House Study Bill 69 - IntroducedA Bill ForAn Act 1relating to the application fee and annual fee imposed
2for nonassistance child support cases.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 252B.4, Code 2019, is amended to read as
2follows:
   3252B.4  Nonassistance cases.
   41.  The child support and paternity determination services
5established by the department pursuant to this chapter and
6other appropriate services provided by law including but
7not limited to the provisions of chapters 239B, 252A, 252C,
8252D, 252E, 252F, 598, and 600B shall be made available by
9the unit to an individual not otherwise eligible as a public
10assistance recipient upon application by the individual for the
11services or upon referral as described in subsection 5 4. The
12application shall be filed with the department.
   131.  The director shall require an application fee of
14twenty-five dollars.
   152.  The director may collect a fee to cover the costs
16incurred by the department for service of process, genetic
17testing and court costs if the entity providing the service
18charges a fee for the services.
   193.  Fees collected pursuant to this section shall be
20considered repayment receipts, as defined in section 8.2, and
21shall be used for the purposes of the unit. The director or a
22designee shall keep an accurate record of the fees collected
23and expended.
   244.  An application fee paid by a recipient of services
25pursuant to subsection 1 may be recovered by the unit from the
26person responsible for payment of support and if recovered
27shall be used to reimburse the recipient of services.
   28a.  The fee shall be an automatic judgment against the person
29responsible to pay support.
   30b.  This subsection shall serve as constructive notice that
31the fee is a debt due and owing, is an automatic judgment
32against the person responsible for support, and is assessed
33as the fee is paid by a recipient of services. The fee may
34be collected in addition to any support payments or support
35judgment ordered, and no further notice or hearing is required
-1-1prior to collecting the fee.
   2c.  Notwithstanding any provision to the contrary, the unit
3may collect the fee through any legal means by which support
4payments may be collected, including but not limited to income
5withholding under chapter 252D or income tax refund offsets,
6unless prohibited under federal law.
   7d.  The unit is not required to file these judgments with
8the clerk of the district court, but shall maintain an accurate
9accounting of the fee assessed, the amount of the fee, and the
10recovery of the fee.
   11e.  Support payments collected shall not be applied to the
12recovery of the fee until all other support obligations under
13the support order being enforced, which have accrued through
14the end of the current calendar month, have been paid or
15satisfied in full.
   16f.  This subsection applies to fees that become due on or
17after July 1, 1992.
   185.    4.  The unit shall also provide child support and
19paternity determination services and shall respond as provided
20in federal law for an individual not otherwise eligible as a
21public assistance recipient if the unit receives a request from
22any of the following:
   23a.  A child support agency.
   24b.  A foreign country as defined in chapter 252K.
25   Sec. 2.  Section 252B.5, subsection 13, paragraph a, Code
262019, is amended to read as follows:
   27a.  Beginning October 1, 2007, implement the provision of
28the federal Deficit Reduction Act of 2005, Pub.L. No.109-171,
29§7310, requiring an annual collections fee of twenty-five
30dollars in child support cases in which the family has never
31received assistance under Tit.IV-A of the federal Social
32Security Act for whom the unit has disbursed at least five
33hundred dollars. When the first five hundred dollars in
34support is disbursed in each federal fiscal year for a family,
35the fee shall be collected from the obligee by retaining
-2-1twenty-five dollars from disbursements to the obligee. If five
2hundred dollars but less than five hundred twenty-five dollars
3is disbursed in any federal fiscal year, any unpaid portion of
4the annual fee shall not accumulate and is not due.
 Impose
5an annual fee, which shall be retained from support collected
6on behalf of the obligee, in accordance with 42 U.S.C.
7§654(6)(B)(ii).
The unit shall send information regarding
8the requirements of this subsection by regular mail to the
9last known address of an affected obligee, or may include the
10information for an obligee in an application for services
11signed by the obligee. In addition, the unit shall take steps
12necessary regarding the fee to qualify for federal funds in
13conformity with the provisions of Tit.IV-D of the federal
14Social Security Act, including receiving and accounting for
15fee payments, as appropriate, through the collection services
16center created in section 252B.13A.
17   Sec. 3.  Section 252H.5, subsections 1 and 4, Code 2019, are
18amended to read as follows:
   191.  A Unless the unit is already providing support
20enforcement service pursuant to chapter 252B, a
parent ordered
21to provide support, who requests a review of a support order
22under subchapter II, shall file an application for services and
23pay an application fee
pursuant to section 252B.4.
   244.  The unit shall, consistent with applicable federal
25law, recover administrative costs in excess of any fees
26collected pursuant to subsections 1, 2, and 3 for providing
27services under this chapter and shall adopt rules providing for
28collection of fees for administrative costs.
29   Sec. 4.  ADMINISTRATIVE RULES — TRANSITION.  Until such
30time as the department of human services adopts administrative
31rules pursuant to chapter 17A as necessary to administer this
32Act, the child support recovery unit may accept applications
33for child support services in accordance with chapter 252B, as
34amended in this Act.
35EXPLANATION
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1The inclusion of this explanation does not constitute agreement with
2the explanation’s substance by the members of the general assembly.
   3This bill relates to fees for services provided by the child
4support recovery unit (unit). Currently, individuals who apply
5for child support services in nonassistance cases pay a $25
6application fee. The bill eliminates the $25 application fee.
   7The bill also amends the provision relating to the payment
8of an annual fee for individuals who receive services from
9the unit in nonassistance cases. The current state statute
10specifies that the annual fee is $25 and is collected from
11the obligee after $500 in support has been distributed to the
12family. Under the bill, which cites to the revised federal
13law, the fee will be $35 and will be collected from the obligee
14after $550 in support has been distributed to the family. By
15citing directly to the federal law rather than specifying an
16amount in state statute, any changes in the federal law will
17automatically govern the amount of the annual fee without the
18need for changes in the state statute.
   19The bill also makes conforming changes.
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