Bill Text: IA SF2328 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to the setoff procedures used by public agencies. (Formerly SSB 3140.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2020-06-05 - Withdrawn. S.J. 695. [SF2328 Detail]
Download: Iowa-2019-SF2328-Introduced.html
Senate
File
2328
-
Introduced
SENATE
FILE
2328
BY
COMMITTEE
ON
STATE
GOVERNMENT
(SUCCESSOR
TO
SSB
3140)
A
BILL
FOR
An
Act
relating
to
the
setoff
procedures
used
by
public
1
agencies.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
8A.323,
subsection
5,
Code
2020,
is
1
amended
to
read
as
follows:
2
5.
Any
fine
that
remains
unpaid
upon
becoming
delinquent
3
may
be
collected
by
the
department
of
revenue
pursuant
to
the
4
setoff
procedures
provided
for
in
section
8A.504
421.65
.
For
5
purposes
of
this
subsection
,
a
fine
becomes
delinquent
if
6
it
has
not
been
paid
within
thirty
days
of
the
date
of
the
7
issuance
of
the
parking
citation,
unless
a
written
request
for
8
a
hearing
is
filed
as
provided
pursuant
to
the
rules
of
the
9
department
of
revenue
.
If
an
appeal
is
filed
and
the
citation
10
is
upheld,
the
fine
becomes
delinquent
ten
days
after
the
11
issuance
of
the
final
decision
on
the
appeal
or
thirty-one
12
days
after
the
date
of
the
issuance
of
the
parking
citation,
13
whichever
is
later.
14
Sec.
2.
Section
8A.502,
subsection
2,
Code
2020,
is
amended
15
by
striking
the
subsection.
16
Sec.
3.
Section
96.11,
subsection
16,
Code
2020,
is
amended
17
to
read
as
follows:
18
16.
Reimbursement
of
setoff
costs.
The
department
shall
19
include
in
the
amount
set
off
in
accordance
with
section
8A.504
20
421.65
,
for
the
collection
of
an
overpayment
created
pursuant
21
to
section
96.3,
subsection
7
,
or
section
96.16,
subsection
22
4
,
an
additional
amount
for
the
reimbursement
of
setoff
costs
23
incurred
by
the
department
of
administrative
services
revenue
.
24
Sec.
4.
Section
99D.2,
subsection
3,
Code
2020,
is
amended
25
to
read
as
follows:
26
3.
“Claimant
agency”
means
a
public
agency
as
defined
27
in
section
8A.504
421.65
,
subsection
1
,
or
the
state
court
28
administrator
as
defined
in
section
602.1101
.
29
Sec.
5.
Section
99D.28,
subsection
2,
Code
2020,
is
amended
30
to
read
as
follows:
31
2.
The
licensee
is
authorized
and
directed
to
withhold
32
any
winnings
of
a
debtor
which
are
paid
out
directly
by
the
33
licensee
subject
to
the
lien
created
by
this
section
and
34
provide
notice
of
such
withholding
to
the
winner
when
the
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winner
appears
and
claims
winnings
in
person.
The
licensee
1
shall
pay
the
funds
over
to
the
collection
entity
which
2
administers
the
setoff
program
pursuant
to
section
8A.504
3
421.65
.
4
Sec.
6.
Section
99F.1,
subsection
5,
Code
2020,
is
amended
5
to
read
as
follows:
6
5.
“Claimant
agency”
means
a
public
agency
as
defined
7
in
section
8A.504
421.65
,
subsection
1
,
or
the
state
court
8
administrator
as
defined
in
section
602.1101
.
9
Sec.
7.
Section
99F.19,
subsection
2,
Code
2020,
is
amended
10
to
read
as
follows:
11
2.
The
licensee
is
authorized
and
directed
to
withhold
12
any
winnings
of
a
debtor
which
are
paid
out
directly
by
the
13
licensee
subject
to
the
lien
created
by
this
section
and
14
provide
notice
of
such
withholding
to
the
winner
when
the
15
winner
appears
and
claims
winnings
in
person.
The
licensee
16
shall
pay
the
funds
over
to
the
collection
entity
which
17
administers
the
setoff
program
pursuant
to
section
8A.504
18
421.65
.
19
Sec.
8.
Section
99G.38,
subsection
3,
Code
2020,
is
amended
20
to
read
as
follows:
21
3.
The
state
of
Iowa
offset
program,
as
provided
in
22
section
8A.504
421.65
,
shall
be
available
to
the
authority
to
23
facilitate
receipt
of
funds
owed
to
the
authority.
24
Sec.
9.
Section
217.34,
Code
2020,
is
amended
to
read
as
25
follows:
26
217.34
Debt
setoff.
27
The
investigations
division
of
the
department
of
inspections
28
and
appeals
and
the
department
of
human
services
shall
provide
29
assistance
to
set
off
against
a
person’s
or
provider’s
income
30
tax
refund
or
rebate
any
debt
which
has
accrued
through
written
31
contract,
nonpayment
of
premiums
pursuant
to
section
249A.3,
32
subsection
2
,
paragraph
“a”
,
subparagraph
(1),
subrogation,
33
departmental
recoupment
procedures,
or
court
judgment
and
which
34
is
in
the
form
of
a
liquidated
sum
due
and
owing
the
department
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of
human
services.
The
department
of
inspections
and
appeals,
1
with
approval
of
the
department
of
human
services,
shall
adopt
2
rules
under
chapter
17A
necessary
to
assist
the
department
of
3
administrative
services
revenue
in
the
implementation
of
the
4
setoff
under
section
8A.504
421.65
in
regard
to
money
owed
to
5
the
state
for
public
assistance
overpayments
or
nonpayment
6
of
premiums
as
specified
in
this
section
.
The
department
of
7
human
services
shall
adopt
rules
under
chapter
17A
necessary
to
8
assist
the
department
of
administrative
services
revenue
in
the
9
implementation
of
the
setoff
under
section
8A.504
421.65
,
in
10
regard
to
collections
by
the
child
support
recovery
unit
and
11
the
foster
care
recovery
unit.
12
Sec.
10.
Section
234.8,
Code
2020,
is
amended
to
read
as
13
follows:
14
234.8
Fees
for
child
welfare
services.
15
The
department
of
human
services
may
charge
a
fee
for
16
child
welfare
services
to
a
person
liable
for
the
cost
of
the
17
services.
The
fee
shall
not
exceed
the
reasonable
cost
of
the
18
services.
The
fee
shall
be
based
upon
the
person’s
ability
19
to
pay
and
consideration
of
the
fee’s
impact
upon
the
liable
20
person’s
family
and
the
goals
identified
in
the
case
permanency
21
plan.
The
department
may
assess
the
liable
person
for
the
fee
22
and
the
means
of
recovery
shall
include
a
setoff
against
an
23
amount
owed
by
a
state
agency
to
the
person
assessed
pursuant
24
to
section
8A.504
421.65
.
In
addition
the
department
may
25
establish
an
administrative
process
to
recover
the
assessment
26
through
automatic
income
withholding.
The
department
shall
27
adopt
rules
pursuant
to
chapter
17A
to
implement
the
provisions
28
of
this
section
.
This
section
does
not
apply
to
court-ordered
29
services
provided
to
juveniles
which
are
a
charge
upon
the
30
state
pursuant
to
section
232.141
and
services
for
which
the
31
department
has
established
a
support
obligation
pursuant
to
32
section
234.39
.
33
Sec.
11.
Section
252B.5,
subsection
4,
Code
2020,
is
amended
34
to
read
as
follows:
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4.
Assistance
to
set
off
against
a
debtor’s
income
tax
1
refund
or
rebate
any
support
debt,
which
is
assigned
to
2
the
department
of
human
services
or
which
the
child
support
3
recovery
unit
is
attempting
to
collect
on
behalf
of
any
4
individual
not
eligible
as
a
public
assistance
recipient,
which
5
has
accrued
through
written
contract,
subrogation,
or
court
6
judgment,
and
which
is
in
the
form
of
a
liquidated
sum
due
7
and
owing
for
the
care,
support,
or
maintenance
of
a
child.
8
Unless
the
periodic
payment
plan
provisions
for
a
retroactive
9
modification
pursuant
to
section
598.21C
apply,
the
entire
10
amount
of
a
judgment
for
accrued
support,
notwithstanding
11
compliance
with
a
periodic
payment
plan
or
regardless
of
the
12
date
of
entry
of
the
judgment,
is
due
and
owing
as
of
the
date
13
of
entry
of
the
judgment
and
is
delinquent
for
the
purposes
of
14
setoff,
including
for
setoff
against
a
debtor’s
federal
income
15
tax
refund
or
other
federal
nontax
payment.
The
department
16
of
human
services
shall
adopt
rules
pursuant
to
chapter
17A
17
necessary
to
assist
the
department
of
administrative
services
18
revenue
in
the
implementation
of
the
child
support
setoff
as
19
established
under
section
8A.504
421.65
.
20
Sec.
12.
Section
261.37,
subsection
7,
Code
2020,
is
amended
21
to
read
as
follows:
22
7.
To
establish
an
effective
system
for
the
collection
of
23
delinquent
loans,
including
the
adoption
of
an
agreement
with
24
the
department
of
administrative
services
revenue
to
set
off
25
against
a
defaulter’s
income
tax
refund
or
rebate
the
amount
26
that
is
due
because
of
a
default
on
a
loan
made
under
this
27
subchapter
.
The
commission
shall
adopt
rules
under
chapter
28
17A
necessary
to
assist
the
department
of
administrative
29
services
revenue
in
the
implementation
of
the
student
loan
30
setoff
program
as
established
under
section
8A.504
421.65
.
31
The
commission
shall
apply
administrative
wage
garnishment
32
procedures
authorized
under
the
federal
Higher
Education
Act
of
33
1965,
as
amended
and
codified
in
20
U.S.C.
§1071
et
seq.,
for
34
all
delinquent
loans,
including
loans
authorized
under
section
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261.38
,
when
a
defaulter
who
is
financially
capable
of
paying
1
fails
to
voluntarily
enter
into
a
reasonable
payment
agreement.
2
In
no
case
shall
the
commission
garnish
more
than
the
amount
3
authorized
by
federal
law
for
all
loans
being
collected
by
the
4
commission,
including
those
authorized
under
section
261.38
.
5
Sec.
13.
Section
321.11A,
subsection
1,
Code
2020,
is
6
amended
to
read
as
follows:
7
1.
Notwithstanding
section
321.11
,
the
department,
upon
8
request,
shall
provide
personal
information
that
identifies
9
a
person
by
the
social
security
number
of
the
person
to
the
10
following:
11
a.
The
department
of
revenue
for
the
purpose
purposes
of
12
collecting
debt
and
administering
the
setoff
program
pursuant
13
to
section
421.65
.
14
b.
The
judicial
branch
for
the
purpose
of
collecting
court
15
debt
pursuant
to
section
602.8107
.
16
c.
The
department
of
administrative
services
for
the
purpose
17
of
administering
the
setoff
program
pursuant
to
section
8A.504
.
18
Sec.
14.
Section
321.31,
subsection
1,
paragraph
c,
Code
19
2020,
is
amended
to
read
as
follows:
20
c.
The
director
shall
maintain
a
records
system
of
21
delinquent
accounts
owed
to
the
state
using
information
22
provided
through
the
computerized
data
bank
established
in
23
section
421.17
.
The
department
and
county
treasurers
shall
use
24
the
information
maintained
in
the
records
system
to
determine
25
if
applicants
for
renewal
of
registration
have
delinquent
26
accounts,
charges,
fees,
loans,
taxes,
or
other
indebtedness
27
owed
to
or
being
collected
by
the
state
as
provided
pursuant
28
to
section
8A.504
421.65
.
The
director
,
the
director
of
the
29
department
of
administrative
services,
and
the
director
of
30
revenue
shall
establish
procedures
for
updating
the
delinquent
31
accounts
records
to
add
and
remove
accounts,
as
applicable.
32
Sec.
15.
Section
321.40,
subsection
6,
paragraph
a,
Code
33
2020,
is
amended
to
read
as
follows:
34
a.
The
department
or
the
county
treasurer
shall
refuse
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to
renew
the
registration
of
a
vehicle
registered
to
the
1
applicant
if
the
department
or
the
county
treasurer
knows
that
2
the
applicant
has
a
delinquent
account,
charge,
fee,
loan,
3
taxes,
or
other
indebtedness
owed
to
or
being
collected
by
the
4
state,
from
information
provided
pursuant
to
sections
8A.504
5
and
421.17
and
421.65
.
An
applicant
may
contest
this
action
6
by
initiating
a
contested
case
proceeding
with
the
agency
7
that
referred
the
debt
for
collection
pursuant
to
section
8
8A.504
421.65
.
The
department
of
revenue
and
the
department
9
of
transportation
shall
notify
the
county
treasurers
through
10
the
distributed
teleprocessing
network
of
persons
who
owe
11
such
a
delinquent
account,
charge,
fee,
loan,
taxes,
or
other
12
indebtedness.
13
Sec.
16.
NEW
SECTION
.
421.65
Setoff
procedures.
14
1.
Definitions.
As
used
in
this
section,
unless
the
context
15
otherwise
requires:
16
a.
“Obligor”
means
a
person,
not
including
a
public
agency,
17
who
has
been
determined
to
owe
a
qualifying
debt.
18
b.
“Public
agency”
means
a
board,
commission,
department,
19
including
the
department
of
revenue,
or
other
administrative
20
office
or
unit
of
the
state
of
Iowa
or
any
other
state
entity
21
reported
in
the
Iowa
comprehensive
annual
financial
report,
22
or
a
political
subdivision
of
the
state,
or
an
office
or
unit
23
of
a
political
subdivision.
“Public
agency”
does
include
the
24
clerk
of
the
district
court
as
it
relates
to
the
collection
of
25
a
qualifying
debt.
“Public
agency”
does
not
include
the
general
26
assembly
or
the
office
of
the
governor.
27
c.
“Public
payment”
means
any
claim
owed
to
an
obligor
by
a
28
public
agency.
29
d.
“Qualifying
debt”
means
any
of
the
following:
30
(1)
Any
debt,
which
is
assigned
to
the
department
of
31
human
services,
or
which
is
owed
to
the
department
of
human
32
services
for
unpaid
premiums
under
section
249A.3,
subsection
33
2,
paragraph
“a”
,
subparagraph
(1),
or
which
the
child
support
34
recovery
unit
is
otherwise
attempting
to
collect,
or
which
the
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foster
care
recovery
unit
of
the
department
of
human
services
1
is
attempting
to
collect
on
behalf
of
a
child
receiving
foster
2
care
provided
by
the
department
of
human
services.
3
(2)
Any
debt
which
is
in
the
form
of
a
liquidated
sum
due,
4
owing,
and
payable
to
the
clerk
of
the
district
court.
5
(3)
Any
liquidated
sum
certain,
owing
and
payable
to
a
6
public
agency,
with
respect
to
which
the
public
agency
has
7
provided
the
obligor
an
opportunity
to
protest
or
challenge
the
8
sum
in
a
manner
compliant
with
applicable
law
and
due
process,
9
and
which
has
been
determined
as
owing
through
the
challenge
10
or
protest
or
for
which
the
time
period
provided
by
the
public
11
agency
to
challenge
or
protest
has
expired.
12
2.
Setoff
procedure.
The
department
shall
establish
and
13
maintain
a
procedure
to
set
off
against
each
public
payment
any
14
qualifying
debt
of
the
obligor
owed
to
a
public
agency.
The
15
procedure
shall
only
apply
when
the
department
determines,
in
16
its
discretion,
it
is
feasible
and
complies
with
applicable
17
law.
The
procedure
shall
meet
the
following
conditions:
18
a.
Each
participating
public
agency
shall
obtain
and
forward
19
to
the
department
the
full
name
and
social
security
number
20
of
each
obligor,
or
similar
identifying
information
for
an
21
obligor
who
is
not
a
natural
person,
and
any
other
information
22
concerning
the
person
the
department
shall
require.
The
23
department
shall
cooperate
with
public
agencies
in
the
exchange
24
of
information
relevant
to
identifying
public
payments
and
25
qualifying
debt
that
may
be
subject
to
setoff.
However,
the
26
department
shall
provide
only
relevant
information
required
by
27
a
public
agency.
The
information
shall
be
held
in
confidence
28
and
used
for
the
purpose
of
setoff
only.
Section
422.72,
29
subsection
1,
does
not
apply
to
this
paragraph.
30
b.
Each
participating
public
agency
shall,
at
least
31
annually,
certify
to
the
department
the
information
required
32
by
paragraph
“a”
,
the
amount
of
each
obligor’s
liability
to
33
and
the
amount
of
each
claim
on
the
public
agency,
and
that
34
all
liabilities
submitted
constitute
qualifying
debt.
The
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department
may,
by
rule,
require
more
frequent
certifications
1
or
certifications
of
additional
information
about
the
2
qualifying
debt
or
the
obligor.
The
department
may,
in
its
3
discretion,
review
the
accuracy
of
any
certification
made
4
pursuant
to
this
paragraph.
5
c.
The
department
may,
by
rule,
establish
a
minimum
amount
6
of
liabilities
and
claims
that
may
be
setoff.
7
d.
Upon
submission
of
an
allegation
of
liability
by
a
8
public
agency,
the
department
shall
notify
the
public
agency
9
whether
the
obligor
is
entitled
to
a
public
payment,
and,
if
so
10
entitled,
shall
notify
the
public
agency
of
the
amount
of
the
11
obligor’s
entitlement
and
last
address
known
to
the
department.
12
Section
422.72,
subsection
1,
does
not
apply
to
this
paragraph.
13
e.
Upon
notice
of
entitlement
to
a
public
payment,
the
14
department
shall
send
written
notification
to
the
obligor
and
15
any
known
co-payee
of
the
public
payment.
The
notification
16
shall
contain
the
public
agency’s
assertion
of
its
rights
to
17
all
or
a
portion
of
the
payment
and
of
the
public
agency’s
18
entitlement
to
recover
the
liability
through
the
setoff
19
procedure,
the
basis
of
the
assertion,
the
opportunity
to
20
request
that
a
jointly
or
commonly
owned
right
to
payment
be
21
divided
among
owners,
and
the
obligor’s
opportunity
to
give
22
written
notice
of
intent
to
contest
the
setoff
procedure
or
23
that
the
debt
is
a
qualifying
debt.
24
f.
Upon
the
request
of
an
obligor
or
a
co-payee
of
the
25
public
payment
received
by
the
department
within
the
time
26
period
provided
in
the
written
notification,
and
upon
receipt
27
of
the
full
name
and
social
security
number
of
the
co-payee,
28
or
similar
identifying
information
of
a
co-payee
who
is
not
a
29
natural
person,
the
department
shall
notify
the
public
agency
30
that
the
public
agency
shall
divide
a
jointly
or
commonly
owned
31
right
to
payment
in
the
manner
determined
by
the
department.
32
Any
jointly
or
commonly
owned
right
to
payment
is
rebuttably
33
presumed
to
be
owned
in
equal
portions
by
its
joint
or
common
34
owners.
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g.
(1)
Challenges
under
this
section
may
be
initiated
only
1
by
an
obligor.
The
department’s
review
of
a
challenge
to
a
2
setoff
is
not
subject
to
chapter
17A.
3
(2)
The
obligor
challenging
the
setoff
shall
submit
a
4
written
challenge
in
the
manner
provided
in
the
notice,
within
5
fifteen
days
of
the
date
of
the
written
notification
of
intent
6
to
setoff.
7
(3)
The
department,
upon
receipt
of
a
written
challenge,
8
shall
provide
written
notice
of
the
challenge
to
the
public
9
agency.
The
department
shall
review
the
information
submitted
10
by
the
public
agency
prior
to
the
setoff
and
shall
obtain
11
additional
information
from
the
public
agency
if
necessary
to
12
establish
that
the
liability
is
a
qualified
debt,
or
to
verify
13
the
identity
of
the
obligor
or
the
amount
owed.
The
department
14
shall
set
a
time,
to
occur
within
ten
days
of
receipt
of
the
15
challenge,
to
review
the
relevant
facts
of
the
challenge
with
16
the
obligor.
An
alternative
time
may
be
set
at
the
request
17
of
the
obligor.
If
the
obligor
does
not
participate
in
the
18
review
at
the
scheduled
time
and
an
alternative
time
is
not
19
requested
and
approved,
the
review
shall
take
place
without
the
20
obligor
being
present.
Information
in
favor
of
the
obligor
21
and
the
public
agency
shall
be
considered
in
the
review.
Only
22
a
determination
that
the
debt
is
not
a
qualified
debt
or
a
23
mistake
of
fact,
including
but
not
limited
to
a
mistake
in
the
24
identity
of
the
obligor
or
a
mistake
in
the
amount
owed
shall
25
be
considered
as
a
reason
to
deny
or
modify
the
setoff.
26
(4)
If
the
department
determines
that
a
mistake
of
fact
has
27
occurred
or
that
the
liability
submitted
does
not
constitute
28
a
qualified
debt,
the
public
agency
shall
promptly
return
the
29
setoff
funds
to
the
original
payee
or
payees
unless
there
is
30
another
qualifying
debt
available
for
setoff.
31
(5)
If
the
department
finds
no
mistake
of
fact
and
that
the
32
liability
is
a
qualified
debt,
the
department
shall
provide
a
33
notice
of
that
effect
to
the
obligor
and
the
public
agency,
and
34
the
public
agency
shall
retain
the
funds
subject
to
setoff.
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(6)
The
obligor
shall
have
the
right
to
file
an
action
for
1
wrongful
setoff
in
district
court
within
thirty
days
of
the
2
date
of
the
notice
to
the
obligor
provided
in
subparagraph
(5),
3
either
in
the
county
where
the
obligor
is
located
or
the
county
4
where
the
main
office
of
the
public
agency
is
located.
The
5
defendant
in
such
action
shall
be
the
public
agency,
with
an
6
additional
copy
of
such
petition
to
be
served
upon
the
office
7
of
the
attorney
general.
Actions
under
this
section
are
in
8
equity
and
not
actions
at
law
and
are
an
obligor’s
exclusive
9
remedy
to
challenge
any
action
arising
from
or
related
to
this
10
section.
11
(7)
Recovery
under
this
paragraph
is
limited
to
restitution
12
from
the
public
agency
of
the
amount
that
has
been
wrongfully
13
setoff
or
obtained
by
the
public
agency.
14
(8)
A
challenge
under
this
subsection
shall
not
be
used
to
15
extend,
toll,
or
reopen
the
statute
of
limitations
to
challenge
16
or
contest
a
qualified
debt.
Only
mistakes
of
fact,
failure
17
of
the
public
agency
to
comply
with
the
provisions
of
this
18
section,
or
a
liability
that
is
not
a
qualified
debt,
shall
19
constitute
grounds
for
challenge
under
this
subsection.
20
h.
The
department
shall,
after
the
department
has
sent
21
the
notice
to
the
obligor
provided
in
paragraph
“e”
,
set
off
22
the
amount
last
certified
by
the
public
agency
as
owed
to
the
23
public
agency
against
the
public
payment.
The
department
24
shall
refund
any
balance
of
the
payment
to
the
obligor.
The
25
department
shall
periodically
transfer
amounts
set
off
to
26
the
public
agencies
entitled
to
such
amounts,
reduced
by
any
27
fees
charged
for
setoff.
If
an
obligor
gives
written
notice
28
of
intent
to
contest
a
setoff,
the
public
agency
shall
hold
29
a
refund
or
rebate
until
final
disposition
of
the
challenge.
30
Upon
completion
of
the
setoff,
the
department
shall
provide
31
written
notice
of
the
completed
setoff
to
the
obligor
and
any
32
co-payees
of
the
payment
subject
to
offset.
33
i.
The
department’s
right
to
credit
against
tax
due
or
34
to
become
due
under
section
422.73
is
not
to
be
impaired
by
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a
right
granted
to
or
a
duty
imposed
upon
the
department
by
1
this
section.
This
section
is
not
intended
to
impose
upon
the
2
department
any
additional
requirement
of
notice,
hearing,
or
3
appeal
concerning
the
right
to
credit
against
tax
due
under
4
section
422.73.
5
j.
If
the
alleged
liability
is
owing
and
payable
to
the
6
clerk
of
the
district
court
and
setoff
as
provided
in
this
7
section
is
sought,
all
of
the
following
shall
apply:
8
(1)
The
judicial
branch
shall
prescribe
procedures
to
9
permit
an
obligor
to
contest
the
amount
of
the
obligor’s
10
liability
to
the
clerk
of
the
district
court.
11
(2)
The
department
shall,
except
for
the
procedures
12
described
in
subparagraph
(1),
provide
for
any
other
applicable
13
procedures
concerning
setoff
as
provided
in
this
subsection.
14
(3)
Upon
completion
of
the
setoff,
the
department
shall
15
file,
at
least
monthly,
with
the
clerk
of
the
district
court
a
16
notice
of
satisfaction
of
each
obligation
to
the
full
extent
of
17
all
moneys
collected
in
satisfaction
of
the
obligation.
The
18
clerk
shall
record
the
notice
and
enter
a
satisfaction
for
the
19
amounts
collected.
A
separate
written
notice
is
not
required.
20
3.
Priority.
In
the
case
of
multiple
claims
to
payments
21
filed
under
this
section,
priority
shall
be
given
to
claims
22
filed
by
the
child
support
recovery
unit
or
the
foster
care
23
recovery
unit,
next
priority
shall
be
given
to
claims
filed
24
by
the
clerk
of
the
district
court,
next
priority
shall
be
25
given
to
claims
filed
by
the
investigations
division
of
the
26
department
of
inspections
and
appeals,
next
priority
shall
be
27
given
to
claims
that
will
be
deposited
into
the
state
general
28
fund,
and
last
priority
shall
be
given
to
claims
filed
by
other
29
public
agencies.
In
the
case
of
multiple
claims
in
which
the
30
priority
is
not
otherwise
provided
by
this
subsection,
priority
31
shall
be
determined
in
accordance
with
rules
to
be
established
32
by
the
department.
33
4.
Authority
of
the
director
——
other
states.
The
director
34
shall
have
the
authority
to
enter
into
reciprocal
agreements
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with
departments
or
agencies
of
other
states
that
have
1
established
a
setoff
procedure.
2
5.
Fees.
The
department
shall
establish
fees
for
use
of
the
3
setoff
system
to
be
paid
by
participating
public
agencies
to
4
the
department.
5
Sec.
17.
Section
422.12G,
subsection
2,
Code
2020,
is
6
amended
to
read
as
follows:
7
2.
The
director
of
revenue
shall
draft
the
income
tax
form
8
to
allow
the
designation
of
contributions
to
the
veterans
trust
9
fund
and
to
the
volunteer
fire
fighter
preparedness
fund
as
10
one
checkoff
on
the
tax
return.
The
department
of
revenue,
11
on
or
before
January
31,
shall
transfer
one-half
of
the
total
12
amount
designated
on
the
tax
return
forms
due
in
the
preceding
13
calendar
year
to
the
veterans
trust
fund
and
the
remaining
14
one-half
to
the
volunteer
fire
fighter
preparedness
fund.
15
However,
before
a
checkoff
pursuant
to
this
section
shall
be
16
permitted,
all
liabilities
on
the
books
of
the
department
of
17
administrative
services
and
accounts
identified
as
owing
under
18
section
8A.504
421.65
shall
be
satisfied.
19
Sec.
18.
Section
422.12I,
subsection
2,
Code
2020,
is
20
amended
to
read
as
follows:
21
2.
The
director
of
revenue
shall
draft
the
income
tax
form
22
to
allow
the
designation
of
contributions
to
the
foundation
23
fund
on
the
tax
return.
The
department,
on
or
before
January
24
31,
shall
transfer
the
total
amount
designated
on
the
tax
25
form
due
in
the
preceding
year
to
the
foundation
fund.
26
However,
before
a
checkoff
pursuant
to
this
section
shall
be
27
permitted,
all
liabilities
on
the
books
of
the
department
of
28
administrative
services
and
accounts
identified
as
owing
under
29
section
8A.504
421.65
shall
be
satisfied.
30
Sec.
19.
Section
422.12K,
subsection
2,
Code
2020,
is
31
amended
to
read
as
follows:
32
2.
The
director
of
revenue
shall
draft
the
income
tax
form
33
to
allow
the
designation
of
contributions
to
the
child
abuse
34
prevention
program
fund
on
the
tax
return.
The
department
of
35
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revenue,
on
or
before
January
31,
shall
transfer
the
total
1
amount
designated
on
the
tax
return
forms
due
in
the
preceding
2
calendar
year
to
the
child
abuse
prevention
program
fund.
3
However,
before
a
checkoff
pursuant
to
this
section
shall
be
4
permitted,
all
liabilities
on
the
books
of
the
department
of
5
administrative
services
and
accounts
identified
as
owing
under
6
section
8A.504
421.65
shall
be
satisfied.
7
Sec.
20.
Section
422.20,
subsection
3,
paragraph
a,
Code
8
2020,
is
amended
to
read
as
follows:
9
a.
Unless
otherwise
expressly
permitted
by
section
8A.504
,
10
section
8G.4
,
section
11.41
,
section
96.11,
subsection
6
,
11
section
421.17,
subsections
22,
23,
and
26
,
section
421.17,
12
subsection
27
,
paragraph
“k”
,
section
421.17,
subsection
31
,
13
section
252B.9
,
section
321.40,
subsection
6
,
sections
321.120
,
14
421.19
,
421.28
,
421.65,
422.72
,
and
452A.63
,
this
section
,
or
15
another
provision
of
law,
a
tax
return,
return
information,
or
16
investigative
or
audit
information
shall
not
be
divulged
to
any
17
person
or
entity,
other
than
the
taxpayer,
the
department,
or
18
internal
revenue
service
for
use
in
a
matter
unrelated
to
tax
19
administration.
20
Sec.
21.
Section
422.72,
subsection
3,
paragraph
a,
Code
21
2020,
is
amended
to
read
as
follows:
22
a.
Unless
otherwise
expressly
permitted
by
section
8A.504
,
23
section
8G.4
,
section
11.41
,
section
96.11,
subsection
6
,
24
section
421.17,
subsections
22,
23,
and
26
,
section
421.17,
25
subsection
27
,
paragraph
“k”
,
section
421.17,
subsection
31
,
26
section
252B.9
,
section
321.40,
subsection
6
,
sections
321.120
,
27
421.19
,
421.28
,
421.65,
422.20
,
and
452A.63
,
this
section
,
or
28
another
provision
of
law,
a
tax
return,
return
information,
or
29
investigative
or
audit
information
shall
not
be
divulged
to
any
30
person
or
entity,
other
than
the
taxpayer,
the
department,
or
31
internal
revenue
service
for
use
in
a
matter
unrelated
to
tax
32
administration.
33
Sec.
22.
Section
456A.16,
subsection
7,
Code
2020,
is
34
amended
to
read
as
follows:
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7.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
1
to
implement
this
section
.
However,
before
a
checkoff
pursuant
2
to
this
section
shall
be
permitted,
all
liabilities
on
the
3
books
of
the
department
of
administrative
services
revenue
and
4
accounts
identified
as
owing
under
section
8A.504
421.65
shall
5
be
satisfied.
6
Sec.
23.
Section
602.8102,
subsection
58A,
Code
2020,
is
7
amended
to
read
as
follows:
8
58A.
Assist
the
department
of
administrative
services
9
revenue
in
setting
off
against
debtors’
income
tax
refunds
10
or
rebates
under
section
8A.504
421.65
,
debts
which
are
due,
11
owing,
and
payable
to
the
clerk
of
the
district
court
as
12
criminal
fines,
civil
penalties,
surcharges,
or
court
costs.
13
Sec.
24.
Section
602.8107,
subsection
4,
paragraph
a,
Code
14
2020,
is
amended
to
read
as
follows:
15
a.
This
subsection
does
not
apply
to
amounts
collected
for
16
victim
restitution,
the
victim
compensation
fund,
the
criminal
17
penalty
surcharge,
sex
offender
civil
penalty,
drug
abuse
18
resistance
education
surcharge,
the
law
enforcement
initiative
19
surcharge,
county
enforcement
surcharge,
amounts
collected
as
20
a
result
of
procedures
initiated
under
subsection
5
or
under
21
section
8A.504
421.65
,
or
fees
charged
pursuant
to
section
22
356.7
.
23
Sec.
25.
Section
642.2,
subsection
4,
Code
2020,
is
amended
24
to
read
as
follows:
25
4.
Notwithstanding
subsections
2,
3,
6,
and
7
,
any
26
moneys
owed
to
the
child
support
obligor
by
the
state,
with
27
the
exception
of
unclaimed
property
held
by
the
treasurer
28
of
state
pursuant
to
chapter
556
,
and
payments
owed
to
the
29
child
support
obligor
through
the
Iowa
public
employees’
30
retirement
system
are
subject
to
garnishment,
attachment,
31
execution,
or
assignment
by
the
child
support
recovery
unit
32
if
the
child
support
recovery
unit
is
providing
enforcement
33
services
pursuant
to
chapter
252B
.
Any
moneys
that
are
34
determined
payable
by
the
treasurer
pursuant
to
section
556.20,
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subsection
2
,
to
the
child
support
obligor
shall
be
subject
to
1
setoff
pursuant
to
section
8A.504
421.65
,
notwithstanding
any
2
administrative
rule
pertaining
to
the
child
support
recovery
3
unit
limiting
the
amount
of
the
offset.
4
Sec.
26.
REPEAL.
Section
8A.504,
Code
2020,
is
repealed.
5
Sec.
27.
TRANSITION
PROVISIONS.
Any
rule,
regulation,
6
form,
order,
or
directive
promulgated
by
the
department
of
7
administrative
services
as
required
to
administer
and
enforce
8
the
provisions
of
section
8A.504
prior
to
the
effective
date
of
9
this
Act
shall
continue
in
full
force
and
effect
until
amended,
10
repealed,
or
supplemented
by
the
department
of
revenue.
11
EXPLANATION
12
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
13
the
explanation’s
substance
by
the
members
of
the
general
assembly.
14
This
bill
relates
to
the
setoff
procedures
used
by
public
15
agencies.
16
The
bill
repeals
the
setoff
procedures
administered
by
the
17
department
of
administrative
services
and
contained
in
Code
18
section
8A.504
and
reestablishes
the
setoff
procedures
under
19
the
purview
of
the
department
of
revenue.
The
bill
updates
20
references
to
the
setoff
procedures
accordingly
throughout
the
21
Code.
22
Pursuant
to
new
Code
section
421.65,
the
department
of
23
revenue
is
required
to
establish
and
maintain
a
procedure
to
24
set
off
against
any
claim
owed
to
a
person
by
a
public
agency
25
any
liability
of
that
person
owed
to
a
public
agency,
a
support
26
debt
being
enforced
by
the
child
support
recovery
unit,
or
any
27
other
qualifying
debt.
The
bill
also
provides
a
process
for
an
28
obligor
to
challenge
a
setoff.
29
The
bill
provides
that
any
rule,
regulation,
form,
order,
30
or
directive
the
department
of
administrative
services
adopted
31
prior
to
the
effective
date
of
the
bill
to
administer
Code
32
section
8A.504
is
to
continue
in
full
force
or
effect
until
33
the
department
of
revenue
amends,
repeals,
or
supplements
such
34
rule,
regulation,
form,
order,
or
directive.
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