Senate File 301 - Introduced SENATE FILE 301 BY DANIELSON A BILL FOR An Act relating to employer reimbursements for withholding 1 wages for support payments and garnishment. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2167SS (1) 87 jh/nh

S.F. 301 Section 1. Section 252D.17, subsection 1, paragraph b, Code 1 2017, is amended to read as follows: 2 b. As reimbursement for the payor’s processing costs, the 3 payor may deduct a fee of no more than two five dollars for each 4 payment in addition to the amount withheld for support. The 5 payor of income is not required to vary the payroll cycle to 6 comply with the frequency of payment of a support order. 7 Sec. 2. Section 252D.18A, subsection 2, Code 2017, is 8 amended to read as follows: 9 2. As reimbursement for the payor’s processing costs, the 10 payor may deduct a fee of no more than two five dollars for 11 each payment withheld in addition to the amount withheld for 12 support. 13 Sec. 3. Section 642.14B, Code 2017, is amended to read as 14 follows: 15 642.14B Notice to defendant —— employer garnishees. 16 If the garnishment is to earnings an employer owes a 17 defendant, the employer shall deliver the notice of garnishment 18 to the defendant with the remainder of or in lieu of the 19 defendant’s earnings. As reimbursement for the employer’s 20 processing costs, the employer may deduct a fee of no more than 21 five dollars from the defendant’s earnings for each payment in 22 addition to the amount withheld. The garnishee shall state in 23 answer to the sheriff’s examination whether or not service of 24 the notice of garnishment was delivered to the defendant. The 25 notice required by this section shall contain the information 26 required by section 642.14A, subsection 3 , and shall be 27 delivered by personal service, mail, or electronic means. 28 Sec. 4. Section 642.21, subsection 1, unnumbered paragraph 29 1, Code 2017, is amended to read as follows: 30 The disposable earnings of an individual are exempt from 31 garnishment to the extent provided by the federal Consumer 32 Credit Protection Act, Tit. III, 15 U.S.C. §1671 – 1677 33 (1982). The maximum amount of an employee’s earnings which 34 may be garnished during any one calendar year , including any 35 -1- LSB 2167SS (1) 87 jh/nh 1/ 2

S.F. 301 processing fees allowed pursuant to section 642.14B, is two 1 hundred fifty dollars for each judgment creditor, except as 2 provided in chapter 252D and sections 598.22 , 598.23 , and 3 627.12 , or when those earnings are reasonably expected to be 4 in excess of twelve thousand dollars for that calendar year 5 as determined from the answers taken by the sheriff or by the 6 court pursuant to section 642.5 , question number four. When 7 the employee’s earnings are reasonably expected to be more than 8 twelve thousand dollars, the maximum amount of those earnings 9 which may be garnished during a calendar year , including any 10 processing fees allowed pursuant to section 642.14B, for each 11 creditor is as follows: 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 Under current law, an employer may be required to withhold a 16 portion of an employee’s wages when the employee owes an amount 17 as a support payment, including child support, maintenance, 18 medical support, or spousal support, or when the employer 19 is garnished due to a judgment against the employee. As 20 reimbursement for processing costs for support payments, an 21 employer may withhold two dollars for each period where an 22 amount is withheld. An employer is not allowed reimbursement 23 for processing costs related to garnishment. 24 This bill provides that an employer may withhold five 25 dollars from the employee’s earnings for each period where an 26 amount is withheld for support payments or garnishment. The 27 amounts withheld are included when calculating the amount of 28 earnings that may be withheld per year, which is subject to an 29 annual maximum under federal law. 30 -2- LSB 2167SS (1) 87 jh/nh 2/ 2