Senate File 2180 - Introduced SENATE FILE 2180 BY REYNOLDS and WARNSTADT (COMPANION TO LSB 5655HH BY BELL) A BILL FOR An Act allowing county treasurers to collect restitution 1 owed to a district court, certain debts owed to or being 2 collected by the state, and delinquent debt owed to the 3 clerk of the district court from a person renewing a vehicle 4 registration, and providing a fee. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5655XS (6) 83 dea/nh

S.F. 2180 Section 1. Section 321.40, subsection 4, Code Supplement 1 2009, is amended to read as follows: 2 4. a. The county treasurer shall refuse to renew the 3 registration of a vehicle registered to a person when notified 4 by the department through the distributed teleprocessing 5 network that the person has not paid restitution as defined 6 under section 910.1, subsection 4, to a clerk of the court 7 located within the state. Each clerk of court shall, on a 8 daily basis, notify the department through the Iowa court 9 information system of the full name , and social security 10 number , and amount due for restitution, including all 11 applicable fees and penalties, of all persons who owe 12 delinquent restitution and the full name and social security 13 number, if applicable, of all persons whose restitution 14 obligation has been satisfied or canceled. This subsection 15 does not apply to the transfer of a registration or the 16 issuance of a new registration. 17 b. The county treasurer of the county of the person’s 18 residence and in which the person’s vehicle is registered 19 may collect restitution on behalf of a clerk of the district 20 court located within the state from a person applying for 21 renewal of a vehicle registration. The applicant may remit the 22 amount due for restitution along with a processing fee of five 23 dollars to the county treasurer at the time of registration 24 renewal. Upon payment of the required restitution, the 25 processing fee, and the vehicle registration fee, the county 26 treasurer shall issue the registration to the person. A county 27 treasurer collecting restitution for a clerk of the district 28 court shall update vehicle records on a daily basis through 29 the distributed teleprocessing network for all persons whose 30 restitution obligations have been satisfied or canceled by the 31 county treasurer. On a monthly basis, the county treasurer 32 shall forward all restitution funds collected to the department 33 of revenue for disbursement to the respective clerks of the 34 district court where the plans of restitution were filed. 35 -1- LSB 5655XS (6) 83 dea/nh 1/ 6

S.F. 2180 Sec. 2. Section 321.40, subsection 6, Code Supplement 2009, 1 is amended to read as follows: 2 6. a. The department or the county treasurer shall refuse 3 to renew the registration of a vehicle registered to the 4 applicant if the department or the county treasurer knows that 5 the applicant has a delinquent account, charge, fee, loan, 6 taxes, or other indebtedness owed to or being collected by the 7 state, from information provided pursuant to sections 8A.504 8 and 421.17. An applicant may contest this action by requesting 9 a contested case proceeding from the agency that referred the 10 debt for collection pursuant to section 8A.504. The department 11 of revenue and the department of transportation shall notify 12 the county treasurers through the distributed teleprocessing 13 network of all persons who owe such a charge, fee, loan, taxes, 14 or other indebtedness. 15 b. The county treasurer of the county of the person’s 16 residence and in which the person’s vehicle is registered may 17 collect a charge, fee, loan, taxes, or other indebtedness owed 18 to or being collected by the state from a person applying 19 for renewal of a vehicle registration. The applicant may 20 remit full payment of the charge, fee, loan, taxes, or other 21 indebtedness including applicable fees and penalties, along 22 with a processing fee of five dollars, to the county treasurer 23 at the time of registration renewal. Upon full payment of 24 the required charge, fee, loan, taxes, or other indebtedness 25 including applicable fees and penalties, the processing fee, 26 and the vehicle registration fee, the county treasurer shall 27 issue the registration to the person. A county treasurer 28 collecting on behalf of the department of revenue shall update 29 the vehicle registration records through the distributed 30 teleprocessing network on a daily basis for all persons 31 whose charge, fee, loan, taxes, or other debt payable to the 32 department of revenue has been satisfied or canceled by the 33 county treasurer. On a monthly basis, a county treasurer shall 34 forward all funds collected for the department of revenue to 35 -2- LSB 5655XS (6) 83 dea/nh 2/ 6

S.F. 2180 the department of revenue. 1 Sec. 3. Section 321.40, subsection 9, Code Supplement 2009, 2 is amended by adding the following new paragraph: 3 NEW PARAGRAPH . c. Notwithstanding paragraph “a” , the county 4 treasurer of the county of the person’s residence and in which 5 the person’s vehicle is registered may collect delinquent court 6 debt on behalf of a clerk of the district court located within 7 the state from a person applying for renewal of a vehicle 8 registration, unless the clerk of the district court notifies 9 the county treasurer that the person’s debt must be paid in 10 person to the clerk of the district court. The clerk of the 11 district court shall, on a daily basis, notify the department 12 through the Iowa court information system of the amount of 13 payment required from a person identified under paragraph “a” 14 in order to allow the person to renew a vehicle registration. 15 The applicant may remit payment of the amount required by 16 the clerk of the district court along with a processing 17 fee of five dollars to the county treasurer at the time of 18 registration renewal. Upon payment of the amount required by 19 the clerk of the district court, the processing fee, and the 20 vehicle registration fee, the county treasurer shall issue the 21 registration to the person. A county treasurer collecting 22 delinquent court debt for the clerk of the district court shall 23 update vehicle records on a daily basis through the distributed 24 teleprocessing network for all persons whose court debts have 25 been satisfied or canceled by the county treasurer and transfer 26 the court debt funds collected under this paragraph to the 27 clerk of the district court. 28 Sec. 4. Section 321.152, Code 2009, is amended by adding the 29 following new subsection: 30 NEW SUBSECTION . 2A. The five dollar processing fee charged 31 by a county treasurer for collection of restitution pursuant to 32 section 321.40, subsection 4; the collection of debts payable 33 to the department of revenue pursuant to section 321.40, 34 subsection 6; or the collection of debt owed to a clerk of the 35 -3- LSB 5655XS (6) 83 dea/nh 3/ 6

S.F. 2180 district court pursuant to section 321.40, subsection 9, shall 1 be retained for deposit in the county general fund. 2 Sec. 5. Section 321.153, Code 2009, is amended to read as 3 follows: 4 321.153 Treasurer’s report to department. 5 1. The county treasurer on the tenth day of each month shall 6 certify to the department a full and complete statement of all 7 fees and penalties received by the county treasurer during 8 the preceding calendar month and shall remit all moneys not 9 retained for deposit under section 321.152 to the treasurer of 10 state. 11 2. The distributed teleprocessing network shall be used 12 in the collection, receipting, accounting, and reporting of 13 any fee collected through the registration renewal or title 14 process, with sufficient time and financial resources provided 15 for implementation. 16 3. This section does not apply to fees collected or retained 17 by a county treasurer pursuant to participation in county 18 issuance of driver’s licenses under chapter 321M. 19 4. This section does not apply to processing fees charged by 20 a county treasurer for collection of restitution pursuant to 21 section 321.40, subsection 4; the collection of debts payable 22 to the department of revenue pursuant to section 321.40, 23 subsection 6; or the collection of court debt owed to a clerk 24 of the district court pursuant to section 321.40, subsection 9. 25 EXPLANATION 26 This bill expands the ability of county treasurers to 27 collect certain moneys owed to a district court or the state 28 from persons applying for renewal of a vehicle registration. 29 Currently, a treasurer is required to refuse registration 30 renewal if the treasurer is notified by the department of 31 transportation that the applicant has not paid restitution 32 to a clerk of court in the state. The applicant must remit 33 the restitution directly to the clerk of court before the 34 vehicle registration can be renewed. The bill allows the 35 -4- LSB 5655XS (6) 83 dea/nh 4/ 6

S.F. 2180 county treasurer to collect the restitution from the applicant 1 and to then renew the registration. The county treasurer is 2 required to update the vehicle records through the distributed 3 teleprocessing network on a daily basis for persons whose 4 restitution obligations have been satisfied or canceled by 5 the county treasurer and forward all restitution funds to the 6 department of revenue on a monthly basis for distribution to 7 the applicable clerks of court. 8 Current law requires a county treasurer to refuse to renew 9 a vehicle registration if the treasurer knows that the person 10 has a delinquent account, charge, fee, loan, taxes, or other 11 indebtedness owed to or being collected by the state. The 12 person has to address the debt before the county treasurer 13 can renew the registration of the person’s vehicle. The bill 14 provides a process for collection of such debts by the county 15 treasurer on behalf of the department of revenue. The county 16 treasurer may collect the amount owed prior to issuing the 17 registration renewal. The treasurer is required to update the 18 vehicle records through the distributed teleprocessing network 19 on a daily basis for persons whose debts have been satisfied 20 or canceled by the county treasurer and forward the amounts 21 collected to the department of revenue on a monthly basis. 22 Current law also requires the county treasurer to refuse 23 to renew a vehicle registration for an applicant who owes 24 delinquent court debt that is being collected by a county 25 attorney. However, if the person enters into a payment plan 26 satisfactory to the county attorney, the county treasurer 27 may temporarily lift the registration hold and renew the 28 applicant’s vehicle registration. The bill allows the county 29 treasurer to collect delinquent court debt on behalf of a clerk 30 of the district court in the state and renew the applicant’s 31 vehicle registration, unless the treasurer is notified that 32 the debt must be paid in person to the clerk of court. The 33 clerk of court is required to provide daily notification to the 34 department of transportation through the Iowa court information 35 -5- LSB 5655XS (6) 83 dea/nh 5/ 6

S.F. 2180 system of the amount of payment required before the applicant’s 1 registration can be renewed. The county treasurer is required 2 to update the vehicle records through the distributed 3 teleprocessing network on a daily basis for persons whose court 4 debts have been satisfied or canceled by the county treasurer 5 and transfer the funds collected to the clerk of court. 6 If an applicant for renewal of a vehicle registration 7 chooses to make payment to the county treasurer for restitution 8 owed to the court; for a charge, fee, loan, taxes, or other 9 indebtedness owed to the state; or for delinquent court debt 10 owed to the clerk of the district court, the applicant is 11 required to pay a $5 processing fee to the county treasurer, 12 which is to be deposited in the county general fund. 13 -6- LSB 5655XS (6) 83 dea/nh 6/ 6