House File 739 - Introduced HOUSE FILE 739 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 511) (SUCCESSOR TO HSB 69) (COMPANION TO SF 543 BY COMMITTEE ON HUMAN RESOURCES) A BILL FOR An Act relating to the application fee and annual fee imposed 1 for nonassistance child support cases. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1211HZ (1) 88 pf/rh
H.F. 739 Section 1. Section 252B.4, Code 2019, is amended to read as 1 follows: 2 252B.4 Nonassistance cases. 3 1. The child support and paternity determination services 4 established by the department pursuant to this chapter and 5 other appropriate services provided by law including but 6 not limited to the provisions of chapters 239B , 252A , 252C , 7 252D , 252E , 252F , 598 , and 600B shall be made available by 8 the unit to an individual not otherwise eligible as a public 9 assistance recipient upon application by the individual for the 10 services or upon referral as described in subsection 5 4 . The 11 application shall be filed with the department. 12 1. The director shall require an application fee of 13 twenty-five dollars. 14 2. The director may collect a fee to cover the costs 15 incurred by the department for service of process, genetic 16 testing and court costs if the entity providing the service 17 charges a fee for the services. 18 3. Fees collected pursuant to this section shall be 19 considered repayment receipts, as defined in section 8.2 , and 20 shall be used for the purposes of the unit. The director or a 21 designee shall keep an accurate record of the fees collected 22 and expended. 23 4. An application fee paid by a recipient of services 24 pursuant to subsection 1 may be recovered by the unit from the 25 person responsible for payment of support and if recovered 26 shall be used to reimburse the recipient of services. 27 a. The fee shall be an automatic judgment against the person 28 responsible to pay support. 29 b. This subsection shall serve as constructive notice that 30 the fee is a debt due and owing, is an automatic judgment 31 against the person responsible for support, and is assessed 32 as the fee is paid by a recipient of services. The fee may 33 be collected in addition to any support payments or support 34 judgment ordered, and no further notice or hearing is required 35 -1- LSB 1211HZ (1) 88 pf/rh 1/ 4
H.F. 739 prior to collecting the fee. 1 c. Notwithstanding any provision to the contrary, the unit 2 may collect the fee through any legal means by which support 3 payments may be collected, including but not limited to income 4 withholding under chapter 252D or income tax refund offsets, 5 unless prohibited under federal law. 6 d. The unit is not required to file these judgments with 7 the clerk of the district court, but shall maintain an accurate 8 accounting of the fee assessed, the amount of the fee, and the 9 recovery of the fee. 10 e. Support payments collected shall not be applied to the 11 recovery of the fee until all other support obligations under 12 the support order being enforced, which have accrued through 13 the end of the current calendar month, have been paid or 14 satisfied in full. 15 f. This subsection applies to fees that become due on or 16 after July 1, 1992. 17 5. 4. The unit shall also provide child support and 18 paternity determination services and shall respond as provided 19 in federal law for an individual not otherwise eligible as a 20 public assistance recipient if the unit receives a request from 21 any of the following: 22 a. A child support agency. 23 b. A foreign country as defined in chapter 252K . 24 Sec. 2. Section 252B.5, subsection 13, paragraph a, Code 25 2019, is amended to read as follows: 26 a. Beginning October 1, 2007, implement the provision of 27 the federal Deficit Reduction Act of 2005, Pub. L. No. 109-171, 28 §7310, requiring an annual collections fee of twenty-five 29 dollars in child support cases in which the family has never 30 received assistance under Tit. IV-A of the federal Social 31 Security Act for whom the unit has disbursed at least five 32 hundred dollars. When the first five hundred dollars in 33 support is disbursed in each federal fiscal year for a family, 34 the fee shall be collected from the obligee by retaining 35 -2- LSB 1211HZ (1) 88 pf/rh 2/ 4
H.F. 739 twenty-five dollars from disbursements to the obligee. If five 1 hundred dollars but less than five hundred twenty-five dollars 2 is disbursed in any federal fiscal year, any unpaid portion of 3 the annual fee shall not accumulate and is not due. Impose 4 an annual fee, which shall be retained from support collected 5 on behalf of the obligee, in accordance with 42 U.S.C. 6 §654(6)(B)(ii). The unit shall send information regarding 7 the requirements of this subsection by regular mail to the 8 last known address of an affected obligee, or may include the 9 information for an obligee in an application for services 10 signed by the obligee. In addition, the unit shall take steps 11 necessary regarding the fee to qualify for federal funds in 12 conformity with the provisions of Tit. IV-D of the federal 13 Social Security Act, including receiving and accounting for 14 fee payments, as appropriate, through the collection services 15 center created in section 252B.13A . 16 Sec. 3. Section 252H.5, subsections 1 and 4, Code 2019, are 17 amended to read as follows: 18 1. A Unless the unit is already providing support 19 enforcement service pursuant to chapter 252B, a parent ordered 20 to provide support, who requests a review of a support order 21 under subchapter II , shall file an application for services and 22 pay an application fee pursuant to section 252B.4 . 23 4. The unit shall, consistent with applicable federal 24 law, recover administrative costs in excess of any fees 25 collected pursuant to subsections 1, 2 , and 3 for providing 26 services under this chapter and shall adopt rules providing for 27 collection of fees for administrative costs. 28 Sec. 4. ADMINISTRATIVE RULES —— TRANSITION. Until such 29 time as the department of human services adopts administrative 30 rules pursuant to chapter 17A as necessary to administer this 31 Act, the child support recovery unit may accept applications 32 for child support services in accordance with chapter 252B, as 33 amended in this Act. 34 EXPLANATION 35 -3- LSB 1211HZ (1) 88 pf/rh 3/ 4
H.F. 739 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill relates to fees for services provided by the child 3 support recovery unit (unit). Currently, individuals who apply 4 for child support services in nonassistance cases pay a $25 5 application fee. The bill eliminates the $25 application fee. 6 The bill also amends the provision relating to the payment 7 of an annual fee for individuals who receive services from 8 the unit in nonassistance cases. The current state statute 9 specifies that the annual fee is $25 and is collected from 10 the obligee after $500 in support has been distributed to the 11 family. Under the bill, which cites to the revised federal 12 law, the fee will be $35 and will be collected from the obligee 13 after $550 in support has been distributed to the family. By 14 citing directly to the federal law rather than specifying an 15 amount in state statute, any changes in the federal law will 16 automatically govern the amount of the annual fee without the 17 need for changes in the state statute. 18 The bill also makes conforming changes. 19 -4- LSB 1211HZ (1) 88 pf/rh 4/ 4