Senate Study Bill 1146 - IntroducedA Bill ForAn Act 1relating to certain financial obligations, including
2under the consumer credit code, and including under the
3criminal and juvenile justice system by modifying criminal
4and civil surcharges, fines, fees, costs, and court debt,
5providing civil penalties, and including effective date and
6retroactive applicability provisions.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 537.1301, subsection 12, Code 2021, is
2amended to read as follows:
   312.  “Consumer credit transaction” means a consumer credit
4sale or consumer loan, or a refinancing or consolidation
5thereof, or a consumer lease, or a consumer rental purchase
6agreement. “Consumer credit transaction” does not include
7goods, services, or any other benefits provided by or on behalf
8of the state or a state agency.

9   Sec. 2.  Section 602.8105, subsection 2, paragraph h, Code
102021, is amended to read as follows:
   11h.  For applicable convictions under section 692A.110 prior
12to July 1, 2009, a civil penalty of two hundred ten dollars,
13and for applicable convictions under section 692A.110
on or
14after July 1, 2009 June 25, 2020, a civil penalty of two
15hundred sixty dollars.
16   Sec. 3.  Section 602.8106, subsection 1, Code 2021, is
17amended by adding the following new paragraph:
18   NEW PARAGRAPH.  i.  For submitting a dishonored check for the
19payment of any court debt, thirty dollars.
20   Sec. 4.  Section 602.8107, subsection 1, paragraph a, Code
212021, is amended to read as follows:
   22a.  “Court debt” means all restitution as defined in section
23910.1
, fees, and forfeited bail, and other debt paid to or
24collected by the clerk of the district court
.
25   Sec. 5.  Section 602.8107, subsection 3, Code 2021, is
26amended to read as follows:
   273.  Collection by department of revenue.
   28a.  (1)  Thirty days after court debt has been assessed
29and full payment has not been received, or if an installment
30payment is not received within thirty days after the date it is
31due, the judicial branch shall assign a case to the department
32of revenue, unless the case has been assigned to the county
33attorney under paragraph “c” “d”.
   34(2)  The department of revenue may impose a fee established
35by rule to reflect the cost of processing which shall be added
-1-1to the debt owed to the clerk of the district court.
   2b.  (1)  In addition, court debt which is being collected
3under an installment agreement pursuant to section 321.210B
4 which is in default that remains delinquent shall remain
5assigned to the department of revenue if the installment
6agreement was executed with the department of revenue; or
7to the county attorney or county attorney’s designee if the
8installment agreement was executed with the county attorney
9or county attorney’s designee
 The department of revenue shall
10receive fifteen percent of all court debt payments collected on
11cases assigned to the department of revenue for collection to
12reflect the cost of processing, with the remainder of the court
13debt to be collected by the clerk of the district court for
14distribution in accordance with applicable law
The department
15of revenue shall not receive payment pursuant to this paragraph
16from any court debt collected that is payable to a crime victim
17as pecuniary damages until after the clerk of the district
18court has received the entirety of the court debt payable to
19the crime victim as pecuniary damages.

   20(2)  Payments made by a person under subparagraph (1) between
21January 1, 2021, and the effective date of this Act which added
22the department of revenue processing fee to the debt owed to
23the clerk of the district court pursuant to section 602.8107,
24subsection 3, paragraph “a”, subparagraph (2), Code 2021,
25shall be calculated as if the payment had been made pursuant
26to subparagraph (1) and the department’s fee in subparagraph
27(1) shall be applied to such a payment. The department of
28revenue processing fee added to the debt shall be deducted from
29the amount of court debt owed to the clerk of the district
30court. If a payment made by a person owing court debt between
31January 1, 2021, and the effective date of this Act reduces
32the total amount of court debt owed to zero, the department
33of revenue shall issue a refund to the person in the amount
34attributable to the processing fee added to the court debt.
35This subparagraph is repealed on January 1, 2023.
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   1c.  The centralized debt collection facilities of the
2department of revenue established pursuant to section 421.17,
3subsection 27, shall collect court debt assigned to the
4department of revenue pursuant to this section.
   5c.    d.  Thirty days after court debt has been assessed
6and full payment has not been received, or if an installment
7payment is not received within thirty days after the date it
8is due, and if a county attorney has filed with the clerk
9of the district court a notice of full commitment to collect
10delinquent court debt pursuant to subsection 4, the case shall
11be assigned to the county attorney as provided in subsection 4.
12The judicial branch shall assign cases with delinquent court
13debt to a county attorney in the same format and with the same
14frequency as cases with delinquent court debt are assigned to
15the department of revenue under paragraph “a”, and a county
16attorney shall not be required to file an individual notice
17of full commitment to collect delinquent court debt for each
18assigned case. If the county attorney or the county attorney’s
19designee, while collecting delinquent court debt pursuant to
20subsection 4, determines that a person owes additional court
21debt for which a case has not been assigned by the judicial
22branch, the county attorney or the county attorney’s designee
23shall notify the clerk of the district court of the appropriate
24case numbers and the judicial branch shall assign these cases
25to the county attorney for collection if the additional court
26debt is delinquent.
27   Sec. 6.  Section 602.8107, subsection 4, paragraph a, Code
282021, is amended to read as follows:
   29a.  This subsection does not apply to amounts collected
30for restitution involving pecuniary damages, the victim
31compensation fund, the crime services surcharge, sex offender
32civil penalty
 the human trafficking victim surcharge, domestic
33abuse assault, domestic abuse protective order contempt,
34sexual abuse, stalking, the human trafficking surcharge
the
35 agricultural theft surcharge, or amounts collected as a result
-3-1of procedures initiated under subsection 5 
the sex offender
2civil penalty,
or under section 8A.504.
3   Sec. 7.  Section 602.8107, subsection 5, Code 2021, is
4amended by striking the subsection and inserting in lieu
5thereof the following:
   65.  Uncollectible debt.
   7a.  Court debt that has been assigned to the department of
8revenue for collection pursuant to subsection 3 may be charged
9off from active collection by the director of the department of
10revenue if either of the following conditions exist:
   11(1)  The person owing the court debt is deceased and there
12are no assets in the person’s estate or there are no assets
13available for the payment of court debt under section 633.425.
   14(2)  The person owing the court debt cannot be located
15after diligent inquiry and the director of the department of
16revenue determines the department will not be able to locate
17the person.
   18b.  Court debt for any of the following shall not be charged
19off until sixty-five years from the date of imposition:
   20(1)  Victim restitution.
   21(2)  Victim compensation.
   22(3)  A criminal penalty surcharge.
   23(4)  A sex offender civil penalty.
   24(5)  A drug abuse resistance education surcharge.
   25(6)  A law enforcement initiative surcharge.
   26(7)  A county enforcement surcharge.
   27(8)  Fees charged pursuant to section 356.7.
   28c.  Debt that is charged off shall remain due and owing, but
29the judicial branch shall close the corresponding case file for
30the purposes of collection pursuant to this section.
31   Sec. 8.  Section 692A.110, subsection 2, Code 2021, is
32amended to read as follows:
   332.  In addition to any other penalty, at the time of
34conviction for a public offense committed on or after July 1,
351995, which requires a sex offender to register under this
-4-1chapter, the offender shall be assessed a civil penalty of two
2hundred dollars, to be payable to the clerk of the district
3court as provided in section 602.8105 and distributed as
4provided in section 602.8108. With respect to a conviction
5for a public offense committed on or after July 1, 2009, which
6requires a sex offender to register under this chapter, the
7offender shall be assessed a civil penalty of two hundred fifty
8dollars,
payable to the clerk of the district court as provided
9in section 602.8105 and distributed as provided in section
10602.8108.
11   Sec. 9.  Section 910.3, subsection 8, Code 2021, is amended
12to read as follows:
   138.  The court shall enter a permanent restitution order
14setting out the amount of restitution including the amount of
15public service to be performed as restitution and the persons
16to whom restitution must be paid. A permanent restitution
17order entered at the time of sentencing is part of the final
18judgment of sentence as defined in section 814.6 and shall
19be considered in a properly perfected appeal. An appellate
20court shall not review or modify any issue related to a
21defendant’s ability to pay unless the defendant has exhausted
22the defendant’s remedies under section 910.7 and obtained a
23ruling from the district court prior to the issue being raised
24in the appellate court.

25   Sec. 10.  Section 911.2B, Code 2021, is amended to read as
26follows:
   27911.2B  Domestic abuse assault, domestic abuse protective
28order contempt,
 and sexual abuse, stalking, and human trafficking
29
 crimes surcharge.
   301.  In addition to any other surcharge, the court shall
31assess a domestic abuse assault, domestic abuse protective
32order contempt, sexual abuse, stalking, and human trafficking
33victim surcharge of ninety dollars if an adjudication of guilt
34or a deferred judgment has been entered for a violation of
35section 708.2A, 708.11, or 710A.2, or chapter 709, or if a
-5-1defendant is held in contempt of court for violating a domestic
2abuse protective order issued pursuant to chapter 236.
   32.  In the event of multiple offenses, the surcharge shall be
4imposed for each applicable offense.
   53.  The surcharge shall be remitted by the clerk of court as
6provided in section 602.8108, subsection 6.
7   Sec. 11.  RESCISSION OF ADMINISTRATIVE RULES.  Contingent
8on the passage of the section of this Act amending section
9602.8107, subsection 3, paragraph “a”, the following
10administrative rule is rescinded:
   11Iowa administrative code rule 701—155.1(602).
12   Sec. 12.  EFFECTIVE DATE.  The following, being deemed of
13immediate importance, take effect upon enactment:
   141.  The section of this Act amending section 602.8105,
15section 2, paragraph “h”.
   162.  The section of this Act amending section 602.8107,
17subsection 3.
18   Sec. 13.  RETROACTIVE APPLICABILITY.  The following applies
19retroactively to January 1, 2021, for collected delinquent
20court debt:
   21The section of this Act amending section 602.8107,
22subsection 3.
23   Sec. 14.  RETROACTIVE APPLICABILITY.  The following applies
24retroactively to June 25, 2020:
   25The section of this Act amending section 602.8105,
26subsection 2, paragraph “h”.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
   30This bill relates to certain financial obligations,
31including under the consumer credit code, and including under
32the criminal and juvenile justice system by modifying criminal
33and civil surcharges, fines, fees, costs, and court debt.
   34The bill provides that a “consumer credit transaction” does
35not include goods, services, or any other benefits provided by
-6-1or on behalf of the state or a state agency for purposes of the
2consumer credit code under Code chapter 537.
   3The bill provides that the clerk of the district court
4shall collect, for applicable convictions that occur under
5Code section 692A.110 (registration fees and civil penalty for
6sex offenders) on or after June 25, 2020, a civil penalty of
7$260. The bill makes a conforming Code change to Code section
8692A.110(2).
   9The bill provides that the clerk of the district court shall
10collect a dishonored check fee of $30 submitted for the payment
11of any court debt.
   12The bill amends the definition of “court debt” to mean all
13restitution as defined in Code section 910.1, fees, forfeited
14bail, and other debt paid to or collected by the clerk of
15the district court. “Restitution” means pecuniary damages,
16category “A” restitution, and category “B” restitution.
   17The bill provides that the department of revenue shall
18receive 15 percent of all court debt payments collected on
19cases assigned to the department of revenue for collection
20to reflect the cost of processing, with the remainder of the
21court debt to be collected by the clerk of the district court
22for distribution in accordance with applicable law. The
23department of revenue shall not receive payment from any court
24debt collected that is payable to a crime victim as pecuniary
25damages until after the clerk of the district court has
26received the entirety of the court debt payable to the crime
27victim as pecuniary damages. Payments made by a person between
28January 1, 2021, and the effective date of the bill shall be
29calculated as if the payment had been made pursuant to Code
30section 602.8107(3)(a)(2), Code 2021, and the department’s fee
31shall be applied to such a payment. The department of revenue
32fee added to the court debt shall be deducted from the amount
33of court debt owed to the clerk of the district court. If a
34payment made by a person owing court debt between January 1,
352021, and the effective date of the bill reduces the total
-7-1amount of court debt owed to zero, the department of revenue
2shall issue a refund to the person in the amount attributable
3to the processing fee added to the court debt. Code section
4602.8107(3)(b)(2) is repealed on January 1, 2023.
   5Current law allows the county attorney or the county
6attorney’s designee to collect a percentage of court debt
7collected after the court debt is deemed delinquent, but not
8for amounts collected for restitution involving pecuniary
9damages, the victim compensation fund, the crime services
10surcharge, the sex offender civil penalty, the agricultural
11theft surcharge, or amounts collected as a result of written
12off or setoff debt. The bill amends debts for which the county
13attorney is not entitled to include amounts collected for the
14human trafficking victim surcharge, domestic abuse assault,
15domestic abuse protective order contempt, sexual abuse,
16stalking, and a human trafficking surcharge.
   17The bill provides that court debt that has been assigned
18to the department of revenue for collection may be charged
19off from active collection by the director of the department
20of revenue if the person owing the court debt is deceased
21and there are no assets in the person’s estate or there are
22no assets available for the payment of court debt under Code
23section 633.425 or the person owing the court debt cannot be
24found after diligent inquiry and the director of the department
25of revenue determines the department will not be able to locate
26the person owing the court debt.
   27Court debt for any of the following shall not be charged
28off until 65 years after the date of imposition: victim
29restitution, the victim compensation fund, a criminal
30penalty surcharge, a sex offender civil penalty, a drug abuse
31resistance education surcharge, a law enforcement initiative
32surcharge, a county enforcement surcharge, or fees charged
33pursuant to Code section 356.7. Charged off debts shall
34remain due and owing, but the judicial branch shall close the
35corresponding case file for the purposes of uncollectable debt
-8-1pursuant to the bill.
   2The county attorney or the county attorney’s designee may
3collect court debt after the court debt is deemed delinquent;
4however, the provision does not apply to amounts collected
5for restitution involving pecuniary damages, the victim
6compensation fund, the crime victim surcharge, the human
7trafficking victim surcharge, domestic abuse assault, domestic
8abuse protective order contempt, sexual abuse, the human
9trafficking surcharge, the agricultural theft surcharge, the
10sex offender civil penalty, or under Code section 8A.504
11(setoff procedures).
   12The bill provides that an appellate court shall not review or
13modify any issue related to the defendant’s ability to pay a
14permanent restitution order entered at the time of sentencing
15unless the defendant has exhausted the defendant’s remedies
16under Code section 910.7 and obtained a ruling from the
17district court prior to the issue being raised in the appellate
18court.
   19The bill changes the headnote for Code section 911.2B to
20domestic and sexual abuse crimes surcharge.
   21The bill provisionally rescinds the Iowa administrative
22code rule concerning a fee for the collection of court debt.
23The rule provides that a fee of 15 percent of the amount of
24each court debt is imposed on each court debt that has been
25assigned to the department of revenue for collection under Code
26section 602.8107(3). The bill provides that the department of
27revenue shall receive 15 percent of all court debt payments
28collected on cases assigned to the department of revenue for
29collection to reflect the cost of processing, which makes the
30rule unnecessary.
   31The bill provides that the sections of the bill amending Code
32sections 602.8105(2)(h) (relating to civil penalties for sex
33offenders) and 602.8107(3) (relating to the collection of court
34debt by the department of revenue) take effect upon enactment.
35The section of the bill amending Code section 602.8105(2)(h)
-9-1applies retroactively to June 25, 2020, and the section of the
2bill amending Code section 602.8107(3) applies retroactively
3to January 1, 2021.
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