Sec. 14.1. (a) This section applies after December 31, 2006. (b) The bureau shall establish a program to allow a prosecuting attorney with which the bureau has contracted under section 13.1 of this chapter to contract with a collection agency licensed under IC 25-11 to provide child support enforcement services. (c) 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. (d) 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 . (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) A collection agency that contracts with the bureau or a prosecuting attorney under this section may, in addition to the collection of arrearages on a child support 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 (g).
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