S.F. _____ Section 1. Section 321.210B, subsection 1, Code 2016, is 1 amended to read as follows: 2 1. a. If a person’s fine, penalty, surcharge, or court 3 cost is deemed delinquent as provided in section 602.8107, 4 subsection 2 , and the person’s driver’s license has been 5 suspended or is in the process of being suspended pursuant 6 to section 321.210A , the person may execute an installment 7 agreement as defined in section 602.8107 with the county 8 attorney, the county attorney’s designee, or the private 9 collection designee under contract with the judicial branch 10 pursuant to section 602.8107, subsection 5 , to pay the 11 delinquent amount and the civil penalty assessed in subsection 12 7 in installments. Prior to execution of the installment 13 agreement, the person shall provide the county attorney, the 14 county attorney’s designee, or the private collection designee 15 with a financial statement in order for the parties to the 16 agreement to determine the amount of the installment payments. 17 b. Cases involving court debt assigned to a county attorney, 18 a county attorney’s designee, or the private collection 19 designee shall remain so assigned. 20 Sec. 2. Section 321.210B, subsection 4, Code 2016, is 21 amended to read as follows: 22 4. Upon receipt of an executed installment agreement 23 and after the first installment payment to the clerk of 24 the district court , the clerk of the district court shall 25 report the receipt of the executed installment agreement to 26 the department of transportation , and the department shall 27 immediately reinstate the person’s license under section 28 321.210A for a case included in the executed installment 29 agreement . 30 Sec. 3. Section 321.210B, subsection 12, Code 2016, is 31 amended by striking the subsection. 32 Sec. 4. Section 602.8107, subsection 3, paragraphs a and c, 33 Code 2016, are amended to read as follows: 34 a. Thirty days after court debt has been assessed and full 35 -1- LSB 5979XC (14) 86 jm/rj 1/ 12

S.F. _____ payment has not been received , or if an installment payment is 1 not received within thirty days after the date it is due, the 2 judicial branch shall assign a case to the private collection 3 designee under contract with the judicial branch pursuant to 4 subsection 5 to collect debts owed to the clerk of the district 5 court , unless the case has been assigned to the county attorney 6 under paragraph “c” . 7 c. If Thirty days after court debt has been assessed and 8 full payment has not been received, or if an installment 9 payment is not received within thirty days after the date it 10 is due, and if a county attorney has filed with the clerk 11 of the district court a notice of full commitment to collect 12 delinquent court debt pursuant to subsection 4 , the court 13 debt in a case shall be assigned after sixty days to the 14 county attorney as provided in subsection 4 , if the court debt 15 in a case is not part of an installment agreement with the 16 private collection designee under contract with the judicial 17 branch pursuant to subsection 5 . The judicial branch shall 18 assign cases with delinquent court debt to a county attorney 19 in the same format and with the same frequency as cases with 20 delinquent court debt are assigned to the private collection 21 designee under paragraph “a” , and a county attorney shall not 22 be required to file an individual notice of full commitment 23 to collect delinquent court debt for each assigned case. If 24 the county attorney or the county attorney’s designee, while 25 collecting delinquent court debt pursuant to subsection 4, 26 determines that a person owes additional court debt for which a 27 case has not been assigned by the judicial branch, the county 28 attorney or the county attorney’s designee shall notify the 29 clerk of the district court of the appropriate case numbers 30 and the judicial branch shall assign these cases to the 31 county attorney for collection if the additional court debt is 32 delinquent. 33 Sec. 5. Section 602.8107, subsection 4, Code 2016, is 34 amended to read as follows: 35 -2- LSB 5979XC (14) 86 jm/rj 2/ 12

S.F. _____ 4. County attorney collection. The county attorney or 1 the county attorney’s designee may collect court debt sixty 2 days after the court debt is deemed delinquent pursuant to 3 subsection 2 . In order to receive a percentage of the amounts 4 collected pursuant to this subsection , the county attorney 5 must first file annually with the clerk of the district court 6 on or before July 1 of the first year the county attorney 7 collects court debt under this subsection, a notice of full 8 commitment to collect delinquent court debt , and a memorandum 9 of understanding with the state court administrator for all 10 cases assigned to the county for collection by the court. The 11 annual notice shall contain a list of procedures which will 12 be initiated by the county attorney. For a county attorney 13 filing a notice of full commitment for the first time, the 14 cases involving delinquent court debt previously assigned 15 to the private collection designee shall remain assigned to 16 the private collection designee. Cases involving delinquent 17 court debt assigned to the county attorney after the filing 18 of a notice of full commitment by the county attorney shall 19 remain assigned to the county attorney. A county attorney who 20 chooses to discontinue collection of delinquent court debt 21 shall file with the clerk of the district court on or before 22 May 15 a notice of the intent to cease collection of delinquent 23 court debt at the start of the next fiscal year. If a county 24 attorney ceases collection efforts, or if the state court 25 administrator deems that a county attorney collections program 26 has become ineligible to collect as specified in paragraph 27 “f” , all cases involving delinquent court debt assigned to 28 the county attorney, including court debt associated with any 29 existing installment agreement, shall remain assigned to the 30 county for collection unless an installment payment becomes 31 delinquent, after which the portion of the cases involving 32 all the remaining delinquent court debt associated with the 33 installment agreement shall be transferred to the private 34 collection designee for collection on July 1. 35 -3- LSB 5979XC (14) 86 jm/rj 3/ 12

S.F. _____ a. This subsection does not apply to amounts collected for 1 victim restitution, the victim compensation fund, the criminal 2 penalty surcharge, sex offender civil penalty, drug abuse 3 resistance education surcharge, the law enforcement initiative 4 surcharge, county enforcement surcharge, amounts collected as 5 a result of procedures initiated under subsection 5 or under 6 section 8A.504 , or fees charged pursuant to section 356.7 . 7 b. Amounts collected by the county attorney or the county 8 attorney’s designee shall be distributed in accordance with 9 paragraphs “c” and “d” . 10 c. (1) Forty Twenty-eight percent of the amounts collected 11 by the county attorney or the person procured or designated by 12 the county attorney shall be deposited in the general fund of 13 the county if the county attorney has filed the notice required 14 by this subsection , unless the county attorney has discontinued 15 collection efforts on a particular delinquent amount. 16 (2) The remaining sixty seventy-two percent shall be 17 paid to the clerk of the district court each fiscal year for 18 distribution under section 602.8108 . However, if such amount, 19 when added to the amount deposited into the general fund of 20 the county pursuant to subparagraph (1), exceeds the following 21 applicable threshold amount, the excess shall be distributed 22 as provided in paragraph “d” : 23 (a) For a county with a population greater than one hundred 24 fifty thousand, an amount up to five hundred thousand one 25 million dollars. 26 (b) For a county with a population greater than one hundred 27 thousand but not more than one hundred fifty thousand, an 28 amount up to four six hundred thousand dollars. 29 (c) For a county with a population greater than fifty 30 thousand but not more than one hundred thousand, an amount up 31 to two hundred fifty three hundred thousand dollars. 32 (d) For a county with a population greater than twenty-six 33 thousand but not more than fifty thousand, an amount up to one 34 hundred thousand dollars. 35 -4- LSB 5979XC (14) 86 jm/rj 4/ 12

S.F. _____ (e) For a county with a population greater than fifteen 1 thousand but not more than twenty-six thousand, an amount up to 2 fifty thousand dollars. 3 (f) For a county with a population equal to or less than 4 fifteen thousand, an amount up to twenty-five thousand dollars. 5 d. Any additional moneys collected by an individual county 6 after the distributions in paragraph “c” shall be distributed 7 by the state court administrator as follows: forty percent of 8 any additional moneys collected by the county attorney or the 9 person procured or designated by the county attorney shall be 10 deposited in the general fund of the county where the moneys 11 were collected; twenty percent of the remaining sixty percent 12 collected by the county attorney or the person procured or 13 designated by the county attorney After the total collected by 14 a county attorney exceeds the threshold amount set in paragraph 15 “c” , and for the remainder of the fiscal year, five percent 16 of the additional moneys collected shall be deposited with 17 the office of the county attorney that collected the moneys; 18 twenty-eight percent of the additional moneys collected shall 19 be deposited in the general fund of the county where the moneys 20 were collected; and the remainder remaining sixty-seven percent 21 of the additional moneys shall be paid to the clerk of the 22 district court for distribution under section 602.8108 or the 23 state court administrator may distribute the remainder under 24 section 602.8108 if the additional moneys have already been 25 received by the state court administrator. 26 e. (1) A county may enter into an agreement pursuant to 27 chapter 28E with one or more other counties for the purpose of 28 collecting delinquent court debt pursuant to this subsection . 29 (2) Notwithstanding paragraph “c” , if a county subject 30 to the threshold amount in paragraph “c” , subparagraph (2), 31 subparagraph division (e) or (f) enters into such an agreement 32 exclusively with a county or counties subject to the threshold 33 amount in paragraph “c” , subparagraph (2), subparagraph 34 division (e) or (f), the threshold amount applicable to all 35 -5- LSB 5979XC (14) 86 jm/rj 5/ 12

S.F. _____ of the counties combined shall be a single threshold amount, 1 equal to the threshold amount attributable to the county with 2 the largest population When a county enters into a chapter 28E 3 agreement with another county or counties to collect delinquent 4 court debt, the county or the county debt collection designee 5 must collect an amount of delinquent court debt that originated 6 in the county and that is equal to the applicable threshold 7 amount under paragraph “c” in order for the county to qualify 8 for distribution of moneys collected by county attorneys under 9 paragraph “d” . 10 f. Beginning July 1, 2010 2017 , and every fiscal year 11 thereafter, amounts collected and distributed pursuant to 12 this subsection shall be equal to or greater than twenty-five 13 thousand dollars for each county or twenty-five thousand 14 dollars in the aggregate for counties that have entered into an 15 agreement pursuant to chapter 28E . If a county, or counties 16 that have entered into a chapter 28E agreement, fails to meet 17 the minimum threshold established in this paragraph, the 18 county, or counties under the chapter 28E agreement, shall 19 be within two years of beginning to collect delinquent court 20 debt, a county attorney shall be required to collect one 21 hundred percent of the applicable threshold amount specified 22 in paragraph “c” . If a county attorney collects more than 23 eighty percent but less than one hundred percent of the 24 applicable threshold amount, the state court administrator 25 shall provide notice to the county attorney specifying that in 26 order to remain eligible to participate in the county attorney 27 collection program, the county attorney must collect at least 28 one hundred twenty-five percent of the applicable threshold 29 amount by the end of the next fiscal year. If a county attorney 30 who has been given such a notice fails to collect one hundred 31 twenty-five percent of the applicable threshold amount, the 32 state court administrator shall provide notice to the county 33 attorney that the county is ineligible to participate in the 34 county attorney collection program for the following next two 35 -6- LSB 5979XC (14) 86 jm/rj 6/ 12

S.F. _____ fiscal year years and all existing and future court cases 1 with delinquent court debt shall be assigned to the private 2 collection designee . In the event a county is ineligible to 3 collect under this program, the county may apply to the state 4 debt coordinator established in section 421C.1 to reenter 5 the program following the fiscal year of ineligibility. The 6 provisions of this paragraph apply to all counties, including 7 those counties where delinquent court debt is collected 8 pursuant to a chapter 28E agreement with one or more counties. 9 Sec. 6. STATE AUDITOR —— REPORT. The state auditor shall 10 review the collection rate for each county that has filed a 11 notice of full commitment to collect delinquent court debt, and 12 file a report of the results of the review with the general 13 assembly by January 1, 2018. Additionally, the state auditor 14 shall distribute the report to the judicial branch and to each 15 county attorney who has filed a notice of full commitment to 16 collect delinquent court debt. 17 Sec. 7. TEMPORARY PROVISION FOR COUNTY COLLECTION 18 PROGRAMS. Notwithstanding the amendment to section 602.8107, 19 subsection 4, paragraph “f”, in this Act, the provisions of 20 section 602.8107, subsection 4, paragraph “f”, Code 2016, apply 21 to individual counties or counties entering into a chapter 28E 22 agreement until June 30, 2017. 23 EXPLANATION 24 The inclusion of this explanation does not constitute agreement with 25 the explanation’s substance by the members of the general assembly. 26 This bill relates to the collection of delinquent court debt 27 and associated installment agreements. 28 The bill specifies that delinquent court debt assigned to 29 a county attorney or to the private debt collection designee 30 shall remain with the collection entity collecting the debt. 31 The bill provides that the department of transportation 32 shall immediately lift any driver’s license suspension due to a 33 delinquent fine, penalty, surcharge, or court cost under Code 34 section 321.210A, if the case with the delinquent amount is 35 -7- LSB 5979XC (14) 86 jm/rj 7/ 12

S.F. _____ included in an executed installment agreement. 1 The bill strikes Code section 321.210B(12) prohibiting 2 a fine, penalty, surcharge, or court cost contained in an 3 installment agreement that is in default from being placed in a 4 new installment agreement. 5 The bill modifies the distribution formula when a county 6 attorney collects delinquent court debt. 7 The bill provides that a county attorney may begin 8 collecting delinquent court debt 30 days after the court debt 9 is assessed and payment has not been received, if the county 10 attorney has filed a one-time notice of full commitment to 11 collect delinquent court debt with the clerk of the district 12 court. Current law provides that a county attorney may begin 13 collecting delinquent court debt 60 days after the court debt 14 is deemed delinquent, and if the county attorney files a notice 15 of commitment to collect delinquent court debt on an annual 16 basis with the clerk of the district court. 17 The bill requires that cases involving court debt be 18 assigned to the county attorney in the same format and with 19 the same frequency as cases with delinquent court debt are 20 assigned to the private debt collection designee. If the 21 county attorney, or the county attorney’s designee, determines 22 that a person has additional delinquent court debt for which a 23 case has not been assigned by the judicial branch, the county 24 attorney or the county attorney’s designee shall notify the 25 clerk of the district court of the appropriate case numbers 26 and the judicial branch shall assign these cases to the 27 county attorney for collection if the additional court debt is 28 delinquent. 29 The bill requires the county attorney to also file a 30 memorandum of understanding with the state court administrator 31 for all cases assigned to the county attorney for collection 32 by the court. 33 The bill provides that for a county attorney filing a 34 notice of full commitment for the first time, the cases with 35 -8- LSB 5979XC (14) 86 jm/rj 8/ 12

S.F. _____ delinquent court debt previously assigned to the private 1 collection designee shall remain assigned to the private 2 collection designee. Cases with delinquent court debt assigned 3 to the county attorney after filing a notice of full commitment 4 by the county attorney shall remain assigned to the county 5 attorney. 6 The bill provides that a county attorney who chooses to 7 discontinue the collection of delinquent court debt shall 8 file with the clerk of the district court on or before May 15 9 a notice of the intent to cease collection at the start of 10 the next fiscal year. If a county ceases collection efforts 11 under the bill, or if the state court administrator provides 12 notice that a county attorney collections program has become 13 ineligible to collect delinquent court debt, the court debt in 14 any existing installment agreement remains with the county for 15 collection unless an installment payment becomes delinquent, 16 after which all the remaining delinquent court debt associated 17 with the installment agreement must be transferred for 18 collection to the private collection designee on July 1. 19 The bill and current law provide that the county attorney 20 is not eligible to retain certain court debt specified in Code 21 section 602.8107(4)(a). Code section 602.8107(2)(c) continues 22 to govern the prioritized application of court debt receipts. 23 The bill and current law provide for a two-tier distribution 24 formula if a county attorney decides to collect delinquent 25 court debt. Current law and the bill provide for one 26 distribution formula to the county and the state when the 27 county attorney collects below a certain threshold dollar 28 amount and a different distribution formula when a county 29 attorney exceeds that certain threshold dollar amount. The 30 bill makes three major changes to the county attorney court 31 debt collection formula. 32 First, the bill requires 28 percent of the distributable 33 amount of court debt collected by the county attorney to be 34 deposited into the county general fund. Current law requires 35 -9- LSB 5979XC (14) 86 jm/rj 9/ 12

S.F. _____ 40 percent of the distributable amount of court debt collected 1 by the county attorney to be deposited into the county general 2 fund. Current law and the bill provide that the remaining 3 court debt not deposited into the county general fund be paid 4 to the clerk of district court for distribution under Code 5 section 602.8108. Under the bill, this remaining court debt 6 is 72 percent of the distributable amount of court debt and 7 is required to be paid to the clerk of the district court for 8 distribution under Code section 602.8108. 9 Second, the bill changes the threshold dollar amounts 10 that are in place to further incentivize a county attorney 11 to continue collecting delinquent court debt. The threshold 12 dollar amount depends on the population size of the county. 13 The bill changes the threshold dollar amount for a county with 14 a population greater than 150,000 from $500,000 to $1 million. 15 The bill changes the threshold dollar amount for a county with 16 a population greater than 100,000 but not more than 150,000 17 from $400,000 to $600,000. The bill changes the threshold 18 dollar amount for a county with a population greater than 19 50,000 but not more than 100,000 from $250,000 to $300,000. 20 The remaining threshold amounts for the less populated counties 21 are not changed by the bill and are specified in Code section 22 602.8107(4)(c)(2). 23 Third, after a county attorney’s collection of delinquent 24 court debt exceeds the threshold dollar amount and for the 25 remainder of the fiscal year, the bill requires 5 percent of 26 the distributable amount of court debt collected by the county 27 attorney to be deposited with the office of the county attorney 28 that collected the debt. Current law requires 12 percent of 29 the distributable amount of court debt to be deposited with the 30 office of the county attorney. In addition to the 5 percent 31 of distributable court debt deposited with the office of the 32 county attorney that collected the debt, the bill requires 28 33 percent of the distributable amount of court debt collected 34 by the county attorney after exceeding the threshold dollar 35 -10- LSB 5979XC (14) 86 jm/rj 10/ 12

S.F. _____ amounts to be deposited into the county general fund. Current 1 law requires 40 percent of such debt to be deposited into the 2 county general fund. Current law and the bill requires the 3 remaining court debt not deposited into the county general fund 4 be paid to the clerk of district court for distribution under 5 Code section 602.8108. Under the bill, after exceeding the 6 threshold dollar amount, 67 percent of the court debt remains 7 to be paid to the clerk of the district court for distribution 8 under Code section 602.8108. 9 The bill provides that any county that enters into a Code 10 chapter 28E agreement with another county or counties to 11 collect delinquent court debt, must collect an amount in 12 excess of the applicable threshold dollar amount for that 13 particular county in order to qualify for the second tier of 14 the distribution formula and the 5 percent distribution to the 15 office of the county attorney. The bill specifies that Code 16 section 602.8107(4)(f), Code 2016, governs individual counties 17 entering into Code chapter 28E agreements to collect delinquent 18 court debt until June 30, 2017. 19 The bill provides that beginning July 1, 2017, a county 20 attorney shall be required to collect 100 percent of the 21 applicable threshold dollar amount within two years of 22 beginning to collect delinquent court debt. The bill provides 23 that if the county attorney collects more than 80 percent 24 but less than 100 percent of the applicable threshold dollar 25 amount, the state court administrator shall provide notice to 26 the county attorney specifying that in order to remain eligible 27 to participate in the county attorney collection program, 28 the county attorney must collect at least 125 percent of the 29 applicable threshold amount by the end of the next fiscal 30 year. If after a county attorney who has been given such a 31 notice fails to collect 125 percent of the applicable threshold 32 amount, the state court administrator shall provide notice to 33 the county attorney that the county attorney is ineligible to 34 participate in the county attorney collection program for the 35 -11- LSB 5979XC (14) 86 jm/rj 11/ 12

S.F. _____ next two fiscal years. 1 The bill strikes a reference to the state debt coordinator 2 in repealed Code section 602.8107(4)(f). The coordinator was 3 never appointed. 4 The bill requires the state auditor to review the collection 5 rate for each county that has filed a notice of full commitment 6 to collect delinquent court debt, and file a report of the 7 results of the audit with the general assembly by January 1, 8 2018. The bill requires the state auditor to also distribute 9 such report to the judicial branch and to each county attorney 10 who has filed a notice of full commitment to collect delinquent 11 court debt. 12 -12- LSB 5979XC (14) 86 jm/rj 12/ 12