SF 197 (LSB 1683XS (4) 85)

SENATE FILE 197

BY  WILHELM

A BILL FOR

An Act relating to the collection of a small claims judgment by the centralized collection unit of the department of revenue, and providing for a fee.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 421.17, subsection 27, paragraph a, Code 2013, is amended to read as follows:
   a.  To establish, administer, and make available a centralized debt collection capability and procedure for the use by
 
a creditor in small claims court and any state agency or local government entity including, but not limited to, the department of revenue, along with other boards, commissions, departments, and any other entity reported in the Iowa comprehensive annual financial report, to collect delinquent accounts, charges, fees, loans, taxes, or other indebtedness owed to or being collected by the state. The department’s collection facilities shall only be available for use by other state agencies or local government entities for their discretionary use when resources are available to the director and subject to the director’s determination that use of the procedure is feasible, except the facilities shall be made available as provided in section 631.18. The director shall prescribe the appropriate form and manner in which this information is to be submitted to the office of the department. The obligations or indebtedness must be delinquent and not subject to litigation, claim, appeal, or review pursuant to the appropriate remedies of each state agency or local government entity.
    Sec. 2.  NEW SECTION.  631.18  Collection of unpaid judgment by department of revenue.
   1.  Ninety days after an affidavit of default has been filed, the judicial branch shall assign any unpaid balance of the judgment in the case to the centralized collection unit of the department of revenue under section 421.17, subsection 17, to collect on the judgment on behalf of the party owed the judgment.
   2.  The department of revenue may impose a fee to reflect the cost of collecting on the judgment. The fee shall be deducted first from any amounts collected by the centralized collection unit. The remaining amounts shall be remitted to the clerk of the district court for the county in which the debt is owed and shall be applied to the unpaid balance of the judgment.
   3.  The judicial branch and the director of revenue shall adopt rules to implement and administer this section.
EXPLANATION
   This bill relates to the collection of a small claims judgment by the centralized collection unit of the department of revenue, and provides for a fee.
   Under the bill, 90 days after an affidavit of default has been filed on a judgment in the small claims docket and district court lien book, the judicial branch shall assign any unpaid balance of the judgment in the case to the centralized collection unit of the department of revenue to collect on the judgment on behalf of the party owed the judgment.
   The centralized collection unit of the department of revenue is required to use the unit to collect small claims judgments as provided in the bill.
   The bill allows the department of revenue to impose a fee to reflect the cost of collection which shall be deducted from the amounts collected.
   The bill also requires that the judicial branch and the director of revenue adopt rules to implement and administer the bill.