Senate File 2383 - Introduced SENATE FILE 2383 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SSB 3253) 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 6250SV (2) 83 jm/sc

S.F. 2383 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 6250SV (2) 83 jm/sc 1/ 29

S.F. 2383 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 6250SV (2) 83 jm/sc 2/ 29

S.F. 2383 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 6250SV (2) 83 jm/sc 3/ 29

S.F. 2383 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 6250SV (2) 83 jm/sc 4/ 29

S.F. 2383 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 6250SV (2) 83 jm/sc 5/ 29

S.F. 2383 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. NEW SECTION . 421C.1 State debt coordinator —— 10 established —— duties —— authority. 11 1. The office of the state debt coordinator is established 12 within the department of revenue for administrative 13 and budgetary purposes. The office is to be headed and 14 administered by the state debt coordinator. 15 a. The governor shall appoint the coordinator, subject 16 to senate confirmation. The coordinator shall possess an 17 expert knowledge of and skills in the field of debt collection 18 and have an intricate understanding of the workings of state 19 government. The coordinator’s term of office shall be four 20 years, beginning July 1 of the year of appointment and ending 21 on June 30 of the year of expiration. 22 b. If a vacancy occurs in the office of the state debt 23 coordinator, the vacancy shall be filled for the unexpired 24 portion of the term in the same manner as the original 25 appointment was made. 26 c. The coordinator shall not engage in any occupation, 27 business, or profession that would interfere with or be 28 inconsistent with the coordinator’s duties. The coordinator 29 shall not serve on or under any committee of any political 30 party or actively campaign on behalf of a candidate for 31 elective office. 32 2. The duties of the coordinator shall include all of the 33 following: 34 a. Coordinating the internal operations of the office and 35 -6- LSB 6250SV (2) 83 jm/sc 6/ 29

S.F. 2383 developing and implementing policies and procedures designed to 1 ensure the efficient administration of the office. 2 b. Appointing all personnel deemed necessary for the 3 administration of the functions of the office as provided by 4 this chapter. 5 c. Preparing an annual budget for the office. 6 d. Developing and recommending legislative proposals 7 deemed necessary for the continued efficiency of the office’s 8 functions and reviewing legislative proposals related to 9 matters within the office’s purview. 10 e. Reviewing the debt collection practices of each branch 11 of state government, except the practices related to the 12 collection of delinquent child support obligations. 13 f. Coordinating the collection efforts of each branch of 14 state government. 15 g. Making recommendations to the general assembly to improve 16 and increase debt collection efficiencies and practices. 17 h. Filing a notice of a lien and negotiating a settlement 18 as provided in section 421C.2. 19 i. Managing the debt settlement program established in 20 section 421C.3. 21 j. Accepting and maintaining county attorney collection 22 reports required under section 602.8107, subsection 4. 23 k. Accepting and reviewing county attorney applications to 24 the debt settlement program as required by section 421C.4. 25 l. Adopting rules deemed necessary for the administration of 26 this chapter in accordance with chapter 17A. 27 3. The state debt coordinator shall have the authority to 28 appoint a designee to carry out certain duties provided in this 29 chapter. 30 4. Notwithstanding any other law to the contrary, the office 31 of the state debt coordinator shall be provided access to all 32 state debt collection information, including full viewing 33 access to the Iowa court information system, for the purpose 34 of collecting personal identifying information and collecting 35 -7- LSB 6250SV (2) 83 jm/sc 7/ 29

S.F. 2383 or coordinating debt collection efforts. This section does 1 not apply to debt collection information related to delinquent 2 child support obligations. 3 Sec. 10. NEW SECTION . 421C.2 Notice of lien in civil 4 action. 5 1. When a debt obligation is owed the state, the state 6 debt coordinator shall have a lien, to the extent of the debt 7 obligation owed, upon all monetary claims which the debtor may 8 have against third parties. A lien under this section is not 9 effective unless the state debt coordinator files a notice 10 of lien with the clerk of the district court in the county 11 where the debtor resides and with the debtor’s attorney or 12 other representative, if applicable. To be effective against 13 a monetary claim, the notice of lien must be filed before a 14 third party has concluded a final settlement with the debtor, 15 the debtor’s attorney, or other representative. The third 16 party shall obtain a written determination from the state 17 debt coordinator concerning the amount of the lien before a 18 settlement is deemed final for purposes of this section. A 19 compromise, including but not limited to a settlement, waiver, 20 or release, of a monetary claim under this section does not 21 defeat the state debt coordinator’s lien except upon written 22 agreement by the coordinator or the coordinator’s designee. 23 A settlement, award, or judgment structured in any manner 24 that does not include a debt obligation owed the state does 25 not defeat the state court debt coordinator’s lien if there 26 is any recovery by the debtor unless a written agreement has 27 been entered into between the state debt coordinator or the 28 coordinator’s designee and the debtor. 29 2. The state debt coordinator shall be provided viewing 30 access to the Iowa court information system as provided in 31 section 421C.1 to determine if a debtor owes a debt obligation 32 to the state. 33 3. The state debt coordinator’s lien is valid and binding on 34 an attorney, insurer, or other third party only upon monetary 35 -8- LSB 6250SV (2) 83 jm/sc 8/ 29

S.F. 2383 notice given by the state debt coordinator. 1 4. An insurer or attorney representing a debtor on a 2 monetary claim upon which the state debt coordinator has a lien 3 under this section shall notify the state debt coordinator 4 prior to negotiating a settlement offer, if the insurer or 5 attorney has actual knowledge of the lien. 6 a. Actual knowledge under this section shall include the 7 notice to the attorney pursuant to subsection 1. 8 b. The mailing and deposit in a United States post office 9 or public mailing box of the notice, addressed to the insurer, 10 attorney, or other third party at its location used for service 11 of original notice, is adequate legal notice of the lien. 12 5. Upon a judgment or settlement of a total claim by the 13 debtor, of which the lien for delinquent court debt is a part, 14 the court costs and reasonable attorney fees shall first be 15 deducted from the total judgment or settlement. One-third of 16 the remaining balance shall then be deducted and paid to the 17 debtor. From the remaining balance, the lien of the department 18 shall be paid. Any amount remaining shall be paid to the 19 debtor. 20 6. The state debt coordinator may enforce its lien by a 21 civil action against any liable third party if a judgment or 22 settlement was paid to the debtor without notifying the state 23 debt coordinator as provided in this section. 24 7. For purposes of this section the term “third party” 25 includes an attorney, individual, institution, corporation, or 26 public or private agency which is or may be liable to pay all or 27 part of a debtor’s monetary claim. 28 Sec. 11. NEW SECTION . 421C.3 Debt settlement program. 29 1. As used in this section, “eligible debt” means all 30 delinquent debt obligations owed the state, except as provided 31 in subsection 2. “Eligible debt” includes any interest and 32 penalties assessed against such debt obligations. 33 2. The coordinator shall establish a debt settlement 34 program. The program shall apply to all delinquent debt 35 -9- LSB 6250SV (2) 83 jm/sc 9/ 29

S.F. 2383 obligations due that are classified as court debt pursuant to 1 section 602.8107. 2 3. The following debt obligations are ineligible for the 3 program: 4 a. Delinquent debt obligations that were imposed less than 5 four years prior to the date of the application. 6 b. Victim restitution as defined in section 910.1. 7 c. Civil penalties assessed pursuant to section 321.218A, 8 321.32A, or 321J.17. 9 d. Jail fees charged pursuant to section 356.7. 10 4. The following persons are ineligible for the program: 11 a. A person whose income level exceeds two hundred percent 12 of the United States poverty level as defined by the most 13 recently revised poverty income guidelines published by the 14 United States department of health and human services. 15 (1) The coordinator may determine that a person whose 16 income is at or below two hundred percent of the United States 17 poverty level as defined by the most recently revised poverty 18 income guidelines published by the United States department of 19 health and human services, is ineligible for the program if the 20 debt coordinator determines the person is able to pay the full 21 amount of the delinquent debt. 22 (2) In making the determination of a person’s ability 23 to pay the full amount of the delinquent debt, the court 24 shall consider not only the person’s income, but also the 25 availability of any assets subject to execution, including but 26 not limited to cash, stocks, bonds, and any other property 27 which may be applied to the eligible debt. 28 b. A person who is in jail, prison, or who is under 29 supervision during the period of incarceration or supervision. 30 c. A person paying delinquent court debt through an 31 established payment plan with the clerk of the district court, 32 with the centralized collection unit of the department of 33 revenue or its designee, with a county attorney or the county 34 attorney’s designee, or with a private collection designee. 35 -10- LSB 6250SV (2) 83 jm/sc 10/ 29

S.F. 2383 d. A person who has previously participated in the program. 1 5. Under the program the state debt coordinator is 2 authorized to forgive not more than fifty percent of all 3 eligible debt obligations due. 4 6. The program shall provide that upon written application 5 and payment of the agreed upon percentage of eligible debt 6 obligation due to the state, the state shall forgive any 7 remaining balance of eligible debt obligation due and shall 8 not seek any contempt or civil action or criminal prosecution 9 against the person related to the eligible debt obligation 10 forgiven under the program. Upon the forgiveness of the 11 remaining balance of the eligible debt pursuant to the program, 12 the case in which the debt accrued shall be considered by the 13 state as paid in full. 14 7. The written application shall contain all case numbers 15 associated with the eligible debt obligation due and a general 16 description of such debt. 17 8. Failure to pay the amount agreed upon by the date 18 specified shall bar the person’s participation in the program 19 for life. 20 9. A person who participates in the program shall relinquish 21 all administrative and judicial rights to challenge the 22 imposition and the amount of the eligible debt obligation owed. 23 10. If a driver’s license is reinstated as a result of 24 participating in the program, the person shall be required to 25 pay a reinstatement fee as provided in section 321.191, any 26 civil penalty assessed pursuant to section 321.218A, 321A.32A, 27 or 321J.17, and provide proof of financial responsibility 28 pursuant to section 321A.17, if otherwise required by law. 29 11. Upon paying the amount required under subsection 5, the 30 department of revenue shall provide the person with a certified 31 document detailing the case numbers paid in full under the 32 program. Any state department, agency, or branch shall, upon 33 the filing of a certified document detailing the cases paid 34 in full under the program, indicate in the records of the 35 -11- LSB 6250SV (2) 83 jm/sc 11/ 29

S.F. 2383 department, agency, or branch that the case is in fact paid in 1 full with respect to the eligible debt obligations paid under 2 the program. 3 12. The coordinator shall prepare and make available 4 debt settlement application forms which contain requirements 5 for approval of an application. The coordinator may deny an 6 application that is inconsistent with this section. 7 13. Any department, agency, or branch shall cooperate with 8 the state debt coordinator in administering the program. 9 14. The director of revenue shall establish an account and 10 shall deposit in the account all receipts received under the 11 program. Not later than the fifteenth day of each month, the 12 director shall deposit amounts received with the treasurer of 13 state for deposit in the general fund of the state. 14 15. The state debt coordinator shall submit an annual 15 report by January 1 to the chairpersons and ranking members 16 of the joint appropriations subcommittee on justice systems 17 and the legislative services agency, detailing the amount of 18 debt obligations settled under the program, including the 19 classification of the debt settled and the county of residence 20 of persons who had debt settled under the program or with a 21 debt settlement designee as provided in section 421C.4. 22 Sec. 12. NEW SECTION . 421C.4 Debt settlement collection 23 by designees. 24 1. As used in this section “county attorney” means a single 25 county attorney office or a group of county attorney offices 26 whose counties have entered into an agreement pursuant to 27 chapter 28E pursuant to section 602.8107, subsection 4, to 28 collect delinquent court debt. 29 2. The centralized collection unit of the department of 30 revenue and a county attorney collecting delinquent court debt 31 pursuant to section 602.8107, subsection 4, are eligible to 32 act as the state debt coordinator’s designee under the debt 33 settlement program. If the centralized collection unit of 34 the department of revenue or a county attorney serves as the 35 -12- LSB 6250SV (2) 83 jm/sc 12/ 29

S.F. 2383 state debt coordinator’s designee the procedures of the program 1 established in section 421C.3 apply to the designee except as 2 otherwise provided in this section. 3 3. a. In order to be eligible to settle debt under the 4 program, a county attorney shall first make application to 5 the state debt coordinator requesting authority to act as the 6 state debt coordinator’s designee. The state debt coordinator 7 shall approve each application, upon a showing of commitment 8 to collect delinquent court debt pursuant to section 602.8107, 9 subsection 4, and upon reaffirmation to continue collection 10 efforts pursuant to section 602.8107, subsection 4. A county 11 attorney is not eligible to participate in the debt settlement 12 program if the county attorney has been deemed ineligible under 13 section 602.8107, subsection 4, paragraph “g” . 14 b. If a county attorney is approved to act as the state 15 debt coordinator’s designee under the debt settlement program 16 any eligible court debt settled that is more than two years 17 old shall be deposited with the clerk of the district court as 18 provided in section 602.8107, subsection 4, and distributed 19 to the county in accordance with section 602.8107, subsection 20 4. For purposes of calculating the amounts distributed to 21 the county, the amounts collected by the county attorney 22 when acting as the state debt coordinator designee shall 23 be considered as any other debt collected under the county 24 attorney collection program pursuant to section 602.8107, 25 subsection 4. The remainder collected by the county attorney 26 acting as the state debt coordinator’s designee shall be 27 remitted to the state court administrator as provided in 28 section 602.8107, subsection 4. 29 4. For those counties in which a county attorney is not 30 acting as the state debt coordinator’s designee under the debt 31 settlement program, or for cases the centralized collection 32 unit is collecting upon, the centralized collection unit of the 33 department of revenue may serve as the state debt coordinator’s 34 designee. 35 -13- LSB 6250SV (2) 83 jm/sc 13/ 29

S.F. 2383 Sec. 13. Section 422.20, subsection 3, paragraph a, Code 1 2009, is amended to read as follows: 2 a. Unless otherwise expressly permitted by section 8A.504, 3 section 421.17, subsections 22, 23, and 26, sections and 4 subsection 27, paragraph “k” , section 252B.9, section 321.40, 5 subsection 6, sections 321.120, 421.19, 421.28, 422.72, and 6 452A.63, and this section, a tax return, return information, 7 or investigative or audit information shall not be divulged to 8 any person or entity, other than the taxpayer, the department, 9 or internal revenue service for use in a matter unrelated to 10 tax administration. 11 Sec. 14. Section 422.72, subsection 3, paragraph a, Code 12 2009, is amended to read as follows: 13 a. Unless otherwise expressly permitted by section 8A.504, 14 section 421.17, subsections 22, 23, and 26, sections and 15 subsection 27, paragraph “k” , section 252B.9, section 321.40, 16 subsection 6, sections 321.120, 421.19, 421.28, 422.20, and 17 452A.63, and this section, a tax return, return information, 18 or investigative or audit information shall not be divulged to 19 any person or entity, other than the taxpayer, the department, 20 or internal revenue service for use in a matter unrelated to 21 tax administration. 22 Sec. 15. Section 602.8107, subsection 3, unnumbered 23 paragraph 1, Code Supplement 2009, is amended to read as 24 follows: 25 Thirty days after court debt has been assessed, or if an 26 installment payment is not received within thirty days after 27 the date it is due, the judicial branch may shall assign a case 28 to the centralized collection unit of the department of revenue 29 or its designee to collect debts owed to the clerk of the 30 district court for a period of sixty one hundred twenty days , 31 unless a county attorney has filed with the clerk of the 32 district court a full commitment to collect delinquent court 33 debt pursuant to subsection 4 . In addition, court debt which 34 is being collected under an installment agreement pursuant to 35 -14- LSB 6250SV (2) 83 jm/sc 14/ 29

S.F. 2383 section 321.210B which is in default that remains delinquent 1 may shall also be assigned to the centralized collection unit 2 of the department of revenue or its designee for a period of 3 one hundred twenty days . 4 Sec. 16. Section 602.8107, subsection 3, paragraph c, Code 5 Supplement 2009, is amended by striking the paragraph. 6 Sec. 17. Section 602.8107, subsection 4, unnumbered 7 paragraph 1, Code Supplement 2009, is amended to read as 8 follows: 9 The county attorney or the county attorney’s designee 10 may collect court debt sixty days after the court debt is 11 deemed delinquent pursuant to subsection 2. In order to 12 receive a percentage of the amounts collected pursuant to this 13 subsection, the county attorney must file annually with the 14 clerk of the district court on or before July 1 a notice of full 15 commitment to collect delinquent court debt and must file on 16 the first day of each month a list of the cases in which the 17 county attorney or the county attorney’s designee is pursuing 18 the collection of delinquent court debt. The list shall 19 include a list of cases where delinquent court debt is being 20 collected under an installment agreement pursuant to section 21 321.210B , and a list of cases in default which are no longer 22 being collected under an installment agreement but remain 23 delinquent for all cases assigned to the county for collection 24 by the court . The annual notice shall contain a list of 25 procedures which will be initiated by the county attorney. 26 Sec. 18. Section 602.8107, subsection 4, paragraph f, Code 27 Supplement 2009, is amended by striking the paragraph. 28 Sec. 19. Section 602.8107, subsection 4, Code Supplement 29 2009, is amended by adding the following new paragraphs: 30 NEW PARAGRAPH . g. Beginning July 1, 2010, and every fiscal 31 year thereafter, amounts collected and distributed pursuant to 32 this subsection shall be equal to or greater than twenty-five 33 thousand dollars for each county or twenty-five thousand 34 dollars in the aggregate for counties that have entered into an 35 -15- LSB 6250SV (2) 83 jm/sc 15/ 29

S.F. 2383 agreement pursuant to chapter 28E. If a county, or counties 1 that have entered into a chapter 28E agreement, fails to meet 2 the minimum threshold established in this paragraph, the 3 county, or counties under the chapter 28E agreement, shall be 4 ineligible to participate in the county attorney collection 5 program the following fiscal year. In the event a county is 6 ineligible to collect under this program, the county may apply 7 to the state debt coordinator established in section 421C.1 to 8 reenter the program following the fiscal year of ineligibility. 9 NEW PARAGRAPH . h. A county participating in the county 10 attorney collection program shall file an annual collection 11 report with the state debt coordinator established in section 12 421C.1. Counties that have entered into a chapter 28E 13 agreement to participate in the county attorney collection 14 program may file one report, detailing collections in each 15 county that is a party to the agreement. 16 Sec. 20. Section 602.8107, subsection 5, paragraphs a and b, 17 Code Supplement 2009, are amended to read as follows: 18 a. The judicial branch may shall contract with a private 19 collection designee for the collection of court debt sixty one 20 hundred twenty days after the court debt in a case is deemed 21 delinquent pursuant to subsection 2 if the county attorney 22 is not collecting the court debt in a case pursuant to 23 subsection 4. The judicial branch shall solicit requests for 24 proposals prior to entering into any contract pursuant to this 25 subsection. 26 b. The contract shall provide for a collection fee equal of 27 up to twenty-five percent of the amount of the court debt in 28 a case deemed delinquent. The collection fee as calculated 29 shall be added to the amount of the court debt deemed 30 delinquent. The amount of the court debt deemed delinquent 31 and the collection fee shall be owed by and collected from the 32 defendant. The collection fee shall be used to compensate the 33 private collection designee. The contract may also assess the 34 private collection designee an initial fee for entering into 35 -16- LSB 6250SV (2) 83 jm/sc 16/ 29

S.F. 2383 the contract. 1 Sec. 21. Section 909.3, subsection 1, Code 2009, is amended 2 to read as follows: 3 1. All fines imposed by the court shall be paid on the day 4 the fine is imposed , and the person shall be instructed to pay 5 such fines with the office of the clerk of the district court 6 on the date of imposition . 7 Sec. 22. DEBT AMNESTY PROGRAM. 8 1. A debt amnesty program is established within the 9 department of revenue for a period beginning July 1, 2010, 10 through December 31, 2010, for any debt obligation eligible 11 under section 421C.3. 12 2. A person who is in jail or prison, or who is under 13 supervision, is not eligible for the program during the period 14 of incarceration or supervision. 15 3. A person who is paying delinquent court debt through 16 an established payment plan enumerated in section 421C.3, 17 subsection 4, paragraph “c”, is also not eligible for the 18 program. 19 4. Under the program the director of revenue is authorized 20 to forgive not more than fifty percent of any eligible debt 21 obligation due. 22 5. The program shall provide that upon written application 23 and payment of the agreed upon percentage of eligible debt 24 obligation due to the state, the state shall forgive any 25 remaining balance of eligible debt obligation due and shall not 26 seek any contempt or civil action, or criminal prosecution, 27 against the person related to the eligible debt obligation 28 forgiven under the program. Upon the forgiveness of the unpaid 29 portion of the eligible debt pursuant to this program, the case 30 in which the debt accrued shall be considered paid in full by 31 the state. 32 6. The written application shall contain all case numbers 33 associated with the eligible debt obligation due, and a general 34 description of such debt. 35 -17- LSB 6250SV (2) 83 jm/sc 17/ 29

S.F. 2383 7. Failure to pay the amount agreed upon by the date 1 specified shall bar the person’s participation in the program. 2 8. A person who participates in the program shall relinquish 3 all administrative and judicial rights to challenge the 4 imposition and the amount of eligible debt obligation owed. 5 9. If a driver’s license is reinstated as a result of 6 participating in the program, the person shall be required to 7 pay a reinstatement fee as provided in section 321.191, any 8 civil penalty assessed pursuant to section 321.218A, 321A.32A, 9 or 321J.17, and provide proof of financial responsibility 10 pursuant to section 321A.17, if otherwise required by law. 11 10. Upon paying the amount required under subsection 5, the 12 department of revenue shall provide the person with a certified 13 document detailing the case numbers paid in full under the 14 program. Any state department, agency, or branch shall, upon 15 the filing of a certified document detailing the cases paid 16 in full under the program, indicate in the records of the 17 department, agency, or branch that the case is in fact paid in 18 full with respect to the eligible debt obligations paid under 19 the program. 20 11. The director shall prepare and make available 21 debt amnesty application forms which contain requirements 22 for approval of an application. The director may deny an 23 application that is inconsistent with this section. 24 12. In order to promote and market this program, the 25 director of the Iowa lottery shall collaborate in the use of 26 the television, print, and radio advertising. 27 13. The department of revenue shall cooperate with the 28 state debt coordinator in administering this program and shall 29 cooperate with the state debt coordinator in establishing the 30 debt settlement program under section 421C.3. 31 14. The director of revenue shall establish an account and 32 shall deposit in the account all receipts received under the 33 program. Not later than the fifteenth day of each month, the 34 director shall deposit amounts received with the treasurer of 35 -18- LSB 6250SV (2) 83 jm/sc 18/ 29