Senate File 2328 - Introduced SENATE FILE 2328 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO SF 2180) A BILL FOR An Act allowing county treasurers to collect delinquent 1 taxes on behalf of the department of revenue from a person 2 renewing a vehicle registration, requiring a plan for the 3 collection of court debt by county treasurers, and providing 4 a fee. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5655SV (5) 83 dea/nh

S.F. 2328 Section 1. Section 321.40, subsection 6, Code Supplement 1 2009, 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 persons who owe such a charge, fee, loan, taxes, or 14 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, 17 in cooperation with the department of revenue, may collect 18 delinquent taxes including penalties and interest owed to 19 the state from a person applying for renewal of a vehicle 20 registration. The applicant may remit full payment of the 21 taxes including applicable penalties and interest, along with 22 a processing fee of five dollars, to the county treasurer at 23 the time of registration renewal. Upon full payment of the 24 required taxes including applicable penalties and interest, 25 the processing fee, and the vehicle registration fee, the 26 county treasurer shall issue the registration to the person. 27 A county treasurer collecting on behalf of the department of 28 revenue shall update the vehicle registration records through 29 the distributed teleprocessing network on a daily basis for 30 all persons who have paid taxes pursuant to this subsection. 31 A county treasurer shall forward all funds collected for the 32 department of revenue to the department of revenue. 33 Sec. 2. Section 321.152, Code 2009, is amended by adding the 34 following new subsection: 35 -1- LSB 5655SV (5) 83 dea/nh 1/ 4

S.F. 2328 NEW SUBSECTION . 2A. The five dollar processing fee charged 1 by a county treasurer for collection of tax debt owed to the 2 department of revenue pursuant to section 321.40, subsection 6, 3 shall be retained for deposit in the county general fund. 4 Sec. 3. Section 321.153, Code 2009, is amended to read as 5 follows: 6 321.153 Treasurer’s report to department. 7 1. The county treasurer on the tenth day of each month shall 8 certify to the department a full and complete statement of all 9 fees and penalties received by the county treasurer during 10 the preceding calendar month and shall remit all moneys not 11 retained for deposit under section 321.152 to the treasurer of 12 state. 13 2. The distributed teleprocessing network shall be used 14 in the collection, receipting, accounting, and reporting of 15 any fee collected through the registration renewal or title 16 process, with sufficient time and financial resources provided 17 for implementation. 18 3. This section does not apply to fees collected or retained 19 by a county treasurer pursuant to participation in county 20 issuance of driver’s licenses under chapter 321M. 21 4. This section does not apply to processing fees charged by 22 a county treasurer for the collection of tax debt owed to the 23 department of revenue pursuant to section 321.40. 24 Sec. 4. Section 421.17, subsection 27, Code 2009, is amended 25 by adding the following new paragraph: 26 NEW PARAGRAPH . k. A county treasurer may collect delinquent 27 taxes, including penalties and interest, administered by 28 the department in conjunction with renewal of a vehicle 29 registration as provided in section 321.40, subsection 6, 30 paragraph “b” , and rules adopted pursuant to this paragraph. 31 County treasurers shall be given access to information required 32 for the collection of delinquent taxes, including penalties and 33 interest, as necessary to accomplish the purposes of section 34 321.40, subsection 6, paragraph “b” . The confidentiality 35 -2- LSB 5655SV (5) 83 dea/nh 2/ 4

S.F. 2328 provisions of sections 422.20 and 422.72 do not apply to 1 information provided to a county treasurer pursuant to this 2 paragraph. A county treasurer collecting taxes, penalties, 3 and interest administered by the department is subject to the 4 requirements and penalties of the confidentiality laws of this 5 state regarding tax or indebtedness information. The director 6 shall adopt rules to implement the collection of tax debt as 7 authorized in section 321.40 and this paragraph. 8 Sec. 5. INTENT —— COLLECTION OF COURT DEBT BY COUNTY 9 TREASURERS —— STUDY. 10 1. It is the intent of the general assembly to implement the 11 collection of court debt on behalf of the clerk of the district 12 court at the time a person renews a motor vehicle registration 13 beginning July 1, 2011. 14 2. The state court administrator, or the state court 15 administrator’s designee, in cooperation with the Iowa state 16 county treasurers association shall develop a plan to allow 17 county treasurers to collect restitution and delinquent court 18 debt on behalf of the clerk of the district court at the time a 19 person appears before the county treasurer to renew a vehicle 20 registration. The state court administrator shall submit 21 a report of the plan to the general assembly on or before 22 December 1, 2010. 23 EXPLANATION 24 This bill allows a county treasurer to collect delinquent 25 taxes from a person who is applying for renewal of a motor 26 vehicle registration. 27 Current law requires a county treasurer to refuse to renew 28 a vehicle registration if the treasurer knows that the person 29 has a delinquent account, charge, fee, loan, taxes, or other 30 indebtedness owed to or being collected by the state. The 31 person has to address the debt before the county treasurer 32 can renew the registration of the person’s vehicle. The 33 bill provides a process for collection of delinquent taxes, 34 including penalties and interest, by the county treasurer 35 -3- LSB 5655SV (5) 83 dea/nh 3/ 4

S.F. 2328 in cooperation with the department of revenue. The county 1 treasurer may collect the amount owed prior to issuing the 2 registration renewal. The treasurer is required to update the 3 vehicle records through the distributed teleprocessing network 4 on a daily basis for persons who have paid taxes to the county 5 treasurer and forward the amounts collected to the department 6 of revenue. 7 The bill allows the department of revenue to give county 8 treasurers access to confidential information required for the 9 collection of delinquent taxes. County treasurers are subject 10 to requirements and penalties of confidentiality laws regarding 11 tax or indebtedness information. The bill requires the 12 director of revenue to adopt rules to implement the collection 13 of delinquent taxes by county treasurers. 14 If an applicant for renewal of a vehicle registration 15 chooses to make payment to the county treasurer for delinquent 16 taxes, the applicant is required to pay a $5 processing fee to 17 the county treasurer, which is to be deposited in the county 18 general fund. 19 The bill expresses the general assembly’s intent to 20 implement the collection of court debt at the time a person 21 renews a motor vehicle registration beginning July 1, 2011. 22 The state court administrator, in cooperation with the Iowa 23 state county treasurers association, is required to develop 24 a plan to allow county treasurers to collect restitution and 25 delinquent court debt on behalf of a clerk of the district 26 court at the time a person renews a vehicle registration. A 27 report to the general assembly regarding the plan is due on or 28 before December 1, 2010. 29 -4- LSB 5655SV (5) 83 dea/nh 4/ 4