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HSB 620

A bill for an act relating to collection of accrued interest on unpaid child support by the department of health and human services.

2025-2026 Regular Session

HHS would collect accrued interest on unpaid child support at the court judgment rate without a court order, potentially aided by waivers to help recover the principal debt.

Committee report approving bill, renumbered as HF 2519.
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Bill Summary · HSB 620

Summary: HSB 620 (Session 2025-2026) — Iowa

Title: A bill for an act relating to collection of accrued interest on unpaid child support by the department of health and human services

Purpose and intent

  • The bill requires the Department of Health and Human Services (HHS) to collect interest that accrues on unpaid child support debt.
  • It clarifies that HHS may collect this accrued interest without needing a court order or a court-backed interest balance account.

Key provisions and changes

  1. Interest accrual on support debts

    • Interest on unpaid child support debts shall accrue at the rate provided in section 535.3 for court judgments.
    • This aligns the interest rate on child support debt with the rate used for court judgments.

  2. Collection authority and accounts

    • HHS "shall" collect the accrued interest (the bill uses both “may” and “shall” in its text due to drafting, but the explanatory section clarifies mandatory collection).
    • HHS is not required to maintain interest balance accounts for accrued interest on support debts.
    • A court order is not required for HHS to collect the accrued interest.

  3. Waiver of interest

    • Child support services may waive the payment of accrued interest if the waiver will facilitate the collection of the underlying support debt.

Who/what is affected

  • The Department of Health and Human Services (HHS) would be responsible for collecting accrued interest on unpaid child support.
  • Individuals with outstanding child support debt would accrue and potentially pay interest at the court judgment rate.
  • Court processes are not required to initiate or continue collection of interest (simplifying enforcement).

Procedural and timeline aspects

  • The bill amends Code section 252C.6 to implement these changes.
  • Effective date: The text references “Code 2026” so provisions would apply to accrual and collection practices moving forward from enactment, with the same rate as court judgments (per §535.3).
  • Administrative changes: removes language requiring HHS to maintain interest balance accounts; clarifies that court orders are not required to collect accrued interest.

Additional context from legislative actions

  • Committee activity shows rapid progression in early 2026:
    • Subcommittee recommended passage (early February 2026).
    • Full committee approved the bill and renumbered it as HF 2519 (February 16, 2026).
  • Indicates bipartisan committee support and a move to advance to floor consideration.

Potential impact

  • Accelerates collection of interest on delinquent child support obligations by authorizing HHS to collect accrued interest without court involvement.
  • Creates potential additional revenue from unpaid child support via interest at the rate used for court judgments.
  • Provides a potential waiver pathway where waiving interest could help recover the underlying debt.
  • Removes requirement for maintaining separate interest balance accounts, potentially reducing administrative overhead for HHS.

Note: The explanatory section clarifies that while the bill requires collection of accrued interest, it also allows for waivers in cases where waiving interest would help collect the principal debt.

Compiled from official sources — confirm details with the bill’s official record.

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