SB 153-2_ Filed 02/23/2006, 11:07 Richardson


Text Box


    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that Engrossed Senate Bill 153 be amended to read as follows:

SOURCE: Page 1, line 1; (06)MO015304.1. -->     Page 1, between the enacting clause and line 1, begin a new paragraph and insert:
SOURCE: IC 12-17-2-18; (06)MO015304.1. -->     "SECTION 1. IC 12-17-2-18, AS AMENDED BY P.L.234-2005, SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 18. (a) The bureau shall make the agreements necessary for the effective administration of the plan with local governmental officials within Indiana. The bureau shall contract with:
        (1) a prosecuting attorney;
        (2) a private attorney if the bureau determines that a reasonable contract cannot be entered into with a prosecuting attorney and the determination is approved by at least two-thirds (2/3) of the Indiana child custody and support advisory committee (established by IC 33-24-11-1); or
        (3) a collection agency licensed under IC 25-11 to collect arrearages on child support orders under which collections have not been made on arrearages for at least two (2) years;
in each judicial circuit to undertake activities required to be performed under Title IV-D of the federal Social Security Act (42 U.S.C. 651), including establishment of paternity, establishment, enforcement, and modification of child support orders, activities under the Uniform Reciprocal Enforcement of Support Act (IC 31-2-1, before its repeal) or the Uniform Interstate Family Support Act (IC 31-18, or IC 31-1.5 before its repeal), and if the contract is with a prosecuting attorney, prosecutions of welfare fraud.
    (b) The hiring of an attorney by an agreement or a contract made under this section is not subject to the approval of the attorney general under IC 4-6-5-3. An agreement or a contract made under this section is not subject to IC 4-13-2-14.3 or IC 5-22.
    (c) Subject to section 18.5 of this chapter, a prosecuting attorney with which the bureau contracts under subsection (a):
        (1) may contract with a collection agency licensed under IC 25-11 to provide child support enforcement services; and
        (2) shall contract with a collection agency licensed under IC 25-11 to collect arrearages on child support orders under which collections have not been made on arrearages for at least two (2) years.
    (d) A prosecuting attorney or private attorney entering into an agreement or a contract with the bureau under this section enters into an attorney-client relationship with the state to represent the interests of the state in the effective administration of the plan and not the interests of any other person. An attorney-client relationship is not created with any other person by reason of an agreement or contract with the bureau.
    (e) At the time that an application for child support services is made, the applicant must be informed that:
        (1) an attorney who provides services for the child support bureau is the attorney for the state and is not providing legal representation to the applicant; and
        (2) communications made by the applicant to the attorney and the advice given by the attorney to the applicant are not confidential communications protected by the privilege provided under IC 34-46-3-1.
    (f) A prosecuting attorney or private attorney who contracts or agrees under this section to undertake activities required to be performed under Title IV-D is not required to mediate, resolve, or litigate a dispute between the parties relating to the amount of parenting time or parenting time credit.
     (g) This section expires June 30, 2007.".
SOURCE: Page 1, line 1; (06)MO015304.1. -->     Page 1, line 1, delete "IC 12-17-2-18, AS AMENDED BY P.L.234-2005," and insert "IC 12-17-2-18.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION".
    Page 1, line 2, delete "SECTION 31, IS AMENDED".
    Page 1, line 3, delete "18." and insert "18.1".
    Page 3, between lines 3 and 4, begin a new paragraph and insert:
    " (h) This section is effective July 1, 2007.
SOURCE: IC 12-17-2-18.5; (06)MO015304.3. -->     SECTION 3. IC 12-17-2-18.5, AS AMENDED BY P.L.234-2005, SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 18.5. (a) The bureau shall establish a program to allow a prosecuting attorney with which the bureau has contracted under section 18 of this chapter to contract with a collection agency licensed under IC 25-11 to provide child support enforcement

services.
    (b) The bureau shall:
        (1) establish a list of approved collection agencies with which a prosecuting attorney may contract under this section;
        (2) establish requirements for participation in the program established under this section to assure:
            (A) effective administration of the plan; and
            (B) compliance with all federal and state statutes, regulations, and rules;
        (3) update and review the list described in subdivision (1) and forward a copy of the updated list to each prosecuting attorney annually; and
        (4) preapprove or approve all contracts between a collection agency and a prosecuting attorney.
    (c) A contract between a prosecuting attorney and a collection agency under this section must include the following provisions:
        (1) A provision that records of a contractor operated child support enforcement system are subject to inspection and copying to the same extent the records would be subject to inspection and copying if the contractor were a public agency under IC 5-14-3.
        (2) A provision that records that are provided by a contractor to the prosecuting attorney that relate to compliance by the contractor with the terms of the contract are subject to inspection and copying in accordance with IC 5-14-3.
    (d) Not later than July 1, 2006, the bureau shall provide the legislative council with a report:
        (1) evaluating the effectiveness of the program established under this section; and
        (2) evaluating the impact of arrearage reductions for child support orders under which collection agencies have collected under IC 12-17-2-18(c).
    (e) The bureau is not liable for any costs related to a contract entered into under this section that are disallowed for reimbursement by the federal government under the Title IV-D program of the federal Social Security Act.
    (f) The bureau shall treat costs incurred by a prosecuting attorney under this section as administrative costs of the prosecuting attorney.
    (g) Contracts between a collection agency licensed under IC 25-11 and the bureau or a prosecuting attorney:
        (1) must:
            (A) be in writing;
            (B) include:
                (i) all fees, charges, and costs, including administrative and application fees; and
                (ii) the right of the bureau or the prosecuting attorney to cancel the contract at any time;
            (C) require the collection agency, upon the request of the

bureau or the prosecuting attorney, to provide the:
                (i) source of each payment received for arrearage on a child support order;
                (ii) form of each payment received for arrearage on a child support order;
                (iii) amount and percentage that is deducted as a fee or a charge from each payment of arrearage on a child support order; and
                (iv) amount of arrearage owed under a child support order; and
            (D) be one (1) year renewable contracts; and
        (2) may be negotiable contingency contracts in which a collection agency may not collect a fee that exceeds fifteen percent (15%) of the arrearages collected per case.
     (h) This section expires June 30, 2007.".

SOURCE: Page 3, line 4; (06)MO015304.3. -->     Page 3, line 4, delete "IC 12-17-2-18.5, AS AMENDED BY P.L.234-2005," and insert "IC 12-17-2-18.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION".
    Page 3, line 5, delete "SECTION 32, IS AMENDED".
    Page 3, line 6, delete "18.5." and insert "18.6."
    Page 3, line 8, strike "18" and insert " 18.1".
    Page 3, line 39, strike "IC 12-17-2-18(c)" and insert " IC 12-17-2-18.1(c).".
    Page 4, between lines 33 and 34, begin a new paragraph and insert:
    " (i) This section is effective July 1, 2007.".
    Renumber all SECTIONS consecutively.
    (Reference is to ESB 153 as printed February 21, 2006.)

________________________________________

Representative Richardson


MO015304/DI 107     2006