Iowa Bill Would Allow Hiring of Collectors for Unpaid Tickets, Court Fines

The Iowa Senate is considering legislation that would bring a collection agency into the process if a delinquent debtor hasn’t paid his outstanding parking tickets or court fines within 90 days. Other state agencies, including the Department of Revenue, may step in before the end of the 90-day window in order to attempt to collect the debt.

Legislators are considering the proposal in order to collect on what the Iowa Legislative Service Agency estimates is some $476 million in unpaid fines.

Under the proposal, the courts and ticket-issuing authorities would have to agree to participate in the program in order to benefit from the collections. There would be no bundling of debt among different government entities.

Senate Study Bill 3279 calls for debtors to pay a 25 percent fee in addition to any outstanding debts, and the debtor would be banned from renewing a professional license with the state, as required for such professions as plumbers and nurses. The bill can be tracked through the Iowa legislature Web site.

The proposed legislation has received committee approval, but has yet to go to the floor of the Iowa Senate.