Bill Text: IA HF380 | 2013-2014 | 85th General Assembly | Amended
Bill Title: A bill for an act concerning setoff procedures for collection of debts owed a state agency or political subdivision. (Formerly HSB 41)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2013-12-31 - END OF 2013 ACTIONS [HF380 Detail]
Download: Iowa-2013-HF380-Amended.html
House
File
380
-
Reprinted
HOUSE
FILE
380
BY
COMMITTEE
ON
STATE
GOVERNMENT
(SUCCESSOR
TO
HSB
41)
(As
Amended
and
Passed
by
the
House
March
25,
2013
)
A
BILL
FOR
An
Act
concerning
setoff
procedures
for
collection
of
debts
1
owed
a
state
agency
or
political
subdivision.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
HF
380
(3)
85
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H.F.
380
Section
1.
Section
8A.504,
subsection
1,
paragraph
a,
Code
1
2013,
is
amended
to
read
as
follows:
2
a.
“Collection
entity”
means
the
department
of
3
administrative
services
and
any
other
state
agency
that
4
maintains
a
separate
accounting
system
and
elects
to
establish
5
a
debt
collection
setoff
procedure
for
collection
of
debts
owed
6
to
the
state
or
its
agencies
an
agency
.
7
Sec.
2.
Section
8A.504,
subsection
1,
Code
2013,
is
amended
8
by
adding
the
following
new
paragraph:
9
NEW
PARAGRAPH
.
0b.
“Debtor”
means
a
person
who
is
liable
10
on
a
claim
to
an
agency.
11
Sec.
3.
Section
8A.504,
subsection
1,
paragraph
b,
Code
12
2013,
is
amended
to
read
as
follows:
13
b.
“Person”
does
not
include
a
state
an
agency.
14
Sec.
4.
Section
8A.504,
subsection
1,
paragraph
d,
Code
15
2013,
is
amended
to
read
as
follows:
16
d.
“State
agency”
“Agency”
means
a
board,
commission,
17
department,
including
the
department
of
administrative
18
services,
or
other
administrative
office
or
unit
of
the
19
state
of
Iowa
or
any
other
state
entity
reported
in
the
20
Iowa
comprehensive
annual
financial
report,
or
a
political
21
subdivision
of
the
state,
or
an
office
or
unit
of
a
political
22
subdivision.
“State
agency”
“Agency”
does
include
the
clerk
23
of
the
district
court
as
it
relates
to
the
collection
of
a
24
qualifying
debt.
“State
agency”
“Agency”
does
not
include
the
25
general
assembly
or
the
governor.
26
Sec.
5.
Section
8A.504,
subsections
2,
3,
and
5,
Code
2013,
27
are
amended
to
read
as
follows:
28
2.
Setoff
procedure.
The
collection
entity
shall
establish
29
and
maintain
a
procedure
to
set
off
against
any
claim
owed
to
a
30
person
debtor
by
a
state
an
agency
any
liability
of
that
person
31
debtor
owed
to
a
state
an
agency,
a
support
debt
being
enforced
32
by
the
child
support
recovery
unit
pursuant
to
chapter
252B
,
33
or
such
other
qualifying
debt.
The
procedure
shall
only
apply
34
when
at
the
discretion
of
the
director
it
is
feasible.
The
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procedure
shall
meet
the
following
conditions:
1
a.
Before
setoff,
a
person’s
debtor’s
liability
to
a
state
2
an
agency
and
the
person’s
debtor’s
claim
on
a
state
an
agency
3
shall
be
in
the
form
of
a
liquidated
sum
due,
owing,
and
4
payable.
5
b.
Before
setoff,
the
state
agency
shall
obtain
and
forward
6
to
the
collection
entity
the
full
name
and
social
security
7
number
of
the
person
debtor
liable
to
it
the
agency
or
to
whom
8
a
claim
is
owing
who
is
a
natural
person.
If
the
person
debtor
9
is
not
a
natural
person,
before
setoff,
the
state
agency
shall
10
forward
to
the
collection
entity
the
information
concerning
the
11
person
debtor
as
the
collection
entity
shall,
by
rule,
require.
12
The
collection
entity
shall
cooperate
with
other
state
agencies
13
in
the
exchange
of
information
relevant
to
the
identification
14
of
persons
debtors
liable
to
or
claimants
of
state
agencies.
15
However,
the
collection
entity
shall
provide
only
relevant
16
information
required
by
a
state
an
agency.
The
information
17
shall
be
held
in
confidence
and
used
for
the
purpose
of
setoff
18
only.
Section
422.72,
subsection
1
,
does
not
apply
to
this
19
paragraph.
20
c.
Before
setoff,
a
state
an
agency
shall,
at
least
21
annually,
submit
to
the
collection
entity
the
information
22
required
by
paragraph
“b”
along
with
the
amount
of
each
person’s
23
debtor’s
liability
to
and
the
amount
of
each
claim
on
the
state
24
agency.
The
collection
entity
may,
by
rule,
require
more
25
frequent
submissions.
26
d.
Before
setoff,
the
amount
of
a
person’s
debtor’s
claim
27
on
a
state
an
agency
and
the
amount
of
a
person’s
debtor’s
28
liability
to
a
state
an
agency
shall
constitute
a
minimum
29
amount
set
by
rule
of
the
collection
entity.
30
e.
Upon
submission
of
an
allegation
of
liability
by
a
31
state
an
agency,
the
collection
entity
shall
notify
the
state
32
agency
whether
the
person
debtor
allegedly
liable
is
entitled
33
to
payment
from
a
state
an
agency,
and,
if
so
entitled,
shall
34
notify
the
state
agency
of
the
amount
of
the
person’s
debtor’s
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entitlement
and
of
the
person’s
debtor’s
last
address
known
to
1
the
collection
entity.
Section
422.72,
subsection
1
,
does
not
2
apply
to
this
paragraph.
3
f.
(1)
Upon
notice
of
entitlement
to
a
payment,
the
state
4
agency
shall
send
written
notification
to
that
person
debtor
5
of
the
state
agency’s
assertion
of
its
rights
to
all
or
a
6
portion
of
the
payment
and
of
the
state
agency’s
entitlement
7
to
recover
the
liability
through
the
setoff
procedure,
the
8
basis
of
the
assertion,
the
opportunity
to
request
that
a
9
jointly
or
commonly
owned
right
to
payment
be
divided
among
10
owners,
and
the
person’s
debtor’s
opportunity
to
give
written
11
notice
of
intent
to
contest
the
amount
of
the
allegation.
The
12
state
agency
shall
send
a
copy
of
the
notice
to
the
collection
13
entity.
An
agency
shall
provide
the
debtor
with
an
opportunity
14
to
contest
the
liability.
A
state
An
agency
subject
to
chapter
15
17A
shall
give
notice,
conduct
hearings,
and
allow
appeals
in
16
conformity
with
chapter
17A
.
17
(2)
However,
upon
submission
of
an
allegation
of
the
18
liability
of
a
person
debtor
which
is
owing
and
payable
to
the
19
clerk
of
the
district
court
and
upon
the
determination
by
the
20
collection
entity
that
the
person
debtor
allegedly
liable
is
21
entitled
to
payment
from
a
state
an
agency,
the
collection
22
entity
shall
send
written
notification
to
the
person
debtor
23
which
states
the
assertion
by
the
clerk
of
the
district
court
24
of
rights
to
all
or
a
portion
of
the
payment,
the
clerk’s
25
entitlement
to
recover
the
liability
through
the
setoff
26
procedure,
the
basis
of
the
assertions,
the
person’s
debtor’s
27
opportunity
to
request
within
fifteen
days
of
the
mailing
of
28
the
notice
that
the
collection
entity
divide
a
jointly
or
29
commonly
owned
right
to
payment
between
owners,
the
opportunity
30
to
contest
the
liability
to
the
clerk
by
written
application
31
to
the
clerk
within
fifteen
days
of
the
mailing
of
the
notice,
32
and
the
person’s
debtor’s
opportunity
to
contest
the
collection
33
entity’s
setoff
procedure.
34
g.
Upon
the
timely
request
of
a
person
debtor
liable
to
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a
state
an
agency
or
of
the
spouse
of
that
person
debtor
and
1
upon
receipt
of
the
full
name
and
social
security
number
of
2
the
person’s
debtor’s
spouse,
a
state
an
agency
shall
notify
3
the
collection
entity
of
the
request
to
divide
a
jointly
or
4
commonly
owned
right
to
payment.
Any
jointly
or
commonly
owned
5
right
to
payment
is
rebuttably
presumed
to
be
owned
in
equal
6
portions
by
its
joint
or
common
owners.
7
h.
The
collection
entity
shall
,
after
the
state
agency
has
8
sent
notice
to
the
person
debtor
liable
or,
if
the
liability
9
is
owing
and
payable
to
the
clerk
of
the
district
court,
after
10
the
collection
entity
has
sent
notice
to
the
person
debtor
11
liable,
shall
set
off
the
amount
owed
to
the
agency
against
any
12
amount
which
a
state
an
agency
owes
that
person
debtor
.
The
13
collection
entity
shall
refund
any
balance
of
the
amount
to
14
the
person
debtor
.
The
collection
entity
shall
periodically
15
transfer
amounts
set
off
to
the
state
agencies
entitled
to
16
them.
If
a
person
debtor
liable
to
a
state
an
agency
gives
17
written
notice
of
intent
to
contest
an
allegation,
a
state
an
18
agency
shall
hold
a
refund
or
rebate
until
final
disposition
19
of
the
allegation.
Upon
completion
of
the
setoff,
a
state
an
20
agency
shall
notify
in
writing
the
person
debtor
who
was
liable
21
or,
if
the
liability
is
owing
and
payable
to
the
clerk
of
the
22
district
court,
shall
comply
with
the
procedures
as
provided
23
in
paragraph
“j”
.
24
i.
The
department
of
revenue’s
existing
right
to
credit
25
against
tax
due
or
to
become
due
under
section
422.73
is
not
to
26
be
impaired
by
a
right
granted
to
or
a
duty
imposed
upon
the
27
collection
entity
or
other
state
agency
by
this
section
.
This
28
section
is
not
intended
to
impose
upon
the
collection
entity
or
29
the
department
of
revenue
any
additional
requirement
of
notice,
30
hearing,
or
appeal
concerning
the
right
to
credit
against
tax
31
due
under
section
422.73
.
32
j.
If
the
alleged
liability
is
owing
and
payable
to
the
33
clerk
of
the
district
court
and
setoff
as
provided
in
this
34
section
is
sought,
all
of
the
following
shall
apply:
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(1)
The
judicial
branch
shall
prescribe
procedures
to
1
permit
a
person
debtor
to
contest
the
amount
of
the
person’s
2
debtor’s
liability
to
the
clerk
of
the
district
court.
3
(2)
The
collection
entity
shall,
except
for
the
procedures
4
described
in
subparagraph
(1),
prescribe
any
other
applicable
5
procedures
concerning
setoff
as
provided
in
this
subsection
.
6
(3)
Upon
completion
of
the
setoff,
the
collection
entity
7
shall
file,
at
least
monthly,
with
the
clerk
of
the
district
8
court
a
notice
of
satisfaction
of
each
obligation
to
the
9
full
extent
of
all
moneys
collected
in
satisfaction
of
the
10
obligation.
The
clerk
shall
record
the
notice
and
enter
a
11
satisfaction
for
the
amounts
collected
and
a
separate
written
12
notice
is
not
required.
13
k.
If
the
alleged
liability
is
owing
and
payable
to
a
14
community
college
and
setoff
pursuant
to
this
section
is
15
sought,
both
of
the
following
shall
apply:
16
(1)
In
addition
to
satisfying
other
applicable
setoff
17
procedures
established
under
this
subsection
,
the
community
18
college
shall
prescribe
procedures
to
permit
a
person
debtor
to
19
contest
the
amount
of
the
person’s
debtor’s
liability
to
the
20
community
college.
Such
procedures
shall
be
consistent
with
21
and
ensure
the
protection
of
the
person’s
debtor’s
right
of
due
22
process
under
Iowa
law.
23
(2)
The
collection
entity
shall,
except
for
the
procedures
24
prescribed
pursuant
to
subparagraph
(1),
prescribe
any
other
25
applicable
procedures
concerning
setoff
as
provided
in
this
26
subsection
.
27
l.
If
an
alleged
liability
is
owing
and
payable
that
would
28
allow
a
county
to
refuse
to
renew
a
vehicle
registration,
the
29
county
shall,
in
addition
to
satisfying
other
applicable
setoff
30
procedures
established
under
this
subsection,
provide
notice
of
31
the
alleged
liability
to
a
debtor
when
a
vehicle
registration
32
renewal
statement
is
sent
to
the
debtor
by
the
county.
33
3.
In
the
case
of
multiple
claims
to
payments
filed
under
34
this
section
,
priority
shall
be
given
to
claims
filed
by
the
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child
support
recovery
unit
or
the
foster
care
recovery
unit,
1
next
priority
shall
be
given
to
claims
filed
by
the
clerk
of
2
the
district
court,
next
priority
shall
be
given
to
claims
3
filed
by
the
college
student
aid
commission,
next
priority
4
shall
be
given
to
claims
filed
by
the
investigations
division
5
of
the
department
of
inspections
and
appeals,
and
last
priority
6
shall
be
given
to
claims
filed
by
other
state
agencies.
In
the
7
case
of
multiple
claims
in
which
the
priority
is
not
otherwise
8
provided
by
this
subsection
,
priority
shall
be
determined
in
9
accordance
with
rules
to
be
established
by
the
director.
10
5.
Under
substantive
rules
established
by
the
director,
the
11
department
shall
seek
reimbursement
from
other
state
agencies
12
to
recover
its
costs
for
setting
off
liabilities.
13
Sec.
6.
Section
99D.2,
subsection
3,
Code
2013,
is
amended
14
to
read
as
follows:
15
3.
“Claimant
agency”
means
a
state
an
agency
as
defined
in
16
section
8A.504,
subsection
1
,
or
the
state
court
administrator
17
as
defined
in
section
602.1101
.
18
Sec.
7.
Section
99F.1,
subsection
4,
Code
2013,
is
amended
19
to
read
as
follows:
20
4.
“Claimant
agency”
means
a
state
an
agency
as
defined
in
21
section
8A.504,
subsection
1
,
or
the
state
court
administrator
22
as
defined
in
section
602.1101
.
23
Sec.
8.
Section
234.8,
Code
2013,
is
amended
to
read
as
24
follows:
25
234.8
Fees
for
child
welfare
services.
26
The
department
of
human
services
may
charge
a
fee
for
27
child
welfare
services
to
a
person
liable
for
the
cost
of
the
28
services.
The
fee
shall
not
exceed
the
reasonable
cost
of
the
29
services.
The
fee
shall
be
based
upon
the
person’s
ability
30
to
pay
and
consideration
of
the
fee’s
impact
upon
the
liable
31
person’s
family
and
the
goals
identified
in
the
case
permanency
32
plan.
The
department
may
assess
the
liable
person
for
the
33
fee
and
the
means
of
recovery
shall
include
a
setoff
against
34
an
amount
owed
by
a
state
an
agency
to
the
person
assessed
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pursuant
to
section
8A.504
.
In
addition
the
department
may
1
establish
an
administrative
process
to
recover
the
assessment
2
through
automatic
income
withholding.
The
department
shall
3
adopt
rules
pursuant
to
chapter
17A
to
implement
the
provisions
4
of
this
section
.
This
section
does
not
apply
to
court-ordered
5
services
provided
to
juveniles
which
are
a
charge
upon
the
6
state
pursuant
to
section
232.141
and
services
for
which
the
7
department
has
established
a
support
obligation
pursuant
to
8
section
234.39
.
9
-7-
HF
380
(3)
85
ec/rj/md
7/
7