House File 375 - Introduced HOUSE FILE 375 BY WATTS and ALONS A BILL FOR An Act establishing a driver’s license reimbursement fund and 1 providing for the allocation of revenues from the sales tax 2 on dyed special fuel, making an appropriation, and including 3 retroactive applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1953HH (8) 85 dea/nh

H.F. 375 Section 1. Section 312.2, Code 2013, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 18. The treasurer of state, before making 3 the allotments provided for in this section, shall credit 4 annually from the road use tax fund to the secondary road fund 5 the amount transferred to the road use tax fund pursuant to 6 section 321M.12, to be used for construction, maintenance, and 7 repair of secondary roads, including bridges. 8 Sec. 2. NEW SECTION . 321M.12 Driver’s license reimbursement 9 fund. 10 1. A driver’s license reimbursement fund is established in 11 the office of the treasurer of state under the control of the 12 department. The fund shall consist of any moneys appropriated 13 to the fund by the general assembly and the amount of sales tax 14 revenues transferred to the fund pursuant to section 423.2, 15 subsection 11, paragraph “a” , subparagraph (3). The moneys 16 in the fund are appropriated to the department to be used as 17 provided in this section. 18 2. Annually, on or after July 1 of each fiscal year, from 19 moneys available in the driver’s license reimbursement fund 20 on June 30 of the preceding fiscal year, the department shall 21 reimburse counties for costs incurred from the issuance and 22 renewal of driver’s licenses and nonoperator’s identification 23 cards by the county treasurer’s office during the preceding 24 fiscal year. The amount of the reimbursement for a county 25 shall be equal to the average total cost per card issued by all 26 county treasurer’s offices according to the most recent report 27 compiled by the auditor of state pursuant to section 321M.9, 28 subsection 4, minus seven dollars, multiplied by the total 29 number of cards issued by the county treasurer’s office during 30 the preceding fiscal year. 31 3. Any moneys that were available in the fund on June 30 32 of the preceding fiscal year which remain in the fund after 33 the distribution provided for under subsection 2 shall be 34 transferred to the road use tax fund. 35 -1- LSB 1953HH (8) 85 dea/nh 1/ 3

H.F. 375 Sec. 3. Section 423.2, subsection 11, paragraph a, Code 1 2013, is amended by adding the following new subparagraph: 2 NEW SUBPARAGRAPH . (3) Subsequent to the deposit into the 3 general fund of the state, the director shall transfer an 4 amount equal to the revenues collected from the sales tax on 5 dyed special fuel to the driver’s license reimbursement fund 6 created in section 321M.12. 7 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 8 retroactively to July 1, 2012, for sales tax revenues collected 9 on or after that date. 10 EXPLANATION 11 There are currently 81 county treasurer’s offices that 12 are authorized to issue driver’s licenses and nonoperator’s 13 identification cards in Iowa. The county treasurers retain 14 for deposit in the county general fund $7 of the fee from each 15 driver’s license or nonoperator’s identification card issued by 16 the county treasurer’s office. 17 This bill establishes a driver’s license reimbursement 18 fund to be administered by the department of transportation. 19 Moneys in the fund are appropriated to the department to be 20 used to reimburse county treasurers for costs relating to the 21 issuance and renewal of driver’s licenses and nonoperator’s 22 identification cards which exceed the amount retained by 23 the county treasurers from fees. The reimbursement is to 24 occur annually, on or after July 1, from moneys available in 25 the driver’s license reimbursement fund on June 30 of the 26 preceding fiscal year. The amount of the reimbursement for a 27 county shall be determined by subtracting $7 from the average 28 cost per card issued by all county treasurer’s offices, as 29 stated in the most recent report on driver’s license issuance 30 compiled by the auditor of state, and multiplying the remainder 31 by the total number of driver’s licenses and nonoperator’s 32 identification cards issued by the county treasurer’s office 33 during the preceding fiscal year. Any moneys remaining in the 34 driver’s license reimbursement fund from the previous fiscal 35 -2- LSB 1953HH (8) 85 dea/nh 2/ 3

H.F. 375 year which were not used to reimburse county treasurers are to 1 be transferred to the road use tax fund and credited to the 2 secondary road fund according to the current formula for such 3 distributions. The moneys are to be used by counties for the 4 construction, maintenance, and repair of secondary roads and 5 bridges. 6 The bill directs the department of revenue to transfer the 7 amount of revenue collected from the sales tax on dyed special 8 fuel, which is currently deposited in the general fund of the 9 state, to the driver’s license reimbursement fund. 10 The bill applies retroactively for sales tax collected on or 11 after July 1, 2012. 12 -3- LSB 1953HH (8) 85 dea/nh 3/ 3