Bills › 90th General Assembly
Allowing counties to collect a fee for the issuance and renewal of driver’s licenses and nonoperator’s identification cards to persons who reside outside the county
Sponsored by the House Local Government (companion To Sf 217 By Committee on Local Government) Committee
Where it is now
- Done: IntroducedJanuary 25, 2023
- Done: SubcommitteeJanuary 25, 2023
- Done: House committeeFebruary 9, 2023
- Skipped: Passes the HouseContinued as HF 680
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Became HF 680 → Its progress continues under the new number. Go to HF 680 What’s a funnel?
What’s in it
AI summary Counties that issue driver's licenses can now charge a $10 convenience fee to people who do not live in that county. This fee applies to anyone getting a new license or renewing an old one, unless they can prove they pay property taxes in that county. The county keeps all the money collected from these fees to use for its own general fund.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. This bill allows a county authorized to issue driver’s licenses 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 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.
House subcommittee
Named February 21, 2023. On March 1, 2023 it recommended passage. Vote Total: 3-0.
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
Can’t be estimated Compare with other bills
AI summary This bill allows counties to charge a $10 convenience fee to nonresidents who get or renew a driver's license or identification card, unless they prove they pay property taxes in that county. If adopted, this could increase county general funds by an estimated range of $179,333 to $717,330 annually. The Department of Transportation expects to absorb a one-time information technology cost of approximately $6,000 using existing resources.3
Read the fiscal note
Description
House File 680 allows, but does not require, Iowa counties to charge a $10 convenience fee for the issuance or renewal of a driver’s license or nonoperator’s identification card to individuals who are not a resident of that county. Individuals that provide proof of property tax payment to the county are exempt from the convenience fee. If a county charges a convenience fee, the Bill authorizes the county to retain the entire fee revenue in its General Fund.
Background
Currently, counties are authorized to retain $7 of the total fees collected for each issuance or renewal of driver’s licenses and nonoperator’s identification cards regardless of the licensee’s resident status.
The Department of Transportation (DOT) reports 327,577 transactions for issuance of a driver’s license or nonoperator’s identification card at the county level in calendar year (CY) 2022. Of that total, 71,733 transactions were performed at the county level for individuals who did not reside in the county that served them. These 71,733 transactions were 21.9% of total transactions by counties in CY 2022.
The DOT reports that in CY 2022, 12 counties issued 30.0% or more of their driver’s licenses or nonoperator’s identification cards to individuals who did not reside in the county. Specifically, Jones County had the highest volume of issuance to nonresidents with 7,192 (61.7%) driver’s licenses or nonoperator’s identification cards issued to individuals who did not reside in the county.
Assumptions
- All Iowa counties will charge the $10 convenience fee.
- Calendar year 2022 renewal data and patterns were used for estimating purposes.
Fiscal Impact
While the number of annual nonresident renewals cannot be estimated, Table 1 shows a range of nonresident renewals and estimated aggregate annual increases to county general funds. Table 1 — Estimated Range of Annual Fiscal Impact Under HF 680 The DOT may see an increase in labor costs if licensees decide to use a DOT service center instead of a county site for issuance of a driver’s license or nonoperator’s identification card to avoid additional fees. In addition, there would be a one-time information technology (IT) cost to the DOT of approximately $6,000 associated with the Bill. The DOT expects to absorb these labor and IT costs within its existing staff and resources.
Sources
- Department of Transportation
- LSA calculations
- County Issuance of Driver's Licenses to Nonresidents, Fee · March 24, 2023
- County Issuance of Driver’s Licenses to Nonresidents, Fee · February 15, 2023
- County Issuance of Driver’s Licenses to Nonresidents, Fee · February 13, 2023
Family tree
Study bill
Earlier and later bills are matched by wording or an identical title.
Tried before
This idea has been filed in 2 earlier General Assemblies. None became law, though one got through a chamber.
- HF 419 Allowing counties to collect a fee for the issuance and renewal of driver’s licenses and n…89th General Assembly · Passed House · same titlePassed a chamber
- HF 2574 Allowing counties to collect a fee for the issuance and renewal of driver’s licenses and n…88th General Assembly · In committee · very similarCleared committee
Matched by wording or an identical title.