Senate File 197 - Introduced SENATE FILE 197 BY WILHELM A BILL FOR An Act relating to the collection of a small claims judgment 1 by the centralized collection unit of the department of 2 revenue, and providing for a fee. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1683XS (4) 85 jm/sc
S.F. 197 Section 1. Section 421.17, subsection 27, paragraph a, Code 1 2013, is amended to read as follows: 2 a. To establish, administer, and make available a 3 centralized debt collection capability and procedure for 4 the use by a creditor in small claims court and any state 5 agency or local government entity including , but not limited 6 to , the department of revenue, along with other boards, 7 commissions, departments, and any other entity reported in 8 the Iowa comprehensive annual financial report, to collect 9 delinquent accounts, charges, fees, loans, taxes, or other 10 indebtedness owed to or being collected by the state. The 11 department’s collection facilities shall only be available for 12 use by other state agencies or local government entities for 13 their discretionary use when resources are available to the 14 director and subject to the director’s determination that use 15 of the procedure is feasible , except the facilities shall be 16 made available as provided in section 631.18 . The director 17 shall prescribe the appropriate form and manner in which this 18 information is to be submitted to the office of the department. 19 The obligations or indebtedness must be delinquent and not 20 subject to litigation, claim, appeal, or review pursuant to the 21 appropriate remedies of each state agency or local government 22 entity. 23 Sec. 2. NEW SECTION . 631.18 Collection of unpaid judgment 24 by department of revenue. 25 1. Ninety days after an affidavit of default has been 26 filed, the judicial branch shall assign any unpaid balance of 27 the judgment in the case to the centralized collection unit 28 of the department of revenue under section 421.17, subsection 29 17, to collect on the judgment on behalf of the party owed the 30 judgment. 31 2. The department of revenue may impose a fee to reflect the 32 cost of collecting on the judgment. The fee shall be deducted 33 first from any amounts collected by the centralized collection 34 unit. The remaining amounts shall be remitted to the clerk of 35 -1- LSB 1683XS (4) 85 jm/sc 1/ 2
S.F. 197 the district court for the county in which the debt is owed and 1 shall be applied to the unpaid balance of the judgment. 2 3. The judicial branch and the director of revenue shall 3 adopt rules to implement and administer this section. 4 EXPLANATION 5 This bill relates to the collection of a small claims 6 judgment by the centralized collection unit of the department 7 of revenue, and provides for a fee. 8 Under the bill, 90 days after an affidavit of default 9 has been filed on a judgment in the small claims docket and 10 district court lien book, the judicial branch shall assign any 11 unpaid balance of the judgment in the case to the centralized 12 collection unit of the department of revenue to collect on the 13 judgment on behalf of the party owed the judgment. 14 The centralized collection unit of the department of revenue 15 is required to use the unit to collect small claims judgments 16 as provided in the bill. 17 The bill allows the department of revenue to impose a fee to 18 reflect the cost of collection which shall be deducted from the 19 amounts collected. 20 The bill also requires that the judicial branch and the 21 director of revenue adopt rules to implement and administer the 22 bill. 23 -2- LSB 1683XS (4) 85 jm/sc 2/ 2