Session of 1998
By Senators Hensley, Barone, Biggs, Downey, Feleciano, Gooch,
Goodwin, Jones, Karr, Lee, Petty and Steineger
          10             AN ACT concerning the attorney general; relating to certain contracts;
11             amending K.S.A. 75-719 and repealing the existing section.
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 75-719 is hereby amended to read as follows: 75-
15       719. (a) The attorney general is authorized to enter into contracts in
16       accordance with this section for collection services for debts owed to
17       courts or restitution owed under an order of restitution.
18           (b) As used in this section:
19           (1) ``Beneficiary under an order of restitution'' means the victim or
20       victims of a crime to whom a district court has ordered restitution be
21       paid;
22           (2) ``contracting agent'' means a person, firm, agency or other entity
23       who contracts hereunder to provide collection services;
24           (3) ``cost of collection'' means the fee specified in contracts hereunder
25       to be paid to or retained by a contracting agent for collection services.
26       ``Cost of collection'' also includes any filing fee required under K.S.A. 60-
27       4303, and amendments thereto, or administrative costs prescribed by the
28       attorney general pursuant to rules and regulations; and
29           (4) ``debts owed to courts'' means any assessment of court costs, fines,
30       fees, moneys expended by the state in providing counsel and other de-
31       fense services to indigent defendants or other charges which a district
32       court judgment has ordered to be paid to the court, and which remain
33       unpaid in whole or in part, and includes any interest or penalties on such
34       unpaid amounts as provided for in the judgment or by law. Debts owed
35       to courts also includes the cost of collection when collection services of
36       a contracting agent hereunder are utilized.
37           (c) (1) Contracts authorized by this section may be entered into with
38       state or federal agencies or political subdivisions of the state of Kansas,
39       including contracts for participation in the collection program authorized
40       by K.S.A. 75-6201 et seq., and amendments thereto. Subject to the pro-
41       visions of paragraph (6) of this subsection, such contracts also may be
42       entered into with private firms or individuals selected by a procurement
43       negotiation committee in accordance with K.S.A. 75-37,102 and amend-

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  1       ments thereto, except that the attorney general shall designate a repre-
  2       sentative to serve as the chief administrative officer member of such com-
  3       mittee and that the other two members of such committee shall be
  4       designated by the director of purchases and the judicial administrator.
  5           (2) Prior to negotiating any contract for collection services, this pro-
  6       curement negotiation committee shall advertise for proposals, negotiate
  7       with firms and individuals submitting proposals and select among those
  8       submitting such proposals the party or parties to contract with for the
  9       purpose of collection services.
10           (3) The attorney general may adopt rules and regulations as deemed
11       appropriate for the administration of this section, including procedures
12       to be used in the negotiation and execution of contracts pursuant to this
13       section and procedures to be followed by those who utilize collection
14       services under such contracts.
15           (4) For purposes of this section, the agencies, firms or individuals
16       with whom contracts are entered under this section shall be known as
17       contracting agents. The attorney general shall publish a list of the con-
18       tracting agents for use by courts or beneficiaries under orders of resti-
19       tution who desire to utilize the collection services of such agents.
20           (5) Each contract entered pursuant to this section shall provide for a
21       fee to be paid to or retained by the contracting agent for collection serv-
22       ices. Such fee shall be designated as the cost of collection hereunder, and
23       shall not exceed 33% of the amount of the debt to be collected. The cost
24       of collection shall be deducted from the amount collected and shall not
25       be in addition to the debts owed to courts or restitution.
26           (6) No contract for the employment of legal counsel for which com-
27       pensation is or may be in the amount of $500 or more for any one claim,
28       shall be valid unless submitted to competitive bid in accordance with
29       K.S.A. 75-3739, and amendments thereto.
30           (d) Judicial districts of the state of Kansas are authorized to utilize
31       the collection services of contracting agents pursuant to this section for
32       the purpose of collecting all outstanding debts owed to courts. Subject to
33       rules and orders of the Kansas supreme court, each judicial district may
34       establish by local rule guidelines for the compromise of court costs, fines,
35       attorney fees and other charges assessed in district court cases.
36           (e) Any beneficiary under an order of restitution entered by a court
37       after this section takes effect is authorized to utilize the collection services
38       of contracting agents pursuant to this section for the purpose of collecting
39       all outstanding amounts owed under such order of restitution.
40           (f) Contracts entered hereunder shall provide for the payment of any
41       amounts collected to the clerk of the district court for the court in which
42       the debt being collected originated. In accounting for amounts collected
43       from any person pursuant to this section, the district court clerk shall

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  1       credit the person's amount owed in the amount of the gross proceeds
  2       collected and shall reduce the amount owed by any person by that portion
  3       of any payment which constitutes the cost of collection pursuant to this
  4       section.
  5           (g) With the appropriate cost of collection paid to the contracting
  6       agent as agreed upon in the contract hereunder, the clerk shall then
  7       distribute amounts collected hereunder as follows:
  8           (1) When collection services are utilized pursuant to subsection (d),
  9       all amounts shall be applied against the debts owed to the court as spec-
10       ified in the original judgment creating the debt;
11           (2) when collection services are utilized pursuant to subsection (e),
12       all amounts shall be paid to the beneficiary under the order of restitution
13       designated to receive such restitution, except where that beneficiary has
14       received recovery from the Kansas crime victims compensation board and
15       such board has subrogation rights pursuant to K.S.A. 74-7312, and
16       amendments thereto, in which case all amounts shall be paid to the board
17       until its subrogation lien is satisfied.
18           (h) Whenever collection services are being utilized against the same
19       debtor pursuant to both subsections (d) and (e), any amounts collected
20       by a contracting agent shall be first applied to satisfy subsection (e) debts,
21       debts pursuant to an order of restitution. Upon satisfaction of all such
22       debts, amounts received from the same debtor shall then be applied to
23       satisfy subsection (d) debts, debts owed to courts.
24           New Sec. 2. The attorney general is authorized to employ independ-
25       ent counsel in any action in which the attorney general is required or
26       authorized to appear pursuant to K.S.A. 75-702, and amendments
27       thereto, or any other provision of law. No contract for the employment
28       of counsel for which compensation is or may be in the amount of $500
29       or more for any one claim, shall be valid unless submitted to competitive
30       bid in accordance with K.S.A. 75-3739, and amendments thereto.
31           Sec. 3. K.S.A. 75-719 is hereby repealed.
32           Sec. 4. This act shall take effect and be in force from and after its
33       publication in the statute book.