Senate File 367 - Introduced SENATE FILE 367 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SSB 1146) A BILL FOR An Act relating to certain financial obligations, including 1 under the consumer credit code, and including under the 2 criminal and juvenile justice system by modifying criminal 3 and civil surcharges, fines, fees, costs, and court debt, 4 providing civil penalties, and including effective date and 5 retroactive applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1174SV (3) 89 as/rh

S.F. 367 Section 1. Section 537.1301, subsection 12, Code 2021, is 1 amended to read as follows: 2 12. “Consumer credit transaction” means a consumer credit 3 sale or consumer loan, or a refinancing or consolidation 4 thereof, or a consumer lease, or a consumer rental purchase 5 agreement. “Consumer credit transaction” does not include 6 goods, services, or any other benefits provided by or on behalf 7 of the state or a state agency. 8 Sec. 2. Section 602.8105, subsection 2, paragraph h, Code 9 2021, is amended to read as follows: 10 h. For applicable convictions under section 692A.110 prior 11 to July 1, 2009, a civil penalty of two hundred ten dollars, 12 and for applicable convictions under section 692A.110 on or 13 after July 1, 2009 June 25, 2020 , a civil penalty of two 14 hundred sixty dollars. 15 Sec. 3. Section 602.8107, subsection 1, paragraph a, Code 16 2021, is amended to read as follows: 17 a. “Court debt” means all restitution as defined in section 18 910.1 , fees, and forfeited bail , and other debt paid to or 19 collected by the clerk of the district court . 20 Sec. 4. Section 602.8107, subsection 3, Code 2021, is 21 amended to read as follows: 22 3. Collection by department of revenue. 23 a. (1) Thirty days after court debt has been assessed 24 and full payment has not been received, or if an installment 25 payment is not received within thirty days after the date it is 26 due, the judicial branch shall assign a case to the department 27 of revenue, unless the case has been assigned to the county 28 attorney under paragraph “c” “d” . 29 (2) The department of revenue may impose a fee established 30 by rule to reflect the cost of processing which shall be added 31 to the debt owed to the clerk of the district court. 32 b. (1) In addition, court debt which is being collected 33 under an installment agreement pursuant to section 321.210B 34 which is in default that remains delinquent shall remain 35 -1- LSB 1174SV (3) 89 as/rh 1/ 9

S.F. 367 assigned to the department of revenue if the installment 1 agreement was executed with the department of revenue; or 2 to the county attorney or county attorney’s designee if the 3 installment agreement was executed with the county attorney 4 or county attorney’s designee The department of revenue shall 5 receive fifteen percent of all court debt payments collected on 6 cases assigned to the department of revenue for collection to 7 reflect the cost of processing, with the remainder of the court 8 debt to be collected by the clerk of the district court for 9 distribution in accordance with applicable law . The department 10 of revenue shall not receive payment pursuant to this paragraph 11 from any court debt collected that is payable to a crime victim 12 as pecuniary damages until after the clerk of the district 13 court has received the entirety of the court debt payable to 14 the crime victim as pecuniary damages. 15 (2) Payments made by a person under subparagraph (1) between 16 January 1, 2021, and the effective date of this Act which added 17 the department of revenue processing fee to the debt owed to 18 the clerk of the district court pursuant to section 602.8107, 19 subsection 3, paragraph “a” , subparagraph (2), Code 2021, 20 shall be calculated as if the payment had been made pursuant 21 to subparagraph (1) and the department’s fee in subparagraph 22 (1) shall be applied to such a payment. The department of 23 revenue processing fee added to the debt shall be deducted from 24 the amount of court debt owed to the clerk of the district 25 court. If a payment made by a person owing court debt between 26 January 1, 2021, and the effective date of this Act reduces 27 the total amount of court debt owed to zero, the department 28 of revenue shall issue a refund to the person in the amount 29 attributable to the processing fee added to the court debt. 30 This subparagraph is repealed on January 1, 2023. 31 c. The centralized debt collection facilities of the 32 department of revenue established pursuant to section 421.17, 33 subsection 27, shall collect court debt assigned to the 34 department of revenue pursuant to this section. 35 -2- LSB 1174SV (3) 89 as/rh 2/ 9

S.F. 367 c. d. Thirty days after court debt has been assessed 1 and full payment has not been received, or if an installment 2 payment is not received within thirty days after the date it 3 is due, and if a county attorney has filed with the clerk 4 of the district court a notice of full commitment to collect 5 delinquent court debt pursuant to subsection 4 , the case shall 6 be assigned to the county attorney as provided in subsection 4 . 7 The judicial branch shall assign cases with delinquent court 8 debt to a county attorney in the same format and with the same 9 frequency as cases with delinquent court debt are assigned to 10 the department of revenue under paragraph “a” , and a county 11 attorney shall not be required to file an individual notice 12 of full commitment to collect delinquent court debt for each 13 assigned case. If the county attorney or the county attorney’s 14 designee, while collecting delinquent court debt pursuant to 15 subsection 4 , determines that a person owes additional court 16 debt for which a case has not been assigned by the judicial 17 branch, the county attorney or the county attorney’s designee 18 shall notify the clerk of the district court of the appropriate 19 case numbers and the judicial branch shall assign these cases 20 to the county attorney for collection if the additional court 21 debt is delinquent. 22 Sec. 5. Section 602.8107, subsection 4, paragraph a, Code 23 2021, is amended to read as follows: 24 a. This subsection does not apply to amounts collected 25 for restitution involving pecuniary damages, the victim 26 compensation fund, the crime services surcharge, sex offender 27 civil penalty the human trafficking victim surcharge , the 28 domestic and sexual abuse crimes surcharge, the agricultural 29 theft surcharge, or amounts collected as a result of procedures 30 initiated under subsection 5 the sex offender civil penalty, 31 or under section 8A.504 . 32 Sec. 6. Section 602.8107, subsection 5, Code 2021, is 33 amended by striking the subsection and inserting in lieu 34 thereof the following: 35 -3- LSB 1174SV (3) 89 as/rh 3/ 9

S.F. 367 5. Uncollectible debt. 1 a. Court debt that has been assigned to the department of 2 revenue for collection pursuant to subsection 3 may be charged 3 off from active collection by the director of the department of 4 revenue if either of the following conditions exist: 5 (1) The person owing the court debt is deceased and there 6 are no assets in the person’s estate or there are no assets 7 available for the payment of court debt under section 633.425. 8 (2) The person owing the court debt cannot be located 9 after diligent inquiry and the director of the department of 10 revenue determines the department will not be able to locate 11 the person. 12 b. Court debt for any of the following shall not be charged 13 off until sixty-five years from the date of imposition: 14 (1) Victim restitution. 15 (2) Victim compensation. 16 (3) A criminal penalty surcharge. 17 (4) A sex offender civil penalty. 18 (5) A drug abuse resistance education surcharge. 19 (6) A law enforcement initiative surcharge. 20 (7) A county enforcement surcharge. 21 (8) Fees charged pursuant to section 356.7. 22 c. Debt that is charged off shall remain due and owing, but 23 the judicial branch shall close the corresponding case file for 24 the purposes of collection pursuant to this section. 25 Sec. 7. Section 692A.110, subsection 2, Code 2021, is 26 amended to read as follows: 27 2. In addition to any other penalty, at the time of 28 conviction for a public offense committed on or after July 1, 29 1995, which requires a sex offender to register under this 30 chapter , the offender shall be assessed a civil penalty of two 31 hundred dollars, to be payable to the clerk of the district 32 court as provided in section 602.8105 and distributed as 33 provided in section 602.8108 . With respect to a conviction 34 for a public offense committed on or after July 1, 2009, which 35 -4- LSB 1174SV (3) 89 as/rh 4/ 9

S.F. 367 requires a sex offender to register under this chapter , the 1 offender shall be assessed a civil penalty of two hundred fifty 2 dollars, payable to the clerk of the district court as provided 3 in section 602.8105 and distributed as provided in section 4 602.8108 . 5 Sec. 8. Section 910.3, subsection 8, Code 2021, is amended 6 to read as follows: 7 8. The court shall enter a permanent restitution order 8 setting out the amount of restitution including the amount of 9 public service to be performed as restitution and the persons 10 to whom restitution must be paid. A permanent restitution 11 order entered at the time of sentencing is part of the final 12 judgment of sentence as defined in section 814.6 and shall 13 be considered in a properly perfected appeal. An appellate 14 court shall not review or modify any issue related to a 15 defendant’s ability to pay unless the defendant has exhausted 16 the defendant’s remedies under section 910.7 and obtained a 17 ruling from the district court prior to the issue being raised 18 in the appellate court. 19 Sec. 9. Section 911.2B, Code 2021, is amended to read as 20 follows: 21 911.2B Domestic abuse assault, domestic abuse protective 22 order contempt, and sexual abuse , stalking, and human trafficking 23 crimes surcharge. 24 1. In addition to any other surcharge, the court shall 25 assess a domestic abuse assault, domestic abuse protective 26 order contempt, sexual abuse, stalking, and human trafficking 27 victim domestic and sexual abuse crimes surcharge of ninety 28 dollars if an adjudication of guilt or a deferred judgment has 29 been entered for a violation of section 708.2A , 708.11 , or 30 710A.2 , or chapter 709 , or if a defendant is held in contempt 31 of court for violating a domestic abuse protective order issued 32 pursuant to chapter 236 . 33 2. In the event of multiple offenses, the surcharge shall be 34 imposed for each applicable offense. 35 -5- LSB 1174SV (3) 89 as/rh 5/ 9

S.F. 367 3. The surcharge shall be remitted by the clerk of court as 1 provided in section 602.8108, subsection 6 . 2 Sec. 10. RESCISSION OF ADMINISTRATIVE RULES. Contingent 3 on the passage of the section of this Act amending section 4 602.8107, subsection 3, paragraph “a”, the following 5 administrative rule is rescinded: 6 Iowa administrative code rule 701 —— 155.1(602). 7 Sec. 11. EFFECTIVE DATE. The following, being deemed of 8 immediate importance, take effect upon enactment: 9 1. The section of this Act amending section 602.8105, 10 section 2, paragraph “h”. 11 2. The section of this Act amending section 602.8107, 12 subsection 3. 13 Sec. 12. RETROACTIVE APPLICABILITY. The following applies 14 retroactively to January 1, 2021, for collected delinquent 15 court debt: 16 The section of this Act amending section 602.8107, 17 subsection 3. 18 Sec. 13. RETROACTIVE APPLICABILITY. The following applies 19 retroactively to June 25, 2020: 20 The section of this Act amending section 602.8105, 21 subsection 2, paragraph “h”. 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 certain financial obligations, 26 including under the consumer credit code, and including under 27 the criminal and juvenile justice system by modifying criminal 28 and civil surcharges, fines, fees, costs, and court debt. 29 The bill provides that a “consumer credit transaction” does 30 not include goods, services, or any other benefits provided by 31 or on behalf of the state or a state agency for purposes of the 32 consumer credit code under Code chapter 537. 33 The bill provides that the clerk of the district court 34 shall collect, for applicable convictions that occur under 35 -6- LSB 1174SV (3) 89 as/rh 6/ 9

S.F. 367 Code section 692A.110 (registration fees and civil penalty for 1 sex offenders) on or after June 25, 2020, a civil penalty of 2 $260. The bill makes a conforming Code change to Code section 3 692A.110(2). 4 The bill amends the definition of “court debt” to mean all 5 restitution as defined in Code section 910.1, fees, forfeited 6 bail, and other debt paid to or collected by the clerk of 7 the district court. “Restitution” means pecuniary damages, 8 category “A” restitution, and category “B” restitution. 9 The bill provides that the department of revenue shall 10 receive 15 percent of all court debt payments collected on 11 cases assigned to the department of revenue for collection 12 to reflect the cost of processing, with the remainder of the 13 court debt to be collected by the clerk of the district court 14 for distribution in accordance with applicable law. The 15 department of revenue shall not receive payment from any court 16 debt collected that is payable to a crime victim as pecuniary 17 damages until after the clerk of the district court has 18 received the entirety of the court debt payable to the crime 19 victim as pecuniary damages. Payments made by a person between 20 January 1, 2021, and the effective date of the bill shall be 21 calculated as if the payment had been made pursuant to Code 22 section 602.8107(3)(a)(2), Code 2021, and the department’s fee 23 shall be applied to such a payment. The department of revenue 24 fee added to the court debt shall be deducted from the amount 25 of court debt owed to the clerk of the district court. If a 26 payment made by a person owing court debt between January 1, 27 2021, and the effective date of the bill reduces the total 28 amount of court debt owed to zero, the department of revenue 29 shall issue a refund to the person in the amount attributable 30 to the processing fee added to the court debt. Code section 31 602.8107(3)(b)(2) is repealed on January 1, 2023. 32 Current law allows the county attorney or the county 33 attorney’s designee to collect a percentage of court debt 34 collected after the court debt is deemed delinquent, but not 35 -7- LSB 1174SV (3) 89 as/rh 7/ 9

S.F. 367 for amounts collected for restitution involving pecuniary 1 damages, the victim compensation fund, the crime services 2 surcharge, the sex offender civil penalty, the agricultural 3 theft surcharge, or amounts collected as a result of written 4 off or setoff debt. The bill amends debts for which the county 5 attorney is not entitled to include in the amounts collected 6 for the domestic and sexual abuse crimes surcharge. 7 The bill provides that court debt that has been assigned 8 to the department of revenue for collection may be charged 9 off from active collection by the director of the department 10 of revenue if the person owing the court debt is deceased 11 and there are no assets in the person’s estate or there are 12 no assets available for the payment of court debt under Code 13 section 633.425 or the person owing the court debt cannot be 14 found after diligent inquiry and the director of the department 15 of revenue determines the department will not be able to locate 16 the person owing the court debt. 17 Court debt for any of the following shall not be charged 18 off until 65 years after the date of imposition: victim 19 restitution, the victim compensation fund, a criminal 20 penalty surcharge, a sex offender civil penalty, a drug abuse 21 resistance education surcharge, a law enforcement initiative 22 surcharge, a county enforcement surcharge, or fees charged 23 pursuant to Code section 356.7. Charged off debts shall 24 remain due and owing, but the judicial branch shall close the 25 corresponding case file for the purposes of uncollectable debt 26 pursuant to the bill. 27 The county attorney or the county attorney’s designee may 28 collect court debt after the court debt is deemed delinquent; 29 however, the provision does not apply to amounts collected 30 for restitution involving pecuniary damages, the victim 31 compensation fund, the crime victim surcharge, the human 32 trafficking victim surcharge, the domestic and sexual abuse 33 crimes surcharge, the agricultural theft surcharge, the sex 34 offender civil penalty, or under Code section 8A.504 (setoff 35 -8- LSB 1174SV (3) 89 as/rh 8/ 9

S.F. 367 procedures). 1 The bill provides that an appellate court shall not review or 2 modify any issue related to the defendant’s ability to pay a 3 permanent restitution order entered at the time of sentencing 4 unless the defendant has exhausted the defendant’s remedies 5 under Code section 910.7 and obtained a ruling from the 6 district court prior to the issue being raised in the appellate 7 court. 8 The bill changes the headnote for Code section 911.2B to 9 domestic and sexual abuse crimes surcharge. 10 The bill provisionally rescinds the Iowa administrative 11 code rule concerning a fee for the collection of court debt. 12 The rule provides that a fee of 15 percent of the amount of 13 each court debt is imposed on each court debt that has been 14 assigned to the department of revenue for collection under Code 15 section 602.8107(3). The bill provides that the department of 16 revenue shall receive 15 percent of all court debt payments 17 collected on cases assigned to the department of revenue for 18 collection to reflect the cost of processing, which makes the 19 rule unnecessary. 20 The bill provides that the sections of the bill amending Code 21 sections 602.8105(2)(h) (relating to civil penalties for sex 22 offenders) and 602.8107(3) (relating to the collection of court 23 debt by the department of revenue) take effect upon enactment. 24 The section of the bill amending Code section 602.8105(2)(h) 25 applies retroactively to June 25, 2020, and the section of the 26 bill amending Code section 602.8107(3) applies retroactively 27 to January 1, 2021. 28 -9- LSB 1174SV (3) 89 as/rh 9/ 9