Bill Text: IA HSB656 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to the setoff procedures used by public agencies.
Spectrum: Committee Bill
Status: (N/A - Dead) 2020-02-18 - Committee report, recommending amendment and passage. H.J. 300. [HSB656 Detail]
Download: Iowa-2019-HSB656-Introduced.html
House
Study
Bill
656
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
STATE
GOVERNMENT
BILL
BY
CHAIRPERSON
KAUFMANN)
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.
“Collection
entity”
means
the
department
of
revenue
and
17
any
other
public
agency
that
maintains
a
separate
accounting
18
system
and
elects
to
establish
a
debt
collection
setoff
19
procedure
for
collection
of
debts
owed
to
the
public
agency.
20
b.
“Person”
does
not
include
a
public
agency.
21
c.
“Public
agency”
means
a
board,
commission,
department,
22
including
the
department
of
revenue,
or
other
administrative
23
office
or
unit
of
the
state
of
Iowa
or
any
other
state
entity
24
reported
in
the
Iowa
comprehensive
annual
financial
report,
25
or
a
political
subdivision
of
the
state,
or
an
office
or
unit
26
of
a
political
subdivision.
“Public
agency”
does
include
the
27
clerk
of
the
district
court
as
it
relates
to
the
collection
of
28
a
qualifying
debt.
“Public
agency”
does
not
include
the
general
29
assembly
or
the
governor.
30
d.
“Qualifying
debt”
includes
but
is
not
limited
to
the
31
following:
32
(1)
Any
debt,
which
is
assigned
to
the
department
of
33
human
services,
or
which
is
owed
to
the
department
of
human
34
services
for
unpaid
premiums
under
section
249A.3,
subsection
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2,
paragraph
“a”
,
subparagraph
(1),
or
which
the
child
support
1
recovery
unit
is
otherwise
attempting
to
collect,
or
which
the
2
foster
care
recovery
unit
of
the
department
of
human
services
3
is
attempting
to
collect
on
behalf
of
a
child
receiving
foster
4
care
provided
by
the
department
of
human
services.
5
(2)
An
amount
that
is
due
because
of
a
default
on
a
loan
6
under
chapter
261.
7
(3)
Any
debt
which
is
in
the
form
of
a
liquidated
sum
due,
8
owing,
and
payable
to
the
clerk
of
the
district
court.
9
2.
Setoff
procedure.
The
collection
entity
shall
establish
10
and
maintain
a
procedure
to
set
off
against
any
claim
owed
to
11
a
person
by
a
public
agency
any
liability
of
that
person
owed
12
to
a
public
agency,
a
support
debt
being
enforced
by
the
child
13
support
recovery
unit
pursuant
to
chapter
252B,
or
such
other
14
qualifying
debt.
The
procedure
shall
only
apply
when
at
the
15
discretion
of
the
director
it
is
feasible.
The
procedure
shall
16
meet
the
following
conditions:
17
a.
Before
setoff,
a
person’s
liability
to
a
public
agency
18
and
the
person’s
claim
on
a
public
agency
shall
be
in
the
form
19
of
a
liquidated
sum
due,
owing,
and
payable.
20
b.
Before
setoff,
the
public
agency
shall
obtain
and
forward
21
to
the
collection
entity
the
full
name
and
social
security
22
number
of
the
person
liable
to
the
public
agency
or
to
whom
23
a
claim
is
owing
who
is
a
natural
person.
If
the
person
is
24
not
a
natural
person,
before
setoff,
the
public
agency
shall
25
forward
to
the
collection
entity
the
information
concerning
the
26
person
as
the
collection
entity
shall,
by
rule,
require.
The
27
collection
entity
shall
cooperate
with
other
public
agencies
in
28
the
exchange
of
information
relevant
to
the
identification
of
29
persons
liable
to
or
claimants
of
public
agencies.
However,
30
the
collection
entity
shall
provide
only
relevant
information
31
required
by
a
public
agency.
The
information
shall
be
held
in
32
confidence
and
used
for
the
purpose
of
setoff
only.
Section
33
422.72,
subsection
1,
does
not
apply
to
this
paragraph.
34
c.
Before
setoff,
a
public
agency
shall,
at
least
annually,
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submit
to
the
collection
entity
the
information
required
1
by
paragraph
“b”
along
with
the
amount
of
each
person’s
2
liability
to
and
the
amount
of
each
claim
on
the
public
agency.
3
The
collection
entity
may,
by
rule,
require
more
frequent
4
submissions.
5
d.
Before
setoff,
the
amount
of
a
person’s
claim
on
a
public
6
agency
and
the
amount
of
a
person’s
liability
to
a
public
7
agency
shall
constitute
a
minimum
amount
set
by
rule
of
the
8
collection
entity.
9
e.
Upon
submission
of
an
allegation
of
liability
by
a
public
10
agency,
the
collection
entity
shall
notify
the
public
agency
11
whether
the
person
allegedly
liable
is
entitled
to
payment
from
12
a
public
agency,
and,
if
so
entitled,
shall
notify
the
public
13
agency
of
the
amount
of
the
person’s
entitlement
and
of
the
14
person’s
last
address
known
to
the
collection
entity.
Section
15
422.72,
subsection
1,
does
not
apply
to
this
paragraph.
16
f.
(1)
Upon
notice
of
entitlement
to
a
payment,
the
public
17
agency
shall
send
written
notification
to
that
person
of
the
18
public
agency’s
assertion
of
its
rights
to
all
or
a
portion
19
of
the
payment
and
of
the
public
agency’s
entitlement
to
20
recover
the
liability
through
the
setoff
procedure,
the
basis
21
of
the
assertion,
the
opportunity
to
request
that
a
jointly
22
or
commonly
owned
right
to
payment
be
divided
among
owners,
23
and
the
person’s
opportunity
to
give
written
notice
of
intent
24
to
contest
the
amount
of
the
allegation.
A
public
agency
25
shall
provide
the
person
with
an
opportunity
to
contest
the
26
liability.
A
public
agency
subject
to
chapter
17A
shall
give
27
notice,
conduct
hearings,
and
allow
appeals
in
conformity
with
28
chapter
17A.
29
(2)
However,
upon
submission
of
an
allegation
of
the
30
liability
of
a
person
which
is
owing
and
payable
to
the
31
clerk
of
the
district
court
and
upon
the
determination
by
the
32
collection
entity
that
the
person
allegedly
liable
is
entitled
33
to
payment
from
a
public
agency,
the
collection
entity
shall
34
send
written
notification
to
the
person
which
states
the
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assertion
by
the
clerk
of
the
district
court
of
rights
to
all
1
or
a
portion
of
the
payment,
the
clerk’s
entitlement
to
recover
2
the
liability
through
the
setoff
procedure,
the
basis
of
the
3
assertions,
the
person’s
opportunity
to
request
within
fifteen
4
days
of
the
mailing
of
the
notice
that
the
collection
entity
5
divide
a
jointly
or
commonly
owned
right
to
payment
between
6
owners,
the
opportunity
to
contest
the
liability
to
the
clerk
7
by
written
application
to
the
clerk
within
fifteen
days
of
the
8
mailing
of
the
notice,
and
the
person’s
opportunity
to
contest
9
the
collection
entity’s
setoff
procedure.
10
g.
Upon
the
timely
request
of
a
person
liable
to
a
public
11
agency
or
of
the
spouse
of
that
person
and
upon
receipt
of
the
12
full
name
and
social
security
number
of
the
person’s
spouse,
13
a
public
agency
shall
notify
the
collection
entity
of
the
14
request
to
divide
a
jointly
or
commonly
owned
right
to
payment.
15
Any
jointly
or
commonly
owned
right
to
payment
is
rebuttably
16
presumed
to
be
owned
in
equal
portions
by
its
joint
or
common
17
owners.
18
h.
The
collection
entity
shall,
after
the
public
agency
19
has
sent
notice
to
the
person
liable
or,
if
the
liability
is
20
owing
and
payable
to
the
clerk
of
the
district
court,
the
21
collection
entity
has
sent
notice
to
the
person
liable,
set
22
off
the
amount
owed
to
the
agency
against
any
amount
which
a
23
public
agency
owes
that
person.
The
collection
entity
shall
24
refund
any
balance
of
the
amount
to
the
person.
The
collection
25
entity
shall
periodically
transfer
amounts
set
off
to
the
26
public
agencies
entitled
to
them.
If
a
person
liable
to
a
27
public
agency
gives
written
notice
of
intent
to
contest
an
28
allegation,
a
public
agency
shall
hold
a
refund
or
rebate
until
29
final
disposition
of
the
allegation.
Upon
completion
of
the
30
setoff,
a
public
agency
shall
notify
in
writing
the
person
who
31
was
liable
or,
if
the
liability
is
owing
and
payable
to
the
32
clerk
of
the
district
court,
shall
comply
with
the
procedures
33
as
provided
in
paragraph
“j”
.
34
i.
The
department
of
revenue’s
existing
right
to
credit
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against
tax
due
or
to
become
due
under
section
422.73
is
not
1
to
be
impaired
by
a
right
granted
to
or
a
duty
imposed
upon
2
the
collection
entity
or
other
public
agency
by
this
section.
3
This
section
is
not
intended
to
impose
upon
the
collection
4
entity
any
additional
requirement
of
notice,
hearing,
or
appeal
5
concerning
the
right
to
credit
against
tax
due
under
section
6
422.73.
7
j.
If
the
alleged
liability
is
owing
and
payable
to
the
8
clerk
of
the
district
court
and
setoff
as
provided
in
this
9
section
is
sought,
all
of
the
following
shall
apply:
10
(1)
The
judicial
branch
shall
prescribe
procedures
to
11
permit
a
person
to
contest
the
amount
of
the
person’s
liability
12
to
the
clerk
of
the
district
court.
13
(2)
The
collection
entity
shall,
except
for
the
procedures
14
described
in
subparagraph
(1),
prescribe
any
other
applicable
15
procedures
concerning
setoff
as
provided
in
this
subsection.
16
(3)
Upon
completion
of
the
setoff,
the
collection
entity
17
shall
file,
at
least
monthly,
with
the
clerk
of
the
district
18
court
a
notice
of
satisfaction
of
each
obligation
to
the
19
full
extent
of
all
moneys
collected
in
satisfaction
of
the
20
obligation.
The
clerk
shall
record
the
notice
and
enter
a
21
satisfaction
for
the
amounts
collected
and
a
separate
written
22
notice
is
not
required.
23
k.
If
the
alleged
liability
is
owing
and
payable
to
a
24
community
college
and
setoff
pursuant
to
this
section
is
25
sought,
both
of
the
following
shall
apply:
26
(1)
In
addition
to
satisfying
other
applicable
setoff
27
procedures
established
under
this
subsection,
the
community
28
college
shall
prescribe
procedures
to
permit
a
person
to
29
contest
the
amount
of
the
person’s
liability
to
the
community
30
college.
Such
procedures
shall
be
consistent
with
and
ensure
31
the
protection
of
the
person’s
right
of
due
process
under
Iowa
32
law.
33
(2)
The
collection
entity
shall,
except
for
the
procedures
34
prescribed
pursuant
to
subparagraph
(1),
prescribe
any
other
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applicable
procedures
concerning
setoff
as
provided
in
this
1
subsection.
2
l.
If
the
alleged
liability
is
owing
and
payable
to
a
school
3
district
for
school
meals
and
the
school
district
has
made
4
reasonable
efforts
to
collect
the
debt,
setoff
pursuant
to
5
this
section
may
be
sought
by
the
school
district.
However,
6
this
paragraph
shall
not
be
interpreted
to
limit
any
other
7
options
for
school
meal
debt
collection
available
to
the
school
8
district
by
law.
9
3.
In
the
case
of
multiple
claims
to
payments
filed
under
10
this
section,
priority
shall
be
given
to
claims
filed
by
11
the
child
support
recovery
unit
or
the
foster
care
recovery
12
unit,
next
priority
shall
be
given
to
claims
filed
by
the
13
clerk
of
the
district
court,
next
priority
shall
be
given
14
to
claims
filed
by
the
college
student
aid
commission,
next
15
priority
shall
be
given
to
claims
filed
by
the
investigations
16
division
of
the
department
of
inspections
and
appeals,
and
17
last
priority
shall
be
given
to
claims
filed
by
other
public
18
agencies.
In
the
case
of
multiple
claims
in
which
the
priority
19
is
not
otherwise
provided
by
this
subsection,
priority
shall
be
20
determined
in
accordance
with
rules
to
be
established
by
the
21
director.
22
4.
The
director
shall
have
the
authority
to
enter
into
23
reciprocal
agreements
with
the
departments
of
revenue
of
other
24
states
that
have
enacted
legislation
that
is
substantially
25
equivalent
to
the
setoff
procedure
provided
in
this
section
26
for
the
recovery
of
an
amount
due
because
of
a
default
on
a
27
loan
under
chapter
261.
A
reciprocal
agreement
shall
also
be
28
approved
by
the
college
student
aid
commission.
The
agreement
29
shall
authorize
the
department
to
provide
by
rule
for
the
30
setoff
of
state
income
tax
refunds
or
rebates
of
defaulters
31
from
states
with
which
Iowa
has
a
reciprocal
agreement
and
to
32
provide
for
sending
lists
of
names
of
Iowa
defaulters
to
the
33
states
with
which
Iowa
has
a
reciprocal
agreement
for
setoff
of
34
that
state’s
income
tax
refunds.
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5.
Under
substantive
rules
established
by
the
director,
the
1
department
shall
seek
reimbursement
from
other
public
agencies
2
to
recover
its
costs
for
setting
off
liabilities.
3
Sec.
17.
Section
422.12G,
subsection
2,
Code
2020,
is
4
amended
to
read
as
follows:
5
2.
The
director
of
revenue
shall
draft
the
income
tax
form
6
to
allow
the
designation
of
contributions
to
the
veterans
trust
7
fund
and
to
the
volunteer
fire
fighter
preparedness
fund
as
8
one
checkoff
on
the
tax
return.
The
department
of
revenue,
9
on
or
before
January
31,
shall
transfer
one-half
of
the
total
10
amount
designated
on
the
tax
return
forms
due
in
the
preceding
11
calendar
year
to
the
veterans
trust
fund
and
the
remaining
12
one-half
to
the
volunteer
fire
fighter
preparedness
fund.
13
However,
before
a
checkoff
pursuant
to
this
section
shall
be
14
permitted,
all
liabilities
on
the
books
of
the
department
of
15
administrative
services
and
accounts
identified
as
owing
under
16
section
8A.504
421.65
shall
be
satisfied.
17
Sec.
18.
Section
422.12I,
subsection
2,
Code
2020,
is
18
amended
to
read
as
follows:
19
2.
The
director
of
revenue
shall
draft
the
income
tax
form
20
to
allow
the
designation
of
contributions
to
the
foundation
21
fund
on
the
tax
return.
The
department,
on
or
before
January
22
31,
shall
transfer
the
total
amount
designated
on
the
tax
23
form
due
in
the
preceding
year
to
the
foundation
fund.
24
However,
before
a
checkoff
pursuant
to
this
section
shall
be
25
permitted,
all
liabilities
on
the
books
of
the
department
of
26
administrative
services
and
accounts
identified
as
owing
under
27
section
8A.504
421.65
shall
be
satisfied.
28
Sec.
19.
Section
422.12K,
subsection
2,
Code
2020,
is
29
amended
to
read
as
follows:
30
2.
The
director
of
revenue
shall
draft
the
income
tax
form
31
to
allow
the
designation
of
contributions
to
the
child
abuse
32
prevention
program
fund
on
the
tax
return.
The
department
of
33
revenue,
on
or
before
January
31,
shall
transfer
the
total
34
amount
designated
on
the
tax
return
forms
due
in
the
preceding
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calendar
year
to
the
child
abuse
prevention
program
fund.
1
However,
before
a
checkoff
pursuant
to
this
section
shall
be
2
permitted,
all
liabilities
on
the
books
of
the
department
of
3
administrative
services
and
accounts
identified
as
owing
under
4
section
8A.504
421.65
shall
be
satisfied.
5
Sec.
20.
Section
422.20,
subsection
3,
paragraph
a,
Code
6
2020,
is
amended
to
read
as
follows:
7
a.
Unless
otherwise
expressly
permitted
by
section
8A.504
,
8
section
8G.4
,
section
11.41
,
section
96.11,
subsection
6
,
9
section
421.17,
subsections
22,
23,
and
26
,
section
421.17,
10
subsection
27
,
paragraph
“k”
,
section
421.17,
subsection
31
,
11
section
252B.9
,
section
321.40,
subsection
6
,
sections
321.120
,
12
421.19
,
421.28
,
421.65,
422.72
,
and
452A.63
,
this
section
,
or
13
another
provision
of
law,
a
tax
return,
return
information,
or
14
investigative
or
audit
information
shall
not
be
divulged
to
any
15
person
or
entity,
other
than
the
taxpayer,
the
department,
or
16
internal
revenue
service
for
use
in
a
matter
unrelated
to
tax
17
administration.
18
Sec.
21.
Section
422.72,
subsection
3,
paragraph
a,
Code
19
2020,
is
amended
to
read
as
follows:
20
a.
Unless
otherwise
expressly
permitted
by
section
8A.504
,
21
section
8G.4
,
section
11.41
,
section
96.11,
subsection
6
,
22
section
421.17,
subsections
22,
23,
and
26
,
section
421.17,
23
subsection
27
,
paragraph
“k”
,
section
421.17,
subsection
31
,
24
section
252B.9
,
section
321.40,
subsection
6
,
sections
321.120
,
25
421.19
,
421.28
,
421.65,
422.20
,
and
452A.63
,
this
section
,
or
26
another
provision
of
law,
a
tax
return,
return
information,
or
27
investigative
or
audit
information
shall
not
be
divulged
to
any
28
person
or
entity,
other
than
the
taxpayer,
the
department,
or
29
internal
revenue
service
for
use
in
a
matter
unrelated
to
tax
30
administration.
31
Sec.
22.
Section
456A.16,
subsection
7,
Code
2020,
is
32
amended
to
read
as
follows:
33
7.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
34
to
implement
this
section
.
However,
before
a
checkoff
pursuant
35
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to
this
section
shall
be
permitted,
all
liabilities
on
the
1
books
of
the
department
of
administrative
services
revenue
and
2
accounts
identified
as
owing
under
section
8A.504
421.65
shall
3
be
satisfied.
4
Sec.
23.
Section
602.8102,
subsection
58A,
Code
2020,
is
5
amended
to
read
as
follows:
6
58A.
Assist
the
department
of
administrative
services
7
revenue
in
setting
off
against
debtors’
income
tax
refunds
8
or
rebates
under
section
8A.504
421.65
,
debts
which
are
due,
9
owing,
and
payable
to
the
clerk
of
the
district
court
as
10
criminal
fines,
civil
penalties,
surcharges,
or
court
costs.
11
Sec.
24.
Section
602.8107,
subsection
4,
paragraph
a,
Code
12
2020,
is
amended
to
read
as
follows:
13
a.
This
subsection
does
not
apply
to
amounts
collected
for
14
victim
restitution,
the
victim
compensation
fund,
the
criminal
15
penalty
surcharge,
sex
offender
civil
penalty,
drug
abuse
16
resistance
education
surcharge,
the
law
enforcement
initiative
17
surcharge,
county
enforcement
surcharge,
amounts
collected
as
18
a
result
of
procedures
initiated
under
subsection
5
or
under
19
section
8A.504
421.65
,
or
fees
charged
pursuant
to
section
20
356.7
.
21
Sec.
25.
Section
642.2,
subsection
4,
Code
2020,
is
amended
22
to
read
as
follows:
23
4.
Notwithstanding
subsections
2,
3,
6,
and
7
,
any
24
moneys
owed
to
the
child
support
obligor
by
the
state,
with
25
the
exception
of
unclaimed
property
held
by
the
treasurer
26
of
state
pursuant
to
chapter
556
,
and
payments
owed
to
the
27
child
support
obligor
through
the
Iowa
public
employees’
28
retirement
system
are
subject
to
garnishment,
attachment,
29
execution,
or
assignment
by
the
child
support
recovery
unit
30
if
the
child
support
recovery
unit
is
providing
enforcement
31
services
pursuant
to
chapter
252B
.
Any
moneys
that
are
32
determined
payable
by
the
treasurer
pursuant
to
section
556.20,
33
subsection
2
,
to
the
child
support
obligor
shall
be
subject
to
34
setoff
pursuant
to
section
8A.504
421.65
,
notwithstanding
any
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administrative
rule
pertaining
to
the
child
support
recovery
1
unit
limiting
the
amount
of
the
offset.
2
Sec.
26.
REPEAL.
Section
8A.504,
Code
2020,
is
repealed.
3
Sec.
27.
TRANSITION
PROVISIONS.
Any
rule,
regulation,
4
form,
order,
or
directive
promulgated
by
the
department
of
5
administrative
services
as
required
to
administer
and
enforce
6
the
provisions
of
section
8A.504
prior
to
the
effective
date
of
7
this
Act
shall
continue
in
full
force
and
effect
until
amended,
8
repealed,
or
supplemented
by
the
department
of
revenue.
9
EXPLANATION
10
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
11
the
explanation’s
substance
by
the
members
of
the
general
assembly.
12
This
bill
relates
to
the
setoff
procedures
used
by
public
13
agencies.
14
The
bill
repeals
the
setoff
procedures
administered
by
the
15
department
of
administrative
services
and
contained
in
Code
16
section
8A.504
and
reestablishes
the
setoff
procedures
under
17
the
purview
of
the
department
of
revenue.
The
bill
updates
18
references
to
the
setoff
procedures
accordingly
throughout
the
19
Code.
20
Pursuant
to
new
Code
section
421.65,
the
department
of
21
revenue,
along
with
any
other
public
agency
that
maintains
a
22
separate
accounting
system
and
elects
to
establish
a
setoff
23
procedure,
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.
28
The
bill
provides
that
any
rule,
regulation,
form,
order,
29
or
directive
the
department
of
administrative
services
adopted
30
prior
to
the
effective
date
of
the
bill
to
administer
Code
31
section
8A.504
is
to
continue
in
full
force
or
effect
until
32
the
department
of
revenue
amends,
repeals,
or
supplements
such
33
rule,
regulation,
form,
order,
or
directive.
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