As Amended by Senate Committee

          Session of 1998
By Committee on Judiciary
          10             AN ACT concerning courts; relating to collection of debts owed thereto;
11             attorney general; amending K.S.A. 75-719 and repealing the existing
12             section.
14       Be it enacted by the Legislature of the State of Kansas:
15           Section 1. K.S.A. 75-719 is hereby amended to read as follows: 75-
16       719. (a) The attorney general is authorized to enter into contracts in
17       accordance with this section for collection services for debts owed to
18       courts or restitution owed under an order of restitution.
19           (b) As used in this section:
20           (1) ``Beneficiary under an order of restitution'' means the victim or
21       victims of a crime to whom a district court has ordered restitution be
22       paid;
23           (2) ``contracting agent'' means a person, firm, agency or other entity
24       who contracts hereunder to provide collection services;
25           (3) ``cost of collection'' means the fee specified in contracts hereunder
26       to be paid to or retained by a contracting agent for collection services.
27       ``Cost of collection'' also includes any filing fee required under K.S.A. 60-
28       4303 and amendments thereto or administrative costs prescribed by the
29       attorney general pursuant to rules and regulations; and
30           (4) ``debts owed to courts'' means any assessment of court costs, fines,
31       fees, moneys expended by the state in providing counsel and other de-
32       fense services to indigent defendants or other charges which a district
33       court judgment has ordered to be paid to the court, and which remain
34       unpaid in whole or in part, and includes any interest or penalties on such
35       unpaid amounts as provided for in the judgment or by law. Debts owed
36       to courts also includes the cost of collection when collection services of
37       a contracting agent hereunder are utilized.
38        (c) The cost of collection shall be paid by the defendant as an
39       additional court cost in all criminal, traffic and juvenile offender
40       cases where the defendant fails to pay any amount ordered by the
41       court and the court utilizes the services of a contracting agent pur-
42       suant to this section. The cost of collection shall be deemed an ad-
43       ministrative fee to pay the actual costs of collection made necessary

SB 599--Am.


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

SB 599--Am.


  1       services of contracting agents pursuant to this section for the purpose of
  2       collecting all outstanding amounts owed under such order of restitution.
  3           (f) (g) Contracts entered hereunder shall provide for the payment of
  4       that any amounts collected and received by a contracting agent shall
  5       be paid to the clerk of the district court for the court in which the debt
  6       being collected originated, after the contracting agent first retains the
  7       cost of collection. In accounting for amounts collected from any person
  8       pursuant to this section, the district court clerk shall credit the person's
  9       amount owed in the amount of the gross net proceeds collected, after
10       first deducting the collection fee cost of the collection, and shall not
11       otherwise reduce the amount owed by any person by that portion of any
12       payment which constitutes the cost of collection pursuant to this section.
13           (g) (h) With the appropriate cost of collection paid to the contracting
14       agent as agreed upon in the contract hereunder, the clerk shall then
15       distribute amounts collected hereunder as follows:
16           (1) When collection services are utilized pursuant to subsection (d)
17       (e), all amounts shall be applied against the debts owed to the court as
18       specified in the original judgment creating the debt;
19           (2) when collection services are utilized pursuant to subsection (e)
20       (f), all amounts shall be paid to the beneficiary under the order of resti-
21       tution designated to receive such restitution, except where that benefi-
22       ciary has received recovery from the Kansas crime victims compensation
23       board and such board has subrogation rights pursuant to K.S.A. 74-7312
24       and amendments thereto, in which case all amounts shall be paid to the
25       board until its subrogation lien is satisfied.
26           (h) (i) Whenever collection services are being utilized against the
27       same debtor pursuant to both subsections (d) (e) and (e) (f), any amounts
28       collected by a contracting agent shall be first applied to satisfy subsection
29       (e) (f) debts, debts pursuant to an order of restitution. Upon satisfaction
30       of all such debts, amounts received from the same debtor shall then be
31       applied to satisfy subsection (d) (e) debts, debts owed to courts.
32           Sec. 2. K.S.A. 75-719 is hereby repealed.
33           Sec. 3. This act shall take effect and be in force from and after its
34       publication in the statute book Kansas register.