Senate Study Bill 1223 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF REVENUE BILL) A BILL FOR An Act relating to the use of social security numbers for 1 purposes of administration of the tax and related laws by 2 the department of revenue and collection of property taxes 3 by counties. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1311XD (3) 86 mm/sc

S.F. _____ H.F. _____ Section 1. Section 421.17A, subsection 5, paragraph c, 1 subparagraph (1), Code 2015, is amended to read as follows: 2 (1) The name and social security number of the obligor. 3 Sec. 2. Section 421.17A, subsection 6, paragraph b, 4 subparagraph (1), Code 2015, is amended to read as follows: 5 (1) The name and social security number of the obligor. 6 Sec. 3. Section 421.17A, subsection 7, paragraph b, Code 7 2015, is amended to read as follows: 8 b. No sooner than fifteen days, and no later than twenty 9 days from the date the financial institution receives the 10 notice under subsection 5 , paragraph “b” , unless notified by the 11 facility of a challenge by the obligor or an account holder of 12 interest, forward the moneys encumbered to the facility with 13 the obligor’s name and social security number , the facility’s 14 account number for the obligor, and any other information 15 required in the notice. 16 Sec. 4. Section 421.17B, subsection 3, paragraph b, 17 subparagraph (1), Code 2015, is amended to read as follows: 18 (1) The name and social security number of the obligor. 19 Sec. 5. Section 421.17B, subsection 6, paragraph c, 20 subparagraph (1), Code 2015, is amended to read as follows: 21 (1) The name and social security number of the obligor. 22 Sec. 6. Section 421.17B, subsection 7, paragraph b, Code 23 2015, is amended to read as follows: 24 b. No sooner than ten days, and no later than twenty 25 days from the date the employer receives the notice of wage 26 assignment, unless notified by the facility of a challenge of 27 the wage assignment by the obligor, the employer shall begin 28 forwarding the obligor’s compensation, to the extent required 29 in the notice, to the facility with the obligor’s name and 30 social security number , the facility’s account number for the 31 obligor, and any other information required in the notice. 32 Sec. 7. Section 422.16, subsection 7, paragraph a, 33 subparagraph (2), Code 2015, is amended to read as follows: 34 (2) The name of the employee, nonresident, or other 35 -1- LSB 1311XD (3) 86 mm/sc 1/ 3

S.F. _____ H.F. _____ person and that person’s federal social security account 1 number, together with the last known address of such employee, 2 nonresident, or other person to whom wages have been paid 3 during such period. 4 Sec. 8. Section 427.9, Code 2015, is amended to read as 5 follows: 6 427.9 Suspension of taxes, assessments, and rates or charges, 7 including interest, fees, and costs. 8 If a person is a recipient of federal supplementary security 9 income or state supplementary assistance, as defined in 10 section 249.1 , or is a resident of a health care facility, 11 as defined by section 135C.1 , which is receiving payment 12 from the department of human services for the person’s care, 13 the person shall be deemed to be unable to contribute to the 14 public revenue. The director of human services shall notify 15 a person receiving such assistance of the tax suspension 16 provision and shall provide the person with evidence to 17 present to the appropriate county board of supervisors which 18 shows the person’s eligibility for tax suspension on parcels 19 owned, possessed, or upon which the person is paying taxes 20 as a purchaser under contract. The board of supervisors so 21 notified, without the filing of a petition and statement as 22 specified in section 427.8 , shall order the county treasurer to 23 suspend the collection of all the taxes, special assessments, 24 and rates or charges, including interest, fees, and costs, 25 assessed against the parcels and remaining unpaid by the person 26 or contractually payable by the person, for such time as the 27 person remains the owner or contractually prospective owner 28 of the parcels, and during the period the person receives 29 assistance as described in this section . The county board of 30 supervisors shall annually send to the department of human 31 services the names and social security numbers of persons 32 receiving a tax suspension pursuant to this section . The 33 department shall verify the continued eligibility for tax 34 suspension of each name on the list and shall return the list 35 -2- LSB 1311XD (3) 86 mm/sc 2/ 3

S.F. _____ H.F. _____ to the board of supervisors. The director of human services 1 shall advise the person that the person may apply for an 2 additional property tax credit pursuant to sections 425.16 to 3 425.39 which shall be credited against the amount of the taxes 4 suspended. 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 This bill relates to the use of social security numbers 9 for purposes of administration of the tax and related laws by 10 the department of revenue and collection of property taxes by 11 counties. 12 The bill removes the requirement that the department of 13 revenue, through its centralized debt collection facility, 14 include the social security number of an obligor (person 15 indebted to the state) on a notice of administrative levy or 16 notice of administrative wage assignment sent to a financial 17 institution, employer, or obligor and removes the requirement 18 that the financial institution or employer forward the 19 obligor’s social security number to the department when 20 complying with the administrative levy or administrative wage 21 assignment. 22 The bill removes the requirement that a withholding agent 23 include a person’s social security number on the annual wage 24 and withholding statement furnished to that person. 25 The bill removes the requirement that a county board of 26 supervisors send to the department of human services the 27 social security number of persons who received property tax 28 suspensions under Code section 427.9. A county board of 29 supervisors will now only be required to send the names of 30 those persons. 31 -3- LSB 1311XD (3) 86 mm/sc 3/ 3