HB 2470--
Session of 1997
By Representatives Flora, Bradley, Crow, Hutchins, Kirk, Klein, Mays,
Nichols, Packer, Phelps, Ruff, Sawyer, Storm and Toelkes

9 AN ACT concerning costs; relating to debts owed to courts; amending 10 K.S.A. 1996 Supp. 75-719 and repealing the existing section. 11 12 Be it enacted by the Legislature of the State of Kansas: 13 New Section 1. (a) Clerks of the district court and court trustees 14 authorized to transact financial matters for a district court, subject to 15 conditions set out in this section, are hereby authorized to accept payment 16 of fees, docket fees, child support, maintenance, fines and restitution by 17 bank card draft from any valid and unexpired credit card issued by a bank 18 card company approved by the office of judicial administration. 19 (b) If any of the approved bank card issuers redeem the bank card 20 draft at a discounted rate, such discount shall be charged against the 21 portion of the payment allotted to the clerk's fees, the state, of, if the 22 payment is in the nature of support the discount shall be paid from the 23 court trustee's operating fund if one has been established in the county. 24 Any discount from the face value of a bank card draft shall not exceed 25 3%. Clerks and court trustees, subject to conditions set out in this section, 26 may be authorized to either receive or make payments through the me- 27 dium of electronic fund transfers. 28 Sec. 2. K.S.A. 1996 Supp. 75-719 is hereby amended to read as fol- 29 lows: 75-719. (a) The attorney general is authorized to enter into contracts 30 in accordance with this section for collection services for debts owed to 31 courts or restitution owed under an order of restitution. 32 (b) As used in this section: 33 (1) ``Beneficiary under an order of restitution'' means the victim or 34 victims of a crime to whom a district court has ordered restitution be 35 paid; 36 (2) ``contracting agent'' means a person, firm, agency or other entity 37 who contracts hereunder to provide collection services; 38 (3) ``cost of collection'' means the fee specified in contracts hereunder 39 to be paid to or retained by a contracting agent for collection services. 40 ``Cost of collection'' also includes any filing fee required under K.S.A. 60- 41 4303 and amendments thereto or administrative costs prescribed by the 42 attorney general pursuant to rules and regulations; and HB 2470

 1    (4)  ``debts owed to courts'' means any assessment of court costs, fines,
 2  fees or other charges which a district court judgment has ordered to be
 3  paid to the court, and which remain unpaid in whole or in part, and
 4  includes any interest or penalties on such unpaid amounts as provided
 5  for in the judgment or by law. ``Debts owed to courts'' also includes the
 6  cost of collection when collection services of a contracting agent here-
 7  under are utilized.
 8    (c) (1)  Contracts authorized by this section may be entered into with
 9  state or federal agencies or political subdivisions of the state of Kansas,
10  including contracts for participation in the collection program authorized
11  by K.S.A. 75-6201 et seq. and amendments thereto. Such contracts also
12  may be entered into with private firms or individuals selected by a pro-
13  curement negotiation committee in accordance with K.S.A. 75-37,102
14  and amendments thereto, except that the attorney general shall designate
15  a representative to serve as the chief administrative officer member of
16  such committee and that the other two members of such committee shall
17  be designated by the director of purchases and the judicial administrator.
18    (2)  Prior to negotiating any contract for collection services, this pro-
19  curement negotiation committee shall advertise for proposals, negotiate
20  with firms and individuals submitting proposals and select among those
21  submitting such proposals the party or parties to contract with for the
22  purpose of collection services.
23    (3)  The attorney general may adopt rules and regulations as deemed
24  appropriate for the administration of this section, including procedures
25  to be used in the negotiation and execution of contracts pursuant to this
26  section and procedures to be followed by those who utilize collection
27  services under such contracts.
28    (4)  For purposes of this section, the agencies, firms or individuals
29  with whom contracts are entered under this section shall be known as
30  contracting agents. The attorney general shall publish a list of the con-
31  tracting agents for use by courts or beneficiaries under orders of resti-
32  tution who desire to utilize the collection services of such agents.
33    (5)  Each contract entered pursuant to this section shall provide for a
34  fee to be paid to or retained by the contracting agent for collection serv-
35  ices. Such fee shall be designated as the cost of collection hereunder, and
36  shall not exceed 33% of the amount of the debt to be collected. The cost
37  of collection shall be deducted from the amount collected and shall not
38  be in addition to the debts owed to courts or restitution.
39    (d)  Judicial districts of the state of Kansas are authorized to utilize
40  the collection services of contracting agents pursuant to this section for
41  the purpose of collecting all outstanding debts owed to courts. Subject to
42  rules and orders of the Kansas supreme court, each judicial district may
43  establish by local rule guidelines for the compromise of court costs, fines,
HB 2470

 1  attorney fees and other charges assessed in district court cases.
 2    (e)  Any beneficiary under an order of restitution entered by a court
 3  after this section takes effect is authorized to utilize the collection services
 4  of contracting agents pursuant to this section for the purpose of collecting
 5  all outstanding amounts owed under such order of restitution.
 6    (f)  Contracts entered hereunder shall provide for the payment of any
 7  amounts collected to the clerk of the district court for the court in which
 8  the debt being collected originated. In accounting for amounts collected
 9  from any person pursuant to this section, the district court clerk shall
10  credit the person's amount owed in the amount of the gross proceeds
11  collected and shall reduce the amount owed by any person by that portion
12  of any payment which constitutes the cost of collection pursuant to this
13  section.
14    (g)  With the appropriate cost of collection paid to the contracting
15  agent as agreed upon in the contract hereunder, the clerk shall then
16  distribute amounts collected hereunder as follows:
17    (1)  When collection services are utilized pursuant to subsection (d),
18  all amounts shall be applied against the debts owed to the court as spec-
19  ified in the original judgment creating the debt;
20    (2)  when collection services are utilized pursuant to subsection (e),
21  all amounts shall be paid to the beneficiary under the order of restitution
22  designated to receive such restitution, except where that beneficiary has
23  received recovery from the Kansas crime victims compensation board and
24  such board has subrogation rights pursuant to K.S.A. 74-7312 and amend-
25  ments thereto, in which case all amounts shall be paid to the board until
26  its subrogation lien is satisfied.
27    (h)  Whenever collection services are being utilized against the same
28  debtor pursuant to both subsections (d) and (e), any amounts collected
29  by a contracting agent shall be first applied to satisfy subsection (e) debts,
30  debts pursuant to an order of restitution. Upon satisfaction of all such
31  debts, amounts received from the same debtor shall then be applied to
32  satisfy subsection (d) debts, debts owed to courts.
33    Sec. 3.  K.S.A. 1996 Supp. 75-719 is hereby repealed.
34    Sec. 4.  This act shall take effect and be in force from and after its
35  publication in the statute book.