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
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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
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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
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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
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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
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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
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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
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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:
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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
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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.
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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
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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
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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.
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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
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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
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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
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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
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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:
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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
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delinquent.
The
amount
of
the
court
debt
deemed
delinquent
1
and
the
collection
fee
shall
be
owed
by
and
collected
from
the
2
defendant.
The
collection
fee
shall
be
used
to
compensate
the
3
private
collection
designee.
The
contract
may
also
assess
the
4
private
collection
designee
an
initial
fee
for
entering
into
5
the
contract.
6
Sec.
23.
Section
909.3,
subsection
1,
Code
2009,
is
amended
7
to
read
as
follows:
8
1.
All
fines
imposed
by
the
court
shall
be
paid
on
the
day
9
the
fine
is
imposed
,
and
the
person
shall
be
instructed
to
pay
10
such
fines
with
the
office
of
the
clerk
of
the
district
court
11
on
the
date
of
imposition
.
12
Sec.
24.
DEBT
AMNESTY
PROGRAM.
13
1.
A
debt
amnesty
program
is
established
within
the
14
department
of
revenue
for
a
period
beginning
July
1,
2010,
15
through
December
31,
2010,
for
any
debt
obligation
eligible
16
under
section
421C.3.
17
2.
A
person
who
is
in
jail
or
prison,
or
who
is
under
18
supervision,
is
not
eligible
for
the
program
during
the
period
19
of
incarceration
or
supervision.
20
3.
A
person
who
is
paying
delinquent
court
debt
through
21
an
established
payment
plan
enumerated
in
section
421C.3,
22
subsection
4,
paragraph
“c”,
is
also
not
eligible
for
the
23
program.
24
4.
Under
the
program
the
director
of
revenue
is
authorized
25
to
forgive
not
more
than
fifty
percent
of
any
eligible
debt
26
obligation
due.
27
5.
The
program
shall
provide
that
upon
written
application
28
and
payment
of
the
agreed
upon
percentage
of
eligible
debt
29
obligation
due
to
the
state,
the
state
shall
forgive
any
30
remaining
balance
of
eligible
debt
obligation
due
and
shall
not
31
seek
any
contempt
or
civil
action,
or
criminal
prosecution,
32
against
the
person
related
to
the
eligible
debt
obligation
33
forgiven
under
the
program.
Upon
the
forgiveness
of
the
unpaid
34
portion
of
the
eligible
debt
pursuant
to
this
program,
the
case
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in
which
the
debt
accrued
shall
be
considered
paid
in
full
by
1
the
state.
2
6.
The
written
application
shall
contain
all
case
numbers
3
associated
with
the
eligible
debt
obligation
due,
and
a
general
4
description
of
such
debt.
5
7.
Failure
to
pay
the
amount
agreed
upon
by
the
date
6
specified
shall
bar
the
person’s
participation
in
the
program.
7
8.
A
person
who
participates
in
the
program
shall
relinquish
8
all
administrative
and
judicial
rights
to
challenge
the
9
imposition
and
the
amount
of
eligible
debt
obligation
owed.
10
9.
If
a
driver’s
license
is
reinstated
as
a
result
of
11
participating
in
the
program,
the
person
shall
be
required
to
12
pay
a
reinstatement
fee
as
provided
in
section
321.191,
any
13
civil
penalty
assessed
pursuant
to
section
321.218A,
321A.32A,
14
or
321J.17,
and
provide
proof
of
financial
responsibility
15
pursuant
to
section
321A.17,
if
otherwise
required
by
law.
16
10.
Upon
paying
the
amount
required
under
subsection
5,
the
17
department
of
revenue
shall
provide
the
person
with
a
certified
18
document
detailing
the
case
numbers
paid
in
full
under
the
19
program.
Any
state
department,
agency,
or
branch
shall,
upon
20
the
filing
of
a
certified
document
detailing
the
cases
paid
21
in
full
under
the
program,
indicate
in
the
records
of
the
22
department,
agency,
or
branch
that
the
case
is
in
fact
paid
in
23
full
with
respect
to
the
eligible
debt
obligations
paid
under
24
the
program.
25
11.
The
director
shall
prepare
and
make
available
26
debt
amnesty
application
forms
which
contain
requirements
27
for
approval
of
an
application.
The
director
may
deny
an
28
application
that
is
inconsistent
with
this
section.
29
12.
In
order
to
promote
and
market
this
program,
the
30
director
of
the
Iowa
lottery
shall
collaborate
in
the
use
of
31
the
television,
print,
and
radio
advertising.
32
13.
The
department
of
revenue
shall
cooperate
with
the
33
state
debt
coordinator
in
administering
this
program
and
shall
34
cooperate
with
the
state
debt
coordinator
in
establishing
the
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debt
settlement
program
under
section
421C.3.
1
14.
The
director
of
revenue
shall
establish
an
account
and
2
shall
deposit
in
the
account
all
receipts
received
under
the
3
program.
Not
later
than
the
fifteenth
day
of
each
month,
the
4
director
shall
deposit
amounts
received
with
the
treasurer
of
5
state
for
deposit
in
the
general
fund
of
the
state.
6
15.
The
department
of
revenue
by
January
15,
2011,
shall
7
provide
a
report
to
the
chairpersons
and
ranking
members
8
of
the
senate
and
house
committee
on
appropriations
and
to
9
the
legislative
services
agency
that
details
the
amounts
10
collected
under
the
program,
including
the
classification
of
11
debt
collected
and
the
county
of
residence
of
persons
granted
12
amnesty.
13
Sec.
25.
COLLECTION
OF
COURT
DEBT
BY
COUNTY
TREASURERS
——
14
INTENT
——
STUDY.
15
1.
It
is
the
intent
of
the
general
assembly
to
implement
the
16
collection
of
court
debt
on
behalf
of
the
clerk
of
the
district
17
court
at
the
time
a
person
renews
a
motor
vehicle
registration
18
beginning
July
1,
2011.
19
2.
The
state
court
administrator,
or
the
state
court
20
administrator’s
designee,
in
cooperation
with
the
Iowa
state
21
county
treasurers
association
shall
develop
a
plan
to
allow
22
county
treasurers
to
collect
restitution
and
delinquent
court
23
debt
on
behalf
of
the
clerk
of
the
district
court
at
the
time
a
24
person
appears
before
the
county
treasurer
to
renew
a
vehicle
25
registration.
The
state
court
administrator
shall
submit
26
a
report
of
the
plan
to
the
general
assembly
on
or
before
27
December
1,
2010.
28
Sec.
26.
EFFECTIVE
DATE.
The
sections
of
this
Act
enacting
29
sections
421C.3
and
421C.4
take
effect
January
1,
2011.
30
EXPLANATION
31
This
bill
establishes
a
state
debt
coordinator
and
relates
32
to
the
collection
of
state
debt.
33
The
bill
changes
the
priority
of
payment
under
the
setoff
34
program
in
Code
section
8A.504
if
multiple
claims
exist
from
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various
state
agencies.
Under
the
bill,
claims
filed
by
the
1
clerk
of
the
district
court
shall
be
paid
prior
to
claims
from
2
the
college
student
aid
commission
and
claims
filed
by
the
3
investigations
division
of
the
department
of
inspections
and
4
appeals.
5
The
bill
allows
a
county
treasurer
to
collect
delinquent
6
state
taxes
from
a
person
who
is
applying
for
renewal
of
a
7
motor
vehicle
registration.
Current
law
requires
a
county
8
treasurer
to
refuse
to
renew
a
vehicle
registration
if
the
9
treasurer
knows
that
the
person
has
a
delinquent
account,
10
charge,
fee,
loan,
taxes,
or
other
indebtedness
owed
to
or
11
being
collected
by
the
state.
The
person
has
to
address
the
12
debt
before
the
county
treasurer
can
renew
the
registration
13
of
the
person’s
vehicle.
The
bill
provides
a
process
for
14
collection
of
delinquent
taxes,
including
penalties
and
15
interest,
by
the
county
treasurer
in
cooperation
with
the
16
department
of
revenue.
The
county
treasurer
may
collect
the
17
amount
owed
prior
to
issuing
the
registration
renewal.
The
18
treasurer
is
required
to
update
the
vehicle
records
through
the
19
distributed
teleprocessing
network
on
a
daily
basis
for
persons
20
who
have
paid
taxes
to
the
county
treasurer
and
forward
the
21
amounts
collected
to
the
department
of
revenue.
22
The
bill
allows
the
department
of
revenue
to
give
county
23
treasurers
access
to
confidential
information
required
for
the
24
collection
of
delinquent
taxes.
County
treasurers
are
subject
25
to
requirements
and
penalties
of
confidentiality
laws
regarding
26
tax
or
indebtedness
information.
The
bill
requires
the
27
director
of
revenue
to
adopt
rules
to
implement
the
collection
28
of
delinquent
taxes
by
county
treasurers.
29
If
an
applicant
for
renewal
of
a
vehicle
registration
30
chooses
to
make
payment
to
the
county
treasurer
for
delinquent
31
taxes,
the
applicant
is
required
to
pay
a
$5
processing
fee
to
32
the
county
treasurer,
which
is
to
be
deposited
in
the
county
33
general
fund.
34
The
bill
allows
the
centralized
collection
unit
of
the
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department
of
revenue
to
lift
the
motor
vehicle
registration
1
hold
on
a
person
who
enters
a
payment
plan
with
the
unit
to
pay
2
a
court
debt
pursuant
to
Code
section
602.8107,
subsection
3.
3
The
bill
allows
the
department
of
revenue
to
establish
a
data
4
matching
system
with
financial
institutions
to
help
identify
5
and
locate
persons
who
have
a
debt
obligation
with
the
state.
6
The
bill
allows
the
department
of
revenue
to
subpoena
7
certain
records
held
by
public
and
private
utilities,
to
the
8
extent
permissible
by
federal
law,
to
be
used
to
identify
and
9
locate
a
person
who
has
a
debt
obligation
placed
with
the
10
centralized
collection
unit
of
the
department.
11
The
bill
permits
a
city
to
contract
with
a
private
collection
12
designee
for
the
collection
of
debts
owed
to
a
city
related
to
13
criminal
or
civil
penalties
assessed
by
the
city.
The
bill
14
permits
the
private
collection
designee
contracting
with
the
15
city
to
charge
a
collection
fee
of
up
to
25
percent
of
the
debt.
16
The
bill
permits
the
fee
to
be
added
to
the
amount
of
the
debt
17
deemed
delinquent
and
to
be
used
to
compensate
the
private
18
collection
designee.
19
The
bill
establishes
a
state
debt
coordinator
within
20
the
department
of
revenue
for
administrative
and
budgetary
21
purposes.
The
governor
shall
appoint
the
coordinator,
subject
22
to
senate
confirmation.
The
bill
requires
the
coordinator
to
23
possess
an
expert
knowledge
of
and
skills
in
the
field
of
debt
24
collection,
and
have
an
intricate
understanding
of
the
workings
25
of
state
government.
The
term
of
office
is
for
four
years.
26
The
duties
of
the
coordinator
include
reviewing
the
debt
27
collection
practices
of
each
branch
of
state
government,
except
28
the
practices
related
to
the
collection
of
a
delinquent
child
29
support
obligation.
The
duties
also
include
coordinating
30
the
collection
efforts
of
each
branch
of
state
government,
31
making
recommendations
to
the
general
assembly
to
increase
32
debt
collection
efficiencies
and
practices,
filing
a
notice
33
of
a
lien
in
certain
civil
court
actions,
and
managing
the
34
debt
settlement
program
created
in
the
bill.
The
bill
also
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permits
the
coordinator
to
appoint
personnel
deemed
necessary
1
to
administer
the
office’s
functions,
adopt
rules,
and
prepare
2
an
annual
budget.
3
Under
the
bill,
when
a
debt
obligation
is
owed
the
state
the
4
state
debt
coordinator
shall
have
a
lien,
to
the
extent
of
the
5
debt
obligation
owed,
upon
all
monetary
claims
which
the
debtor
6
may
have
against
third
parties.
A
lien
is
not
effective
under
7
this
provision
unless
the
state
debt
coordinator
files
a
notice
8
of
lien
with
the
clerk
of
the
district
court
in
the
county
9
where
the
debtor
resides
and
with
the
debtor’s
attorney,
if
10
applicable.
The
bill
requires
the
notice
of
lien
to
be
filed
11
before
a
third
party
has
concluded
a
final
settlement
with
12
the
debtor,
the
debtor’s
attorney,
or
other
representative.
13
The
bill
also
requires
a
third
party
to
obtain
a
written
14
determination
from
the
state
debt
coordinator
concerning
the
15
amount
of
the
lien
before
a
settlement
is
deemed
final.
A
16
compromise,
including
but
not
limited
to
a
settlement,
waiver
17
or
release,
of
a
debt
pursuant
to
the
bill
does
not
defeat
the
18
state
debt
coordinator’s
lien
except
upon
written
agreement
by
19
the
coordinator
or
the
coordinator’s
designee
and
the
debtor.
20
Under
the
bill,
if
the
state
debt
coordinator
files
lien
in
21
a
civil
proceeding
and
a
judgment
is
entered
or
a
settlement
22
is
achieved
by
the
debtor,
the
court
costs
and
reasonable
23
attorney
fees
shall
first
be
deducted
from
this
total
judgment
24
or
settlement.
The
bill
requires
one-third
of
the
remaining
25
balance
to
be
deducted
and
paid
to
the
debtor.
The
bill
26
requires
the
remaining
balance
to
be
used
to
pay
the
lien,
and
27
if
there
is
a
remaining
balance
after
the
payment
of
the
lien,
28
the
remainder
shall
be
paid
to
the
debtor.
29
Prior
to
negotiating
a
settlement
offer,
the
bill
requires
30
an
insurer
or
attorney
representing
a
debtor
on
a
claim
upon
31
which
the
state
debt
coordinator
has
a
lien
to
notify
the
state
32
debt
coordinator
of
the
claim
if
the
insurer
or
attorney
has
33
actual
knowledge
of
the
lien.
If
the
state
debt
coordinator
34
mails
notification
of
the
lien
to
any
insurer
or
other
third
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party
and
any
attorney
for
the
debtor,
if
applicable.
1
The
bill
permits
the
state
debt
coordinator
to
enforce
its
2
lien
by
a
civil
action
against
any
liable
third
party
if
a
3
settlement
was
paid
to
the
debtor
without
notifying
the
state
4
debt
coordinator
as
provided
in
this
section.
5
The
bill
permits
the
state
debt
coordinator
to
have
access
6
to
all
state
debt
collection
information,
excluding
delinquent
7
child
support
obligations,
and
including
the
Iowa
court
8
information
system
for
the
purpose
of
identifying
personal
9
identifying
information
for
the
purpose
of
coordinating
debt
10
collection
efforts.
11
The
bill
creates
a
debt
settlement
program
within
the
office
12
of
the
state
debt
coordinator.
The
provisions
creating
the
13
debt
settlement
program
take
effect
January
1,
2011.
The
14
program
applies
to
all
debt
obligations
owed
to
the
state
that
15
are
classified
as
court
debt
pursuant
to
section
602.8107,
16
except
that
the
following
debt
obligations
are
ineligible
for
17
the
program:
debt
that
has
been
assessed
less
than
four
years
18
from
the
date
of
the
application;
restitution
owed
to
a
victim
19
as
defined
in
Code
section
910.1;
civil
penalties
assessed
20
pursuant
to
Code
section
321.218A,
321A.32A,
or
321J.17;
and
21
jail
fees
charged
pursuant
to
section
356.7.
22
The
bill
provides
that
a
person
is
not
eligible
for
the
23
debt
settlement
program
unless
the
person
has
an
income
level
24
at
or
below
200
percent
of
the
United
States
poverty
level
as
25
defined
by
the
most
recently
revised
poverty
income
guidelines
26
published
by
the
United
States
department
of
health
and
human
27
services.
A
person
who
is
incarcerated
or
under
supervision
28
is
also
not
eligible
for
the
program
while
the
person
is
29
incarcerated
or
under
supervision.
30
The
bill
prohibits
the
state
debt
coordinator
from
forgiving
31
more
than
50
percent
of
all
eligible
debt
obligations
due.
32
The
bill
provides
that
upon
written
application
and
payment
33
of
the
agreed
upon
percentage
of
eligible
debt
obligation
due
34
to
the
state,
the
state
shall
forgive
any
remaining
balance
of
35
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eligible
debt
obligation
due
and
shall
not
seek
any
contempt
or
1
civil
action
or
criminal
prosecution
against
the
person
related
2
to
the
eligible
debt
obligation
forgiven
under
the
program.
3
Upon
the
forgiveness
of
the
remaining
balance
of
the
eligible
4
debt
pursuant
to
this
program,
the
case
under
which
the
debt
5
accrued
shall
be
considered
by
the
state
as
paid
in
full.
6
The
bill
requires
the
written
application
to
contain
all
7
case
numbers
associated
with
the
eligible
debt
obligation
due,
8
and
a
general
description
of
such
debt.
9
The
bill
provides
that
upon
failure
to
pay
the
amount
10
agreed
upon
by
the
date
specified
shall
bar
the
person
from
11
the
program
for
life.
The
bill
prohibits
a
person
from
12
participating
in
the
program
more
than
once
in
the
person’s
13
lifetime.
14
The
bill
requires
a
person
participating
in
the
program
to
15
relinquish
all
administrative
and
judicial
rights
to
challenge
16
the
imposition
and
the
amount
of
the
eligible
debt
obligation
17
owed.
18
The
bill
provides
that
a
person
paying
court
debt
through
an
19
established
payment
plan
with
the
clerk
of
the
district
court,
20
the
centralized
collection
unit
of
the
department
of
revenue
21
or
its
designee,
a
county
attorney
or
the
county
attorney’s
22
designee,
or
a
private
collection
designee
is
ineligible
for
23
the
program.
24
Under
the
bill,
if
a
driver’s
license
is
reinstated
as
a
25
result
of
participating
in
the
program,
the
person
shall
be
26
required
to
pay
a
reinstatement
fee
as
provided
in
Code
section
27
321.191,
any
civil
penalty
assessed
pursuant
to
Code
section
28
321.218A,
321A.32A,
or
321J.17,
and
provide
proof
of
financial
29
responsibility
pursuant
to
Code
section
321A.17,
if
otherwise
30
required
by
law.
31
Upon
paying
the
amount
of
eligible
debt
agreed
upon
under
the
32
bill,
the
state
debt
coordinator
shall
provide
the
person
with
33
a
certified
document
detailing
the
case
numbers
paid
in
full
34
under
the
program.
Any
state
department,
agency,
or
branch
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shall,
upon
the
filing
of
a
certified
document
detailing
the
1
cases
paid
in
full
under
the
program,
indicate
in
the
records
2
of
the
department,
agency,
or
branch
that
the
case
is
in
fact
3
paid
in
full
with
respect
to
the
eligible
debt
obligations
paid
4
under
the
program.
5
The
bill
requires
the
state
debt
coordinator
to
prepare
and
6
make
available
debt
settlement
application
forms
which
contain
7
requirements
for
approval
of
an
application.
8
The
bill
requires
the
director
of
revenue
to
establish
an
9
account
and
to
deposit
in
the
account
all
receipts
received
10
under
the
program.
Not
later
than
the
15th
day
of
each
month,
11
the
bill
requires
the
director
of
revenue
to
deposit
amounts
12
received
with
the
treasurer
of
state
for
deposit
in
the
general
13
fund
of
the
state.
14
The
bill
requires
the
state
debt
coordinator
to
submit
an
15
annual
report
by
January
1
to
the
chairpersons
and
ranking
16
members
of
the
joint
appropriations
subcommittee
on
justice
17
system
and
the
legislative
services
agency,
detailing
the
18
amount
of
debt
obligations
settled
under
the
program
including
19
the
classification
of
the
debt
settled,
and
the
county
of
20
residence
of
persons
who
had
debt
settled
under
the
program,
21
including
the
county
of
residence
for
persons
who
settled
debt
22
with
a
debt
settlement
designee
as
provided
in
Code
section
23
421C.4.
24
The
bill
permits
the
centralized
collection
unit
of
25
the
department
of
revenue
or
a
county
attorney
collecting
26
delinquent
court
debt
to
act
as
the
state
debt
coordinator’s
27
designee
under
the
debt
settlement
program.
If
the
centralized
28
collection
unit
of
the
department
of
revenue
or
a
county
29
attorney
serves
as
the
state
debt
coordinator’s
designee,
the
30
procedures
of
the
program
established
in
new
Code
section
31
421C.3
apply
to
the
designee
except
as
otherwise
provided
in
32
the
bill.
33
If
a
county
attorney
desires
to
act
as
the
state
debt
34
coordinator’s
designee,
the
bill
requires
a
county
attorney
or
35
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county
attorneys
acting
under
an
agreement
pursuant
to
Code
1
chapter
28E
to
make
application
to
the
state
debt
coordinator
2
requesting
authority
to
act
as
the
state
debt
coordinator’s
3
designee.
The
state
debt
coordinator
shall
approve
each
4
application,
upon
a
showing
of
commitment
to
collect
delinquent
5
court
debt
pursuant
to
Code
section
602.8107,
subsection
4,
and
6
upon
reaffirmation
to
continue
collection
efforts
pursuant
to
7
Code
section
602.8107,
subsection
4.
8
The
bill
provides
that
if
a
county
attorney
is
approved
to
9
act
as
the
state
debt
coordinator’s
designee
under
the
debt
10
settlement
program,
any
eligible
court
debt
settled
that
is
11
more
than
two
years
old
shall
be
deposited
with
the
clerk
12
of
the
district
court
as
provided
in
Code
section
602.8107,
13
subsection
4,
and
distributed
to
the
county
in
accordance
14
with
Code
section
602.8107,
subsection
4.
For
purposes
15
of
calculating
the
amounts
distributed
to
the
county,
the
16
bill
requires
the
amounts
collected
by
the
county
attorney
17
when
acting
as
the
state
debt
coordinator
designee
shall
18
be
considered
as
any
other
debt
collected
under
the
county
19
attorney
collection
program
pursuant
to
Code
section
602.8107,
20
subsection
4.
The
bill
requires
the
remainder
collected
by
21
the
county
attorney
acting
as
the
state
debt
coordinator’s
22
designee
to
be
remitted
to
the
state
court
administrator
for
23
distribution
under
Code
section
602.8108.
24
For
those
counties
where
a
county
attorney
is
not
acting
as
25
the
state
debt
coordinator’s
designee
under
the
debt
settlement
26
program,
or
for
cases
the
centralized
collection
unit
is
27
collecting
upon,
the
bill
permits
the
centralized
collection
28
unit
of
the
department
of
revenue
to
serve
as
the
state
debt
29
coordinator’s
designee.
30
The
bill
also
creates
a
debt
amnesty
program
that
mirrors
31
the
debt
settlement
program
except
the
debt
amnesty
program
32
is
established
within
the
department
of
revenue
beginning
on
33
July
1,
2010,
through
December
31,
2010,
and
there
is
no
income
34
restriction
for
persons
who
want
to
participate
in
the
program.
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The
bill
requires
the
department
of
revenue
by
January
15,
1
2011,
to
provide
a
report
to
the
chairpersons
and
ranking
2
members
of
the
senate
and
house
committee
on
appropriations,
3
and
to
the
legislative
services
agency,
that
details
4
the
amounts
collected
under
the
program
including
the
5
classification
of
debt
collected,
and
the
county
of
residence
6
of
persons
granted
amnesty.
7
Under
the
bill,
beginning
July
1,
2010,
and
every
fiscal
year
8
thereafter,
amounts
collected
and
distributed
pursuant
to
the
9
county
attorney
collection
program
shall
be
equal
to
or
greater
10
than
$25,000
for
each
county
or
$25,000
in
the
aggregate
for
11
counties
that
have
entered
into
an
agreement
pursuant
to
Code
12
chapter
28E.
If
a
county
or
counties
which
have
entered
into
a
13
Code
chapter
28E
agreement
fail
to
meet
the
minimum
threshold
14
established
pursuant
to
the
bill,
the
county
or
counties
15
under
the
Code
chapter
28E
agreement
shall
be
ineligible
to
16
participate
in
the
county
attorney
collection
program
the
17
following
fiscal
year.
In
the
event
a
county
is
ineligible
18
to
collect
under
the
county
attorney
collection
program,
the
19
county
may
apply
to
the
state
debt
coordinator
to
reenter
the
20
county
attorney
collection
program
following
the
fiscal
year
21
of
ineligibility.
22
The
bill
requires
the
judicial
branch
to
assign
all
23
delinquent
court
debt
cases
to
the
centralized
debt
collection
24
unit
of
the
department
of
revenue
for
a
period
of
120
days
25
after
the
debt
is
deemed
delinquent
unless
the
county
attorney
26
has
committed
to
collecting
the
delinquent
court
in
debt
in
the
27
county.
Currently,
the
judicial
branch
may
assign
delinquent
28
court
debt
to
the
centralized
collection
unit
for
a
period
of
29
60
days.
Current
law
and
the
bill
permit
the
county
attorney
30
to
collect
delinquent
court
debt
60
days
after
the
debt
is
31
deemed
delinquent.
32
The
bill
strikes
the
requirement
that
the
centralized
33
collection
unit
or
the
county
attorney
file
with
the
clerk
of
34
the
district
court
a
notice
of
the
satisfaction
of
each
portion
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of
the
court
debt
paid
under
the
centralized
collection
unit
or
1
county
attorney
collection
program.
2
The
bill
also
requires
the
judicial
branch
to
contract
with
3
a
private
collection
designee
for
the
collection
of
delinquent
4
court
debt
60
days
after
the
debt
was
deemed
delinquent
if
the
5
county
attorney
is
not
collecting
the
court
debt
in
the
case.
6
The
bill
establishes
the
collection
fee
for
the
private
7
collection
designee
at
up
to
25
percent
of
the
total
amount
8
of
delinquent
court
debt
owed.
Current
law
establishes
9
the
collection
fee
at
25
percent
of
the
total
amount
of
the
10
delinquent
court
debt
owed.
11
The
bill
expresses
the
general
assembly’s
intent
to
12
implement
the
collection
of
court
debt
at
the
time
a
person
13
renews
a
motor
vehicle
registration
beginning
July
1,
2011.
14
The
state
court
administrator,
in
cooperation
with
the
Iowa
15
state
county
treasurers
association,
is
required
to
develop
16
a
plan
to
allow
county
treasurers
to
collect
restitution
and
17
delinquent
court
debt
on
behalf
of
a
clerk
of
the
district
18
court
at
the
time
a
person
renews
a
vehicle
registration.
A
19
report
to
the
general
assembly
regarding
the
plan
is
due
on
or
20
before
December
1,
2010.
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