§ 252B.23 — Surcharge

Iowa § 252B.23

• Jurisdiction: Iowa
• Title VI: HUMAN SERVICES
• Ch. 252B: CHILD SUPPORT SERVICES

Text

1. A surcharge shall be due and payable by the obligor on a support arrearage identified
as difficult to collect and referred by child support services on or after January 1, 1998, to a
collection entity under contract with child support services or other state entity. The amount
of the surcharge shall be a percent of the amount of the support arrearage referred to the
collection entity and shall be specified in the contract with the collection entity. For the
purpose of this chapter, a “collection entity” includes but is not limited to a state agency,
§252B.23, CHILD SUPPORT SERVICES 26
including the central collection unit of the department of revenue, or a private collection
agency. Use of a collection entity is in addition to any other legal means by which support
payments may be collected. Child support services shall continue to use other enforcement
actions, as appropriate.
2. a. Notice that a surcharge may be assessed on a support arrearage referred to a
collection entity pursuant to this section shall be provided to an obligor in accordance with
one of the following as applicable:
(1) In the order establishing or modifying the support obligation. Child support services
or the district court shall include notice in any new or modified support order issued on or
after July 1, 1997.
(2) Throughnoticesentbychildsupportservicesbyregularmailtothelastknownaddress
of the support obligor.
b. The notice shall also advise that any appropriate information may be provided to a
collection entity for purposes of administering and enforcing the surcharge.
3. Arrearages submitted for referral and surcharge pursuant to this section shall meet all
of the following criteria:
a. The arrearages owed shall be based on a court or administrative order which
establishes the support obligation.
b. The arrearage is due for a case in which child support services is providing services
pursuant to this chapter and one for which the arrearage has been identified as difficult to
collect by child support services.
c. The obligor was provided notice pursuant to subsection 2 at least fifteen days prior to
sending the notice of referral pursuant to subsection 4.
4. Child support services shall send notice of referral to the obligor by regular mail to
the obligor’s last known address, with proof of service completed according to rule of civil
procedure1.442,atleastthirtydayspriortothedatethearrearageisreferredtothecollection
entity. The notice shall inform the obligor of all of the following:
a. The arrearage will be referred to a collection entity.
b. Upon referral, a surcharge is due and payable by the obligor.
c. The amount of the surcharge.
d. That the obligor may avoid referral by paying the amount of the arrearage to the
collection services center within twenty days of the date of notice of referral.
e. That the obligor may contest the referral by submitting a written request for review of
child support services. The request shall be received by child support services within twenty
days of the date of the notice of referral.
f. The right to contest the referral is limited to a mistake of fact, which includes a mistake
in the identity of the obligor, a mistake as to fulfillment of the requirements for referral under
this subsection, or a mistake in the amount of the arrearages.
g. Child support services shall issue a written decision following a requested review.
h. Following the issuance of a written decision by child support services denying that a
mistakeoffactexists,theobligormayrequestahearingtochallengethesurchargebysending
a written request for a hearing to child support services. The request shall be received by
child support services within ten days of child support services’ written decision. The only
grounds for a hearing shall be mistake of fact. Following receipt of the written request, child
support services shall certify the matter for hearing in the district court in the county in which
the underlying support order is filed.
i. The address of the collection services center for payment of the arrearages.
5. If the obligor pays the amount of arrearage within twenty days of the date of the notice
of referral, referral of the arrearage to a collection entity shall not be made.
6. If the obligor requests a review or court hearing pursuant to this section, referral of the
arrearages shall be stayed pending the decision of child support services or the court.
7. Actions of child support services under this section shall not be subject to contested
case proceedings or further review pursuant to chapter 17A and any resulting court hearing
shallbeanoriginalhearingbeforethedistrictcourt. However, thedepartmentshallestablish,
by rule pursuant to chapter 17A, an internal process to provide an additional review by the
director or the director’s designee.
27 CHILD SUPPORT SERVICES, §252B.24
8. If an obligor does not pay the amount of the arrearage, does not contest the referral,
or if following child support services’ review and any court hearing child support services
or the court does not find a mistake of fact, the arrearages shall be referred to a collection
entity. Following the review or hearing, if child support services or the court finds a mistake
in the amount of the arrearage, the arrearages shall be referred to the collection entity in the
appropriate arrearage amount. For arrearages referred to a collection entity, the obligor shall
pay a surcharge equal to a percent of the amount of the support arrearage due as of the date
of the referral. The surcharge is in addition to the arrearages and any other fees or charges
owed, and shall be enforced by the collection entity as provided under section 252B.5. Upon
referral to the collection entity, the surcharge is an automatic judgment against the obligor.
9. The director or the director’s designee may file a notice of the surcharge with the clerk
of the district court in the county in which the underlying support order is filed. Upon filing,
the clerk shall enter the amount of the surcharge on the lien index and judgment docket.
10. Following referral of a support arrearage to a collection entity, the surcharge
shall be due and owing and enforceable by a collection entity or child support services
notwithstanding satisfaction of the support obligation or whether the collection entity is
enforcing a support arrearage. However, child support services may waive payment of all or
a portion of the surcharge if waiver will facilitate the collection of the support arrearage.
11. All surcharge payments shall be received and disbursed by the collection services
center. Thesurchargepaymentsreceivedbythecollectionservicescentershallbeconsidered
appropriated receipts as defined in section 8.2 and shall be used to pay the costs of any
contracts with a collection entity.
12. a. A payment received by the collection services center which meets all the following
conditions shall be allocated as specified in paragraph “b”:
(1) The payment is for a case in which arrearages have been referred to a collection entity.
(2) A surcharge is assessed on the arrearages.
(3) Thepaymentiscollectedundertheprovisionsofthecontractwiththecollectionentity.
b. A payment meeting all of the conditions in paragraph “a” shall be allocated between
support and costs and fees, and the surcharge according to the following formula:
(1) The payment shall be divided by the sum of one hundred percent plus the percent
specified in the contract.
(2) The quotient shall be the amount allocated to the support arrearage and other fees
and costs.
(3) The difference between the dividend and the quotient shall be the amount allocated
to the surcharge.
13. Any computer or software programs developed and any records used in relation to a
contract with a collection entity remain the property of the department.