House
File
494
-
Introduced
HOUSE
FILE
494
BY
COMMITTEE
ON
JUDICIARY
(SUCCESSOR
TO
HSB
150)
A
BILL
FOR
An
Act
relating
to
financial
crime
enforcement
by
assessing
1
a
drug
paraphernalia
surcharge,
creating
a
money
transfer
2
service
fee
and
related
fund
and
income
tax
credit,
and
3
including
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
NEW
SECTION
.
80.32
Financial
crime
and
wire
1
transmitter
fund.
2
1.
A
financial
crime
and
wire
transmitter
fund
is
3
established
in
the
office
of
the
treasurer
of
state
under
the
4
control
of
the
department.
Any
moneys
annually
appropriated,
5
granted,
or
credited
to
the
fund,
including
any
federal
moneys,
6
are
appropriated
to
the
department
for
investigating
indictable
7
criminal
offenses
committed
for
financial
gain.
8
2.
Notwithstanding
section
12C.7,
subsection
2,
interest
9
and
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
10
to
the
fund.
Notwithstanding
section
8.33,
moneys
remaining
11
in
the
fund
at
the
end
of
the
fiscal
year
shall
not
revert
to
12
any
other
fund
but
shall
remain
available
to
be
used
for
the
13
purposes
specified
in
this
section.
14
3.
For
the
fiscal
year
beginning
July
1,
2017,
and
for
15
each
fiscal
year
thereafter,
the
department
shall
transfer
16
from
the
fund
to
the
general
fund
of
the
state,
the
lesser
of
17
the
amount
of
fees
credited
to
the
fund
for
the
fiscal
year
18
pursuant
to
section
533C.104
or
an
amount
of
money
equal
to
the
19
money
transfer
service
tax
credits
claimed
pursuant
to
section
20
422.10C
in
that
fiscal
year,
if
any.
The
moneys
transferred
21
to
the
general
fund
of
the
state
in
accordance
with
this
22
subsection
shall
not
be
considered
new
revenues
for
purposes
23
of
the
state
general
fund
expenditure
limitation
under
section
24
8.54
but
instead
as
replacement
of
a
like
amount
included
in
25
the
expenditure
limitation
for
the
fiscal
year
in
which
the
26
transfer
is
made.
27
Sec.
2.
NEW
SECTION
.
422.10C
Money
transfer
service
fee
tax
28
credit.
29
1.
The
taxes
imposed
under
this
division,
less
the
credits
30
allowed
under
section
422.12,
shall
be
reduced
by
a
money
31
transfer
service
fee
tax
credit
equal
to
the
amount
of
money
32
transfer
service
fees
under
section
533C.104
paid
by
the
33
taxpayer
during
the
tax
year.
34
2.
A
credit
shall
not
be
allowed
under
this
section
to
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an
individual
who
does
not
include
on
the
tax
return
for
the
1
taxable
year
such
individual’s
valid
taxpayer
identification
2
number
and,
if
the
individual
is
married,
the
valid
taxpayer
3
identification
number
of
such
individual’s
spouse.
For
4
purposes
of
this
subsection,
“taxpayer
identification
number”
5
means
the
same
as
defined
in
section
32
of
the
Internal
Revenue
6
Code.
7
3.
Any
credit
in
excess
of
the
tax
liability
is
refundable.
8
In
lieu
of
claiming
a
refund,
the
taxpayer
may
elect
to
have
9
the
overpayment
shown
on
the
taxpayer’s
final,
completed
return
10
credited
to
the
tax
liability
for
the
following
tax
year.
11
Sec.
3.
NEW
SECTION
.
533C.104
Money
transfer
service
fee
——
12
licensee
requirements
——
enforcement.
13
1.
For
purposes
of
this
section,
unless
the
context
14
otherwise
requires:
15
a.
“Department”
means
the
department
of
revenue.
16
b.
“Director”
means
the
director
of
revenue.
17
c.
“Money
transfer
service”
means
the
transmission
of
18
money
by
any
means
including
transmission
within
this
country
19
or
to
or
from
locations
abroad
by
payment
instrument,
wire,
20
facsimile,
or
electronic
transfer,
courier,
or
otherwise.
21
2.
a.
A
licensee
and
the
authorized
delegates
of
a
licensee
22
shall
collect
from
customers
a
money
transfer
service
fee
equal
23
to
one
percent
of
the
amount
of
each
money
transfer
service
24
transaction.
25
b.
Money
transfer
service
fees
shall
be
paid
over
to
the
26
department
by
licensees
and
their
authorized
delegates
who
27
furnish
money
transfer
services.
28
c.
The
department,
in
consultation
with
the
superintendent,
29
shall
administer
and
enforce
the
money
transfer
service
fee
as
30
nearly
as
possible
in
conjunction
with
the
administration
and
31
enforcement
of
the
state
sales
and
use
tax
law,
except
that
32
portion
of
the
law
which
implements
the
streamlined
sales
and
33
use
tax
agreement.
34
d.
The
director
may
require
licensees
and
their
authorized
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delegates
to
register
with
the
department
for
purposes
of
this
1
section.
The
director
may
also
require
a
permit
applicable
2
only
to
this
section
for
any
licensee
or
the
authorized
3
delegate
of
a
licensee
not
collecting
taxes
under
chapter
423.
4
e.
All
powers
and
requirements
of
the
director
to
administer
5
the
state
sales
and
use
tax
law
are
applicable
to
the
6
administration
of
the
money
transfer
service
fee,
including
but
7
not
limited
to
the
provisions
of
section
422.25,
subsection
4,
8
sections
422.30,
422.67,
and
422.68,
section
422.69,
subsection
9
1,
sections
422.70
through
422.75,
section
423.14,
subsection
10
1
and
subsection
2,
paragraphs
“b”
through
“e”
,
and
sections
11
423.15,
423.23,
423.24,
423.25,
423.31
through
423.35,
423.37
12
through
423.42,
423.46,
and
423.47.
13
f.
Failure
by
a
licensee
or
a
licensee’s
authorized
14
delegate
to
collect
and
remit
money
transfer
service
fees
15
or
to
comply
with
any
other
provision
of
this
section
shall
16
subject
the
licensee
and
the
authorized
delegates
of
a
licensee
17
to
the
enforcement
provisions
of
article
7
of
this
chapter.
18
The
director
and
the
department
shall
cooperate
with
the
19
superintendent
in
identifying
violations
of
this
section
and
in
20
discharging
the
superintendent’s
enforcement
responsibilities
21
under
article
7
of
this
chapter.
22
g.
All
money
transfer
service
fees
collected
under
this
23
section
shall
be
deposited
in
a
separate
account
in
the
24
financial
crime
and
wire
transmitter
fund
established
by
25
section
80.32.
26
3.
A
licensee
and
the
authorized
delegates
of
a
licensee
27
furnishing
money
transfer
services
shall
post
a
notice
in
the
28
form
and
manner
prescribed
by
the
superintendent
that
notifies
29
customers
that
upon
filing
an
individual
income
tax
return
with
30
a
valid
taxpayer
identification
number,
the
customer
shall
be
31
entitled
to
an
individual
income
tax
credit
equal
to
the
amount
32
of
money
transfer
service
fees
paid
by
the
customer
during
the
33
tax
year.
34
Sec.
4.
Section
602.8102,
subsection
135A,
Code
2017,
is
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amended
to
read
as
follows:
1
135A.
Assess
the
surcharges
provided
by
sections
911.1
,
2
911.2
,
911.2A
,
911.2B
,
911.2C
,
911.3
,
and
911.4
,
and
911.5
.
3
Sec.
5.
Section
602.8108,
Code
2017,
is
amended
by
adding
4
the
following
new
subsection:
5
NEW
SUBSECTION
.
13.
The
clerk
of
the
district
court
shall
6
remit
all
moneys
collected
from
the
assessment
of
the
drug
7
paraphernalia
surcharge
provided
in
section
911.5
to
the
state
8
court
administrator
for
deposit
in
the
financial
crime
and
wire
9
transmitter
fund
established
in
section
80.32.
10
Sec.
6.
NEW
SECTION
.
911.5
Drug
paraphernalia
surcharge.
11
1.
In
addition
to
any
other
surcharge,
the
clerk
of
the
12
district
court
shall
assess
a
drug
paraphernalia
surcharge
of
13
five
dollars
if
an
adjudication
of
guilt
or
a
deferred
judgment
14
has
been
entered
for
a
criminal
violation
of
section
124.414
or
15
a
similar
city
or
county
ordinance.
16
2.
The
surcharge
shall
be
remitted
by
the
clerk
of
court
as
17
provided
in
section
602.8108,
subsection
13.
18
Sec.
7.
RETROACTIVE
APPLICABILITY.
The
following
provision
19
or
provisions
of
this
Act
apply
retroactively
to
January
1,
20
2017,
for
tax
years
beginning
on
or
after
that
date:
21
1.
The
section
of
this
division
enacting
section
422.10C.
22
EXPLANATION
23
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
24
the
explanation’s
substance
by
the
members
of
the
general
assembly.
25
This
bill
relates
to
financial
crime
enforcement
by
26
assessing
a
drug
paraphernalia
surcharge
and
creating
a
money
27
transfer
service
fee
and
related
fund
and
income
tax
credit.
28
DRUG
PARAPHERNALIA
SURCHARGE.
The
bill
provides
that
the
29
clerk
of
the
district
court
shall
assess
a
drug
paraphernalia
30
surcharge
of
five
dollars
if
an
adjudication
of
guilt
or
31
a
deferred
judgment
has
been
entered
for
possessing
drug
32
paraphernalia
in
violation
of
Code
section
124.414
or
a
similar
33
city
or
county
ordinance.
The
bill
specifies
that
the
clerk
of
34
the
district
court
shall
remit
all
moneys
collected
from
the
35
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assessment
of
the
surcharge
to
the
state
court
administrator
1
for
deposit
in
the
financial
crime
and
wire
transmitter
fund
2
established
by
the
bill.
3
MONEY
TRANSFER
SERVICE
FEE
AND
RELATED
FUND
AND
TAX
CREDIT.
4
The
bill
requires
a
licensee
under
Code
chapter
533C,
the
5
uniform
money
services
Act,
to
collect
from
customers
a
money
6
transfer
service
fee
equal
to
1
percent
of
the
amount
of
each
7
money
transfer
service
transaction.
The
bill
defines
“money
8
transfer
service”
as
the
transmission
of
money
by
any
means
9
including
transmission
within
this
country
or
to
or
from
10
locations
abroad
by
payment
instrument,
wire,
facsimile,
or
11
electronic
transfer,
courier,
or
otherwise.
12
The
bill
requires
such
licensees
to
pay
such
fees
over
to
the
13
department
of
revenue.
The
bill
requires
the
department,
in
14
consultation
with
the
superintendent
of
banking,
to
administer
15
and
enforce
the
money
transfer
service
fee
as
nearly
as
16
possible
in
conjunction
with
the
administration
and
enforcement
17
of
the
state
sales
and
use
tax
law,
except
that
portion
of
18
the
law
which
implements
the
streamlined
sales
and
use
tax
19
agreement.
20
The
bill
permits
the
director
of
revenue
to
require
21
licensees
to
register
with
the
department
for
purposes
of
22
the
bill.
The
bill
permits
the
director
to
require
a
permit
23
applicable
only
to
the
bill
for
any
licensee
not
collecting
24
taxes
under
Code
chapter
423.
The
bill
provides
that
all
25
powers
and
requirements
of
the
director
to
administer
the
state
26
sales
and
use
tax
law
are
applicable
to
the
administration
of
27
the
money
transfer
service
fee.
28
Failure
by
a
licensee
to
collect
and
remit
money
transfer
29
service
fees
or
to
comply
with
any
other
provision
of
the
bill
30
shall
subject
the
licensee
to
the
enforcement
provisions
of
31
article
7
of
Code
chapter
533C.
The
bill
requires
the
director
32
and
the
department
to
cooperate
with
the
superintendent
in
33
identifying
violations
of
the
bill
and
in
discharging
the
34
superintendent’s
enforcement
responsibilities
under
article
7
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of
Code
chapter
533C.
1
Penalties
provided
for
in
article
7
of
Code
chapter
533C
2
include
suspension
and
revocation
of
a
license
under
Code
3
chapter
533C,
civil
penalties,
and
criminal
penalties
that
4
include
class
“C”
and
“D”
felonies
and
aggravated
and
simple
5
misdemeanors.
A
class
“C”
felony
is
punishable
by
confinement
6
for
no
more
than
10
years
and
a
fine
of
at
least
$1,000
but
7
not
more
than
$10,000.
A
class
“D”
felony
is
punishable
by
8
confinement
for
no
more
than
five
years
and
a
fine
of
at
least
9
$750
but
not
more
than
$7,500.
An
aggravated
misdemeanor
10
is
punishable
by
confinement
for
no
more
than
two
years
and
11
a
fine
of
at
least
$625
but
not
more
than
$6,250.
A
simple
12
misdemeanor
is
punishable
by
confinement
for
no
more
than
30
13
days
or
a
fine
of
at
least
$65
but
not
more
than
$625
or
by
14
both.
15
The
bill
provides
that
all
money
transfer
service
fees
16
collected
under
the
bill
shall
be
deposited
in
the
financial
17
crime
and
wire
transmitter
fund
established
by
the
bill.
18
The
bill
requires
a
licensee
furnishing
money
transfer
19
services
to
post
a
notice
in
the
form
and
manner
prescribed
20
by
the
superintendent
that
notifies
customers
that
upon
21
filing
an
individual
income
tax
return
with
a
valid
taxpayer
22
identification
number,
the
customer
shall
be
entitled
to
an
23
individual
income
tax
credit
equal
to
the
amount
of
money
24
transfer
service
fees
paid
by
the
customer
during
the
tax
year.
25
The
bill
also
applies
to
authorized
delegates
of
a
licensee
26
under
Code
chapter
533C.
27
The
bill
provides
an
individual
income
tax
credit
equal
to
28
the
amount
of
money
transfer
service
fees
paid
by
the
taxpayer
29
during
the
tax
year.
The
bill
provides
that
the
credit
shall
30
not
be
allowed
to
an
individual
who
does
not
include
on
the
tax
31
return
for
the
taxable
year
the
individual’s
valid
taxpayer
32
identification
number
and
that
of
the
individual’s
spouse
if
33
applicable.
The
bill
provides
that
the
credit
is
refundable
34
and
may
be
credited
to
the
individual’s
tax
liability
for
the
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494
following
tax
year.
The
provision
enacting
the
tax
credit
1
applies
retroactively
to
January
1,
2017,
for
tax
years
2
beginning
on
or
after
that
date.
3
The
bill
establishes
a
financial
crime
and
wire
transmitter
4
fund
in
the
office
of
the
treasurer
of
state
under
the
control
5
of
the
department
of
public
safety.
Any
moneys
annually
6
appropriated,
granted,
or
credited
to
the
fund,
including
any
7
federal
moneys,
are
appropriated
to
the
department
of
public
8
safety
for
the
purpose
of
investigating
indictable
criminal
9
offenses
committed
for
financial
gain.
Interest
and
earnings
10
on
moneys
deposited
in
the
fund
shall
be
credited
to
the
fund
11
and
moneys
remaining
in
the
fund
at
the
end
of
the
fiscal
year
12
shall
not
revert.
13
The
bill
requires
the
department
of
public
safety,
for
14
the
fiscal
year
beginning
July
1,
2017,
and
for
each
fiscal
15
year
thereafter,
to
transfer
from
the
fund
to
the
general
16
fund
of
the
state,
the
lesser
of
the
amount
of
money
transfer
17
service
fees
collected
or
an
amount
of
money
equal
to
the
money
18
transfer
service
tax
credits
claimed
in
that
fiscal
year,
if
19
any.
The
bill
provides
that
the
moneys
transferred
to
the
20
general
fund
of
the
state
in
accordance
with
the
bill
shall
not
21
be
considered
new
revenues
for
purposes
of
the
state
general
22
fund
expenditure
limitation
under
Code
section
8.54
but
instead
23
as
replacement
of
a
like
amount
included
in
the
expenditure
24
limitation
for
the
fiscal
year
in
which
the
transfer
is
made.
25
-7-
LSB
2265HV
(1)
87
jm/nh
7/
7