Fiscal Note
Fiscal Services Division
HF 419 – Driver’s License Station Convenience Fee (LSB1490HV)
Staff Contact: Austin Brinks (515.725.2200) austin.brinks@legis.iowa.gov
Fiscal Note Version – As amended and passed by the House
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.
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Sources
Department of Transportation
Legislative Services Agency
/s/ Holly M. Lyons
March 24, 2021
Doc ID 12179581217958
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in
developing this fiscal note is available from the Fiscal Services Division of the Legislative Services
Agency upon request.
www.legis.iowa.gov
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