§ 31-40-1-6 — Contracts for enforcement and collection of parental reimbursement obligations

(a) The department may contract with any of
the following, on terms and conditions with respect to compensation
and payment or reimbursement of expenses as the department may
determine, for the enforcement and collection of any parental
reimbursement obligation established by order entered by the court
under section 3 or 5(g) of this chapter:
(1) The prosecuting attorney of the county in which the juvenile
court that ordered or approved the services is located or in which
the obligor resides.
(2) An attorney licensed to practice law in Indiana, if the attorney
is not an employee of the department.
(3) A private collection agency licensed under IC 25-11.
(b) A contract entered into under this section is subject to approval
under IC 4-13-2-14.1.
(c) Any fee payable to a prosecuting attorney under a contract under
subsection (a)(1) shall be deposited in the county general fund and
credited to a separate account identified as the prosecuting attorney's
child services collections account. The prosecuting attorney may
expend funds credited to the prosecuting attorney's child services
collections account, without appropriation, only for the purpose of
supporting and enhancing the functions of the prosecuting attorney in
enforcement and collection of parental obligations to reimburse the
department.
(d) Contracts between a prosecuting attorney, a private attorney, or
a collection agency licensed under IC 25-11 and the department:
(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 department to cancel the contract at any
time;
(C) require the prosecuting attorney, private attorney, or
collection agency, upon the request of the department, to
provide the:
(i) source of each payment received for a parental
reimbursement order;
(ii) form of each payment received for a parental
reimbursement order; and
(iii) amount and percentage that is deducted as a fee or a
charge from each payment on the parental reimbursement
order; and
(D) have a term of not more than four (4) years; and
(2) may be negotiable contingency contracts in which a
prosecuting attorney, private attorney, or collection agency may
not collect a fee that exceeds fifteen percent (15%) of the parental
reimbursement collected per case.
(e) A prosecuting attorney, private attorney, or collection agency
that contracts with the department under this section may, in addition
to the collection of the parental reimbursement order, assess and collect
from an obligor all fees, charges, costs, and other expenses as provided
under the terms of the contract described in subsection (d).

Legislative History

As added by P.L.273-1999, SEC.122. Amended by P.L.145-2006, SEC.363; P.L.146-2008, SEC.670; P.L.182-2009(ss), SEC.389.