill updates 20 references to the setoff procedures accordingly throughout the 21 Code. 22 Pursuant to new Code section 421.65, the department of 23 revenue is required to establish and maintain a procedure to 24 set off against any claim owed to a person by a public agency 25 any liability of that person owed to a public agency, a support 26 debt being enforced by the child support recovery unit, or any 27 other qualifying debt. The bill also provides a process for an 28 obligor to challenge a setoff. 29 The bill provides that any rule, regulation, form, order, 30 or directive the department of administrative services adopted 31 prior to the effective date of the bill to administer Code 32 section 8A.504 is to continue in full force or effect until 33 the department of revenue amends, repeals, or supplements such 34 rule, regulation, form, order, or directive. 35 -15- LSB 6319SV (2) 88 ja/jh 15/ 15