Bills › 89th General Assembly
Where it is now
- Done: IntroducedJanuary 13, 2021
- Done: SubcommitteeJanuary 13, 2021
- Done: House committeeFebruary 3, 2021
- Done: Passes the HouseMarch 23, 202189–7
- Done: Senate committeeMarch 30, 2021
- Stopped: Passes the SenateDied when the General Assembly ended
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2022 session adjourned on May 24, 2022, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary Counties that issue driver's licenses can charge people who live outside the county a convenience fee of up to $10. This fee helps the county's general fund when someone renews or gets a new license or ID. However, people who pay property taxes in that county do not have to pay this extra fee if they show proof of their payment.1
Read the official explanation
Current law authorizes certain counties to issue driver’s licenses and nonoperator’s identification cards if the county meets standards set by the department of transportation. A county retains for deposit in the county general fund $7 of fees received for each issuance or renewal of driver’s licenses and nonoperator’s identification cards. _____ bill allows a county authorized to issue driver’s licenses to charge a convenience fee, not to exceed $10, for the issuance or renewal of a driver’s license or nonoperator’s identification card to a person who is not a resident of the county. However, the county cannot charge the convenience fee to a nonresident person who pays property tax to the county if the person provides proof that they paid property tax, such as a receipt from the county treasurer or another form of proof as determined by the county. The county treasurer retains the entire convenience fee collected for deposit in the county general fund.
Changed since by amendment H-1237; see Amendments.
House subcommittee
Named January 13, 2021. On February 1, 2021 it recommended amendment and passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill allows counties to choose whether to charge a $10 convenience fee to non-residents for driver's license or identification card services. If all counties adopt the fee, it is estimated to increase county general funds by $690,000 annually, though the amount depends on how many counties participate. The Department of Transportation would face a one-time information technology cost of approximately $4,000 and may see increased labor costs.3
Read the fiscal note
Description
House File 419 authorizes Iowa counties to charge a $10 convenience fee for the issuance or renewal of a driver’s license or nonoperator’s identification card to a person who is not a resident of that county. The person seeking the driver’s license or nonoperator’s identification card may provide proof that the person, or the person’s spouse, paid property tax to the county in order to be exempt from the convenience fee. Under the Bill, counties are not required to charge a convenience fee, but may do so at their discretion. Convenience fees collected by counties will be deposited into the respective counties’ general fund.
Background
Currently, counties keep $7 of the fees charged for each issuance and renewal of any driver’s license or nonoperator’s identification card that is issued at their county driver’s license sites. The Department of Transportation (DOT) reports that in calendar year (CY) 2019, there were approximately 69,000 transactions for the issuance or renewal of a driver’s license or nonoperator’s identification card that were performed at the county level for individuals who did not reside in the county that served them. These 69,000 transactions equate to approximately 20.0% of total transactions by counties in CY 2019.
Assumptions
The convenience fee will not reduce demand for driver’s license or nonoperator’s identification card transactions that occur outside the licensee’s county of residence.
Fiscal Impact
If renewals match patterns in CY 2019, this Bill would result in an estimated annual increase to county general funds of $170,000 if 25.0% of counties adopt the fee, $340,000 if 50.0% of counties adopt the fee, $510,000 if 75.0% of counties adopt the fee, and $690,000 if 100.0% of counties adopt the fee.
The DOT may see an increase in labor costs if licensees decide to use a DOT service center to issue or renew a driver’s license or nonoperator’s identification card instead of a county site in order to avoid additional fees. In addition, there would be a one-time information technology cost to the DOT of approximately $4,000 associated with the Bill.
Sources
- Department of Transportation
- Legislative Services Agency
- Driver's License Station Convenience Fee · March 24, 2021 · $4,000
- Driver's License Station Convenience Fee · February 11, 2021
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89th General Assembly
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Tried before
This idea has been filed in an earlier General Assembly. None got through a chamber.
- HSB 673 HSB 67388th General Assembly · Approved by committee · very similarCleared committee
Similar bills this General Assembly
- HF 267 Allowing counties to collect a fee for the issuance and renewal of driver’s licenses and n…90th General Assembly · Renumbered as HF 680Nearly identical
Matched by wording or an identical title.