Senate File 2383 - Reprinted SENATE FILE 2383 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SSB 3253) (As Amended and Passed by the Senate March 25, 2010 ) A BILL FOR An Act relating to the collection of debt obligations owed the 1 state and cities and establishing a state debt coordinator, 2 providing a fee, and including effective date provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 SF 2383 (4) 83 jm/sc

S.F. 2383 Section 1. Section 8A.504, subsection 3, Code 2009, is 1 amended to read as follows: 2 3. In the case of multiple claims to payments filed under 3 this section, priority shall be given to claims filed by the 4 child support recovery unit or the foster care recovery unit, 5 next priority shall be given to claims filed by the clerk of 6 the district court, next priority shall be given to claims 7 filed by the college student aid commission, next priority 8 shall be given to claims filed by the investigations division 9 of the department of inspections and appeals, next priority 10 shall be given to claims filed by a clerk of the district 11 court, and last priority shall be given to claims filed by 12 other state agencies. In the case of multiple claims in which 13 the priority is not otherwise provided by this subsection, 14 priority shall be determined in accordance with rules to be 15 established by the director. 16 Sec. 2. Section 321.40, subsection 6, Code Supplement 2009, 17 is amended to read as follows: 18 6. a. The department or the county treasurer shall refuse 19 to renew the registration of a vehicle registered to the 20 applicant if the department or the county treasurer knows that 21 the applicant has a delinquent account, charge, fee, loan, 22 taxes, or other indebtedness owed to or being collected by the 23 state, from information provided pursuant to sections 8A.504 24 and 421.17. An applicant may contest this action by requesting 25 a contested case proceeding from the agency that referred the 26 debt for collection pursuant to section 8A.504. The department 27 of revenue and the department of transportation shall notify 28 the county treasurers through the distributed teleprocessing 29 network of persons who owe such a delinquent account, charge, 30 fee, loan, taxes, or other indebtedness. 31 b. The county treasurer of the county of the person’s 32 residence and in which the person’s vehicle is registered, 33 in cooperation with the department of revenue, may collect 34 delinquent taxes including penalties and interest owed to 35 -1- SF 2383 (4) 83 jm/sc 1/ 22

S.F. 2383 the state from a person applying for renewal of a vehicle 1 registration. The applicant may remit full payment of the 2 taxes including applicable penalties and interest, along with 3 a processing fee of five dollars, to the county treasurer at 4 the time of registration renewal. Upon full payment of the 5 required taxes including applicable penalties and interest, 6 the processing fee, and the vehicle registration fee, the 7 county treasurer shall issue the registration to the person. 8 A county treasurer collecting on behalf of the department of 9 revenue shall update the vehicle registration records through 10 the distributed teleprocessing network on a daily basis for 11 all persons who have paid taxes pursuant to this subsection. 12 A county treasurer shall forward all funds collected for the 13 department of revenue to the department of revenue. 14 Sec. 3. Section 321.40, subsection 9, Code Supplement 2009, 15 is amended to read as follows: 16 9. a. The clerk of the district court shall notify the 17 county treasurer of any delinquent court debt, as defined in 18 section 602.8107, which is being collected by the centralized 19 collection unit of the department of revenue pursuant to 20 section 602.8107, subsection 3, or the county attorney pursuant 21 to section 602.8107, subsection 4. The county treasurer shall 22 refuse to renew the vehicle registration of the applicant upon 23 such notification from the clerk of the district court in 24 regard to such applicant. 25 b. If the applicant enters into or renews a payment plan 26 that is satisfactory to the centralized collection unit of 27 the department of revenue, the county attorney , or the county 28 attorney’s designee, the centralized collection unit or 29 the county attorney shall provide the county treasurer with 30 written or electronic notice of the payment plan within five 31 days of entering into such a plan. The county treasurer shall 32 temporarily lift the registration hold on an applicant for a 33 period of ten days if the treasurer receives such notice in 34 order to allow the applicant to register a vehicle for the 35 -2- SF 2383 (4) 83 jm/sc 2/ 22

S.F. 2383 year. If the applicant remains current with the payment plan 1 entered into with the centralized collection unit or the county 2 attorney or the county attorney’s designee, subsequent lifts 3 of registration holds shall be granted without additional 4 restrictions. 5 Sec. 4. Section 321.152, Code 2009, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 2A. The five dollar processing fee charged 8 by a county treasurer for collection of tax debt owed to the 9 department of revenue pursuant to section 321.40, subsection 6, 10 shall be retained for deposit in the county general fund. 11 Sec. 5. Section 321.153, Code 2009, is amended to read as 12 follows: 13 321.153 Treasurer’s report to department. 14 1. The county treasurer on the tenth day of each month shall 15 certify to the department a full and complete statement of all 16 fees and penalties received by the county treasurer during 17 the preceding calendar month and shall remit all moneys not 18 retained for deposit under section 321.152 to the treasurer of 19 state. 20 2. The distributed teleprocessing network shall be used 21 in the collection, receipting, accounting, and reporting of 22 any fee collected through the registration renewal or title 23 process, with sufficient time and financial resources provided 24 for implementation. 25 3. This section does not apply to fees collected or retained 26 by a county treasurer pursuant to participation in county 27 issuance of driver’s licenses under chapter 321M. 28 4. This section does not apply to processing fees charged by 29 a county treasurer for the collection of tax debt owed to the 30 department of revenue pursuant to section 321.40. 31 Sec. 6. NEW SECTION . 364.22B Collection of judgment debt. 32 1. As used in this section, “judgment debt” means any 33 criminal penalty, any personal judgment for a civil penalty, 34 or any personal or in rem judgment for the costs of abating a 35 -3- SF 2383 (4) 83 jm/sc 3/ 22

S.F. 2383 nuisance or other violation, owing to a city in any proceeding 1 brought as a municipal infraction under section 364.22, or in a 2 civil nuisance proceeding under chapter 657, or in a criminal 3 proceeding for a misdemeanor violation under a city ordinance. 4 2. Judgment debt owing to a city is deemed delinquent if it 5 is not paid within thirty days after the date it is assessed. 6 An amount which was ordered by the court to be paid on a date 7 fixed in the future is deemed delinquent if it is not received 8 by the clerk of court within thirty days after the fixed date 9 set out in the court order. If an amount was ordered to be 10 paid in installments and an installment is not received within 11 thirty days after the date it is due, the entire amount of the 12 judgment debt is deemed delinquent. 13 3. a. A city may contract with a private collection 14 designee for the collection of judgment debt sixty days after 15 the judgment debt in a case is deemed delinquent pursuant to 16 subsection 2. 17 b. The contract shall provide for a collection fee of up 18 to twenty-five percent of the amount of the balance of the 19 judgment debt in a case deemed delinquent. The collection 20 fee shall be added to the amount of the judgment debt deemed 21 delinquent. The amount of the judgment debt deemed delinquent 22 and the collection fee shall be owed by and collected from the 23 defendant. The collection fee shall be used to compensate the 24 private collection designee. 25 Sec. 7. Section 421.17, subsection 27, Code 2009, is amended 26 by adding the following new paragraph: 27 NEW PARAGRAPH . k. A county treasurer may collect delinquent 28 taxes, including penalties and interest, administered by 29 the department in conjunction with renewal of a vehicle 30 registration as provided in section 321.40, subsection 6, 31 paragraph “b” , and rules adopted pursuant to this paragraph. 32 County treasurers shall be given access to information 33 required for the collection of delinquent taxes, including 34 penalties and interest, as necessary to accomplish the 35 -4- SF 2383 (4) 83 jm/sc 4/ 22

S.F. 2383 purposes of section 321.40, subsection 6, paragraph “b” . The 1 confidentiality provisions of sections 422.20 and 422.72 do not 2 apply to information provided by the department to a county 3 treasurer pursuant to this paragraph. A county treasurer 4 collecting taxes, penalties, and interest administered by 5 the department is subject to the requirements and penalties 6 of the confidentiality laws of this state regarding tax or 7 indebtedness information. The director shall adopt rules to 8 implement the collection of tax debt as authorized in section 9 321.40 and this paragraph. 10 Sec. 8. Section 421.17, Code 2009, is amended by adding the 11 following new subsection: 12 NEW SUBSECTION . 31. a. To the extent permissible by 13 federal law, to subpoena certain records held by a public or 14 private utility company with respect to an individual who has 15 a debt or obligation placed with the centralized collection 16 unit of the department. The subpoena authority granted in this 17 subsection may be used only after reasonable efforts have been 18 made by the centralized collection unit to identify and locate 19 the individual. 20 b. The department may subpoena customer records in order to 21 obtain a telephone number and last known address, but shall not 22 request or require the disclosure of transaction information, 23 account activity, or proprietary information. 24 c. A public or private utility company shall respond to the 25 subpoenas. The subpoenas shall not be served more frequently 26 than quarterly. 27 d. The burden of showing reasonable cause to believe that 28 the documents or records sought by the subpoena are necessary 29 to assist the department under this subsection shall be upon 30 the director. In administering this subsection, the director 31 and the department shall comply with all applicable state and 32 federal laws pertaining to the confidentiality or privacy 33 of individuals or public or private utility companies. The 34 information and customer records obtained by the department 35 -5- SF 2383 (4) 83 jm/sc 5/ 22

S.F. 2383 pursuant to this subsection are confidential records and are 1 not subject to requests for examination pursuant to chapter 22. 2 e. A public or private utility company shall not be held 3 liable for any action arising as a result of providing the 4 records described in paragraph “b” or for any other action taken 5 reasonably and in good faith to comply with this subsection. 6 f. As used in this subsection, “public or private utility 7 company” means a public utility, cable, video, or satellite 8 television company, cellular telephone company, or internet 9 service provider. 10 Sec. 9. NEW SECTION . 421C.1 State debt coordinator —— 11 established —— duties —— authority. 12 1. The office of the state debt coordinator is established 13 within the department of revenue for administrative 14 and budgetary purposes. The office is to be headed and 15 administered by the state debt coordinator. 16 a. The governor shall appoint the coordinator, subject 17 to senate confirmation. The coordinator shall possess an 18 expert knowledge of and skills in the field of debt collection 19 and have an intricate understanding of the workings of state 20 government. The coordinator’s term of office shall be four 21 years, beginning July 1 of the year of appointment and ending 22 on June 30 of the year of expiration. 23 b. If a vacancy occurs in the office of the state debt 24 coordinator, the vacancy shall be filled for the unexpired 25 portion of the term in the same manner as the original 26 appointment was made. 27 c. The coordinator shall not engage in any occupation, 28 business, or profession that would interfere with or be 29 inconsistent with the coordinator’s duties. The coordinator 30 shall not serve on or under any committee of any political 31 party or actively campaign on behalf of a candidate for 32 elective office. 33 2. The duties of the coordinator shall include all of the 34 following: 35 -6- SF 2383 (4) 83 jm/sc 6/ 22

S.F. 2383 a. Coordinating the internal operations of the office and 1 developing and implementing policies and procedures designed to 2 ensure the efficient administration of the office. 3 b. Appointing all personnel deemed necessary for the 4 administration of the functions of the office as provided by 5 this chapter. 6 c. Developing and recommending legislative proposals 7 deemed necessary for the continued efficiency of the office’s 8 functions and reviewing legislative proposals related to 9 matters within the office’s purview. 10 d. Reviewing the debt collection practices of each branch 11 of state government, except the practices related to the 12 collection of delinquent child support obligations. 13 e. Coordinating the collection efforts of each branch of 14 state government. 15 f. Making recommendations to the general assembly to improve 16 and increase debt collection efficiencies and practices. 17 g. Filing a notice of a lien and negotiating a settlement 18 as provided in section 421C.2. 19 h. Managing the debt settlement program established in 20 section 421C.3. 21 i. Accepting and maintaining county attorney collection 22 reports required under section 602.8107, subsection 4. 23 j. Accepting and reviewing county attorney applications to 24 the debt settlement program as required by section 421C.4. 25 k. Adopting rules deemed necessary for the administration of 26 this chapter in accordance with chapter 17A. 27 l. Assisting the director of revenue in preparing the annual 28 budget request related to the office pursuant to section 8.23. 29 m. Reporting annually to the department of management 30 and the legislative services agency on additional full-time 31 equivalent positions added during the previous fiscal year and 32 the direct and indirect costs related to adding such full-time 33 equivalent positions. 34 3. The state debt coordinator shall have the authority to 35 -7- SF 2383 (4) 83 jm/sc 7/ 22

S.F. 2383 appoint a designee to carry out certain duties provided in this 1 chapter. 2 4. Notwithstanding any other law to the contrary, the office 3 of the state debt coordinator shall be provided access to all 4 state debt collection information, including full viewing 5 access to the Iowa court information system, for the purpose 6 of collecting personal identifying information and collecting 7 or coordinating debt collection efforts. This section does 8 not apply to debt collection information related to delinquent 9 child support obligations. 10 5. Personal identifying information or financial 11 information obtained by the state debt coordinator or a 12 designee shall not be divulged to any person or entity, other 13 than to the debtor, unless the information is used in a matter 14 related to the collection of a debt obligation owed the state. 15 Sec. 10. NEW SECTION . 421C.2 Notice of lien in civil 16 action. 17 1. When a debt obligation is owed the state, the state 18 debt coordinator shall have a lien, to the extent of the debt 19 obligation owed, upon all monetary claims which the debtor may 20 have against third parties. A lien under this section is not 21 effective unless the state debt coordinator files a notice of 22 lien with the clerk of the district court in the county where 23 the civil action identified by the state debt coordinator is 24 filed and sends notice of the lien to the debtor and to the 25 debtor’s attorney or other representative, if applicable. To 26 be effective against a monetary claim, the notice of lien 27 must be filed before a third party has concluded a final 28 settlement with the debtor, the debtor’s attorney, or other 29 representative. The lien shall only be effective against the 30 monetary claim in the civil action against which the lien is 31 filed. The third party shall obtain a written determination 32 from the state debt coordinator concerning the amount of the 33 lien before a settlement is deemed final for purposes of 34 this section. A compromise, including but not limited to a 35 -8- SF 2383 (4) 83 jm/sc 8/ 22

S.F. 2383 settlement, waiver, or release, of a monetary claim under 1 this section does not defeat the state debt coordinator’s 2 lien except upon written agreement by the coordinator or the 3 coordinator’s designee. A settlement, award, or judgment 4 structured in any manner that does not include a debt 5 obligation owed the state does not defeat the state court debt 6 coordinator’s lien if there is any recovery by the debtor 7 unless a written agreement has been entered into between the 8 state debt coordinator or the coordinator’s designee and the 9 debtor. 10 2. The judicial branch shall cooperate with the state debt 11 coordinator to determine the most efficient way to identify a 12 debtor who has a claim against a third party. The state debt 13 coordinator shall be provided viewing access to the Iowa court 14 information system as provided in section 421C.1 to determine 15 if a debtor owes a debt obligation to the state. The debtor’s 16 attorney shall not have the responsibility to notify the state 17 that a debtor has filed a civil action against a third party. 18 3. The state debt coordinator’s lien is valid and binding 19 on an attorney, insurer, or other third party only upon actual 20 notice given by the state debt coordinator. 21 4. An insurer or attorney representing a debtor on a 22 monetary claim upon which the state debt coordinator has a lien 23 under this section shall notify the state debt coordinator of a 24 negotiated settlement or verdict, if actual notice of the lien 25 has been provided in the following manner: 26 a. The mailing and deposit in a United States post office 27 or public mailing box of the notice, addressed to the debtor 28 and to the debtor’s attorney or other representative, if 29 applicable, at the location used for service of original 30 notice. 31 b. The mailing and deposit in a United States post office or 32 public mailing box of the notice, addressed to a third party, 33 at the location used for service of original notice. 34 5. a. Upon resolution of the civil action against which 35 -9- SF 2383 (4) 83 jm/sc 9/ 22

S.F. 2383 a lien has been filed and actual notice of the lien has been 1 given, the court costs and reasonable attorney fees and 2 expenses, hospital liens filed pursuant to chapter 582 and 3 other subrogated medical expenses shall first be deducted from 4 any total judgment or settlement obtained. At least one-third 5 of the remaining balance shall then be deducted and paid to the 6 debtor. From the remaining balance, the state debt coordinator 7 shall have the authority to negotiate a settlement of any debt 8 obligation owed the state that is noted in the lien, including 9 forgiving the entire balance due, based upon the circumstances 10 of the case, costs incurred in pursuing the matter, and the 11 element of the damages awarded. After deducting payments in 12 accordance with this subsection and negotiating a settlement 13 of the lien, any payments to satisfy the lien shall be paid 14 to the state debt coordinator. The state debt coordinator 15 shall transfer any moneys collected to the appropriate accounts 16 to satisfy the debt owed. The state debt coordinator has 17 authority to file a satisfaction of the lien. 18 b. In circumstances where a lien encompasses multiple claims 19 by state entities, the priority of payment made to the state 20 debt coordinator shall first be a credit against tax due as 21 provided in section 422.73, and the remaining balance shall be 22 distributed in accordance with section 8A.504, subsection 3. 23 c. During the negotiation process pursuant to this section 24 the state debt coordinator shall make a determination whether 25 the amount to be received by the coordinator under paragraph 26 “a ” shall be considered as full payment of the debt obligation 27 owed the state. If the state debt coordinator settles any debt 28 obligation owed the state that is for less than the actual 29 amount owed the state, the state debt coordinator may determine 30 that the debt obligation owed the state is paid in full. If 31 settlement is reached that is for less than the amount of the 32 debt obligation owed the state, and the state debt coordinator 33 notifies the applicable state department, agency, or branch 34 that the debt obligation is paid in full, the state department, 35 -10- SF 2383 (4) 83 jm/sc 10/ 22

S.F. 2383 agency, or branch receiving the notification shall indicate in 1 the records of the state department, agency, or branch that the 2 debt obligation owed the department, agency, or branch is paid 3 in full. 4 6. The state debt coordinator may enforce its lien by a 5 civil action against any liable third party if a judgment or 6 settlement was paid to the debtor without notifying the state 7 debt coordinator as provided in this section. 8 7. For purposes of this section the term “third party” 9 includes an individual, institution, corporation, or public or 10 private agency which is or may be liable to pay all or part of a 11 debtor’s monetary claim. For purposes of this section, “third 12 party” does not include a financial institution as defined in 13 section 527.2. 14 Sec. 11. NEW SECTION . 421C.3 Debt settlement program. 15 1. As used in this section, “eligible debt” means all 16 delinquent court debt obligations defined pursuant to section 17 602.8107 and owed the state, except as provided in subsection 18 3. “Eligible debt” includes any interest and penalties assessed 19 against such debt obligations. 20 2. The state debt coordinator, in consultation with the 21 other branches of state government, shall establish a debt 22 settlement program. 23 3. The following debt obligations are ineligible for the 24 program: 25 a. Delinquent debt obligations that were imposed less than 26 four years prior to the date of the application. 27 b. Victim restitution as defined in section 910.1. 28 c. Civil penalties assessed pursuant to section 321.218A, 29 321A.32A, or 321J.17. 30 d. Jail fees charged pursuant to section 356.7. 31 4. The following persons are ineligible for the program: 32 a. A person whose income level exceeds two hundred percent 33 of the United States poverty level as defined by the most 34 recently revised poverty income guidelines published by the 35 -11- SF 2383 (4) 83 jm/sc 11/ 22

S.F. 2383 United States department of health and human services. 1 (1) The coordinator may determine that a person whose 2 income is at or below two hundred percent of the United States 3 poverty level as defined by the most recently revised poverty 4 income guidelines published by the United States department of 5 health and human services, is ineligible for the program if the 6 debt coordinator determines the person is able to pay the full 7 amount of the delinquent debt. 8 (2) In making the determination of a person’s ability to 9 pay the full amount of the delinquent debt, the state debt 10 coordinator shall consider not only the person’s income, but 11 also the availability of any assets subject to execution, 12 including but not limited to cash, stocks, bonds, and any other 13 property which may be applied to the eligible debt. 14 b. A person who is in jail, prison, or who is under 15 supervision during the period of incarceration or supervision. 16 c. A person who has previously participated in the program. 17 4A. A person paying a delinquent court debt obligation 18 through an established payment plan with the clerk of the 19 district court, with the centralized collection unit of the 20 department of revenue or its designee, with a county attorney 21 or the county attorney’s designee, or with a private collection 22 designee, is eligible for the debt settlement program if the 23 person and debt are eligible and if the collecting entity is 24 a debt settlement collection designee as provided in section 25 421C.4. The distribution of any moneys collected by the debt 26 settlement collection designee shall be as provided in section 27 421C.4. 28 5. Under the program the state debt coordinator is 29 authorized to forgive not more than fifty percent of all 30 eligible debt obligations due. 31 6. Payment to the state debt coordinator under the program 32 shall be provided in a lump sum. 33 7. The program shall provide that upon written application 34 and payment of the agreed upon percentage of eligible debt 35 -12- SF 2383 (4) 83 jm/sc 12/ 22

S.F. 2383 obligation due to the state, the state shall forgive any 1 remaining balance of eligible debt obligation due and shall 2 not seek any contempt or civil action or criminal prosecution 3 against the person related to the eligible debt obligation 4 forgiven under the program. Upon the forgiveness of the 5 remaining balance of the eligible debt pursuant to the program, 6 the eligible debt shall be considered by the state as paid in 7 full. 8 8. The written application shall contain all case numbers 9 associated with the eligible debt obligation due and a general 10 description of such debt. 11 9. Failure to pay the amount agreed upon by the date 12 specified shall bar the person’s participation in the program 13 for life. 14 10. A person who participates in the program shall 15 relinquish all administrative and judicial rights to challenge 16 the imposition and the amount of the eligible debt obligation 17 owed. 18 11. If a driver’s license is reinstated as a result of 19 participating in the program, the person shall be required to 20 pay a reinstatement fee as provided in section 321.191, any 21 civil penalty assessed pursuant to section 321.218A, 321A.32A, 22 or 321J.17, and provide proof of financial responsibility 23 pursuant to section 321A.17, if otherwise required by law. 24 12. Upon paying the amount required under subsection 5, 25 the state debt coordinator shall provide the person with a 26 certified document detailing the case numbers paid in full 27 under the program. Any state department, agency, or branch 28 shall, upon the filing of a certified document detailing the 29 cases paid in full under the program, indicate in the records 30 of the department, agency, or branch that the case is in fact 31 paid in full with respect to the eligible debt obligations paid 32 under the program. 33 13. The coordinator shall prepare and make available 34 debt settlement application forms which contain requirements 35 -13- SF 2383 (4) 83 jm/sc 13/ 22

S.F. 2383 for approval of an application. The coordinator may deny an 1 application that is inconsistent with this section. 2 14. Any department, agency, or branch shall cooperate with 3 the state debt coordinator in administering the program. 4 15. The director of revenue shall establish an account 5 and shall deposit in the account all receipts received under 6 the program established by the state debt coordinator. Not 7 later than the fifteenth day of each month, the director shall 8 deposit amounts received with the treasurer of state for 9 deposit in the general fund of the state. 10 16. The state debt coordinator shall submit an annual 11 report by January 1 to the chairpersons and ranking members 12 of the joint appropriations subcommittee on justice systems 13 and the legislative services agency, detailing the amount of 14 debt obligations settled under the program, including the 15 classification of the debt settled and the county of residence 16 of persons who had debt settled under the program or with a 17 debt settlement designee as provided in section 421C.4. 18 Sec. 12. NEW SECTION . 421C.4 Debt settlement collection 19 by designees. 20 1. As used in this section “county attorney” means a single 21 county attorney office or a group of county attorney offices 22 whose counties have entered into an agreement pursuant to 23 chapter 28E pursuant to section 602.8107, subsection 4, to 24 collect delinquent court debt. 25 2. The centralized collection unit of the department of 26 revenue and a county attorney collecting delinquent court debt 27 pursuant to section 602.8107, subsection 4, are eligible to 28 act as the state debt coordinator’s designee under the debt 29 settlement program. If the centralized collection unit of 30 the department of revenue or a county attorney serves as the 31 state debt coordinator’s designee the procedures of the program 32 established in section 421C.3 apply to the designee except as 33 otherwise provided in this section. 34 3. a. In order to be eligible to settle debt under the 35 -14- SF 2383 (4) 83 jm/sc 14/ 22

S.F. 2383 program, a county attorney shall first make application to 1 the state debt coordinator requesting authority to act as the 2 state debt coordinator’s designee. The state debt coordinator 3 shall approve each application, upon a showing of commitment 4 to collect delinquent court debt pursuant to section 602.8107, 5 subsection 4, and upon reaffirmation to continue collection 6 efforts pursuant to section 602.8107, subsection 4. A county 7 attorney is not eligible to participate in the debt settlement 8 program if the county attorney has been deemed ineligible under 9 section 602.8107, subsection 4, paragraph “g” . 10 b. If a county attorney is approved to act as the state 11 debt coordinator’s designee under the debt settlement program 12 any eligible court debt settled that is more than four years 13 old shall be deposited with the clerk of the district court as 14 provided in section 602.8107, subsection 4, and distributed 15 to the county in accordance with section 602.8107, subsection 16 4. For purposes of calculating the amounts distributed to 17 the county, the amounts collected by the county attorney 18 when acting as the state debt coordinator designee shall be 19 considered as any other debt collected and credited to the 20 county under the county attorney collection program pursuant to 21 section 602.8107, subsection 4. The remainder collected by the 22 county attorney acting as the state debt coordinator’s designee 23 shall be remitted to the state court administrator as provided 24 in section 602.8107, subsection 4. 25 4. For those counties in which a county attorney is not 26 acting as the state debt coordinator’s designee under the debt 27 settlement program, or for cases the centralized collection 28 unit is collecting upon, the centralized collection unit of the 29 department of revenue may serve as the state debt coordinator’s 30 designee. 31 Sec. 13. Section 422.20, subsection 3, paragraph a, Code 32 2009, is amended to read as follows: 33 a. Unless otherwise expressly permitted by section 8A.504, 34 section 421.17, subsections 22, 23, and 26, sections and 35 -15- SF 2383 (4) 83 jm/sc 15/ 22

S.F. 2383 subsection 27, paragraph “k” , section 252B.9, section 321.40, 1 subsection 6, sections 321.120, 421.19, 421.28, 422.72, and 2 452A.63, and this section, a tax return, return information, 3 or investigative or audit information shall not be divulged to 4 any person or entity, other than the taxpayer, the department, 5 or internal revenue service for use in a matter unrelated to 6 tax administration. 7 Sec. 14. Section 422.72, subsection 3, paragraph a, Code 8 2009, is amended to read as follows: 9 a. Unless otherwise expressly permitted by section 8A.504, 10 section 421.17, subsections 22, 23, and 26, sections and 11 subsection 27, paragraph “k” , section 252B.9, section 321.40, 12 subsection 6, sections 321.120, 421.19, 421.28, 422.20, and 13 452A.63, and this section, a tax return, return information, 14 or investigative or audit information shall not be divulged to 15 any person or entity, other than the taxpayer, the department, 16 or internal revenue service for use in a matter unrelated to 17 tax administration. 18 Sec. 15. Section 602.8107, subsection 3, unnumbered 19 paragraph 1, Code Supplement 2009, is amended to read as 20 follows: 21 Thirty days after court debt has been assessed, or if an 22 installment payment is not received within thirty days after 23 the date it is due, the judicial branch may shall assign a 24 case to the centralized collection unit of the department of 25 revenue or its designee to collect debts owed to the clerk 26 of the district court for a period of sixty days one year . 27 In addition, court debt which is being collected under an 28 installment agreement pursuant to section 321.210B which is in 29 default that remains delinquent may shall also be assigned to 30 the centralized collection unit of the department of revenue or 31 its designee for a period of one year. If a county attorney has 32 filed with the clerk of the district court a full commitment 33 to collect delinquent court debt pursuant to subsection 4, the 34 court debt in a case shall be assigned after sixty days to the 35 -16- SF 2383 (4) 83 jm/sc 16/ 22

S.F. 2383 county attorney as provided in subsection 4, if the court debt 1 in a case has not been placed in an established payment plan 2 by the centralized collection unit. For all other delinquent 3 court debt not assigned to a county attorney pursuant to 4 subsection 4, the delinquent court debt shall be assigned to 5 a private collection designee as provided in subsection 5, 6 after one year, if the delinquent court debt in a case has not 7 been placed in an established payment plan by the centralized 8 collection unit. 9 Sec. 16. Section 602.8107, subsection 3, paragraph c, Code 10 Supplement 2009, is amended by striking the paragraph. 11 Sec. 17. Section 602.8107, subsection 4, unnumbered 12 paragraph 1, Code Supplement 2009, is amended to read as 13 follows: 14 The county attorney or the county attorney’s designee 15 may collect court debt sixty days after the court debt is 16 deemed delinquent pursuant to subsection 2. In order to 17 receive a percentage of the amounts collected pursuant to this 18 subsection, the county attorney must file annually with the 19 clerk of the district court on or before July 1 a notice of full 20 commitment to collect delinquent court debt and must file on 21 the first day of each month a list of the cases in which the 22 county attorney or the county attorney’s designee is pursuing 23 the collection of delinquent court debt. The list shall 24 include a list of cases where delinquent court debt is being 25 collected under an installment agreement pursuant to section 26 321.210B , and a list of cases in default which are no longer 27 being collected under an installment agreement but remain 28 delinquent for all cases assigned to the county for collection 29 by the court . The annual notice shall contain a list of 30 procedures which will be initiated by the county attorney. 31 Sec. 18. Section 602.8107, subsection 4, paragraph f, Code 32 Supplement 2009, is amended by striking the paragraph. 33 Sec. 19. Section 602.8107, subsection 4, Code Supplement 34 2009, is amended by adding the following new paragraphs: 35 -17- SF 2383 (4) 83 jm/sc 17/ 22

S.F. 2383 NEW PARAGRAPH . g. Beginning July 1, 2010, and every fiscal 1 year thereafter, amounts collected and distributed pursuant to 2 this subsection shall be equal to or greater than twenty-five 3 thousand dollars for each county or twenty-five thousand 4 dollars in the aggregate for counties that have entered into an 5 agreement pursuant to chapter 28E. If a county, or counties 6 that have entered into a chapter 28E agreement, fails to meet 7 the minimum threshold established in this paragraph, the 8 county, or counties under the chapter 28E agreement, shall be 9 ineligible to participate in the county attorney collection 10 program the following fiscal year. In the event a county is 11 ineligible to collect under this program, the county may apply 12 to the state debt coordinator established in section 421C.1 to 13 reenter the program following the fiscal year of ineligibility. 14 NEW PARAGRAPH . h. A county participating in the county 15 attorney collection program shall file an annual collection 16 report with the state debt coordinator established in section 17 421C.1. Counties that have entered into a chapter 28E 18 agreement to participate in the county attorney collection 19 program may file one report, detailing collections in each 20 county that is a party to the agreement. 21 Sec. 20. Section 602.8107, subsection 5, paragraphs a and b, 22 Code Supplement 2009, are amended to read as follows: 23 a. The judicial branch may shall contract with a private 24 collection designee for the collection of court debt sixty 25 days one year after the court debt in a case is deemed 26 delinquent pursuant to subsection 2 if the county attorney 27 is not collecting the court debt in a case pursuant to 28 subsection 4. The judicial branch shall solicit requests for 29 proposals prior to entering into any contract pursuant to this 30 subsection. 31 b. The contract shall provide for a collection fee equal of 32 up to twenty-five percent of the amount of the court debt in 33 a case deemed delinquent. The collection fee as calculated 34 shall be added to the amount of the court debt deemed 35 -18- SF 2383 (4) 83 jm/sc 18/ 22