H.F. 2050 Section 1. Section 602.8107, subsection 2, paragraph c, 1 subparagraph (1), Code 2014, is amended to read as follows: 2 (1) Pecuniary damages as defined in section 910.1, 3 subsection 3 , payable to a victim other than an insurer . 4 Sec. 2. Section 602.8107, subsection 2, paragraph c, Code 5 2014, is amended by adding the following new subparagraph: 6 NEW SUBPARAGRAPH . (5) Pecuniary damages as defined in 7 section 910.1, subsection 3, payable to an insurer. 8 Sec. 3. Section 910.1, Code 2014, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 1A. “Insurer” means an insurance company 11 governed by the provisions of chapter 515, 518, or 518A, or a 12 bonding company authorized by the commissioner of insurance. 13 Sec. 4. Section 910.1, subsections 3, 4, and 5, Code 2014, 14 are amended to read as follows: 15 3. “Pecuniary damages” means all damages to the extent not 16 paid by an insurer, which a victim could recover against the 17 offender in a civil action arising out of the same facts or 18 event, except punitive damages and damages for pain, suffering, 19 mental anguish, and loss of consortium. Without limitation, 20 “pecuniary damages” includes damages for wrongful death and 21 expenses incurred for psychiatric or psychological services 22 or counseling or other counseling for the victim which became 23 necessary as a direct result of the criminal activity. 24 4. “Restitution” means payment of pecuniary damages to 25 a victim in an amount and in the manner provided by the 26 offender’s plan of restitution. “Restitution” also includes 27 fines, penalties, and surcharges, the contribution of funds to 28 a local anticrime organization which provided assistance to law 29 enforcement in an offender’s case, the payment of crime victim 30 compensation program reimbursements, payment of restitution 31 to public agencies pursuant to section 321J.2, subsection 32 13 , paragraph “b” , court costs including correctional fees 33 approved pursuant to section 356.7 , court-appointed attorney 34 fees ordered pursuant to section 815.9 , including the expense 35 -1- LSB 5612HH (4) 85 jm/nh 1/ 7

H.F. 2050 of a public defender, and the performance of a public service 1 by an offender in an amount set by the court when the offender 2 cannot reasonably pay all or part of the court costs including 3 correctional fees approved pursuant to section 356.7 , or 4 court-appointed attorney fees ordered pursuant to section 5 815.9 , including the expense of a public defender, and payment 6 to the medical assistance program pursuant to chapter 249A 7 for expenditures paid on behalf of the victim resulting from 8 the offender’s criminal activities including investigative 9 costs incurred by the Medicaid fraud control unit pursuant to 10 section 249A.50 . If a victim has received compensation from 11 an insurer, the court shall order restitution to be paid to 12 the source of such payments in an amount which the source of 13 such payments could recover against the offender in a civil 14 action arising out of the same facts or events, subject to the 15 priority of payment provisions in the restitution plan under 16 section 910.2. 17 5. “Victim” means a person who has suffered pecuniary 18 damages as a result of the offender’s criminal activities. 19 However, for purposes of this chapter , an insurer is not a 20 victim and does not have a right of subrogation except as 21 provided in the insurance policy or contract . However, the 22 insurer has the right to be included in any restitution plan. 23 The crime victim compensation program is not an insurer for 24 purposes of this chapter , and the right of subrogation provided 25 by section 915.92 does not prohibit restitution to the crime 26 victim compensation program. 27 Sec. 5. Section 910.2, Code 2014, is amended to read as 28 follows: 29 910.2 Restitution or community service to be ordered by 30 sentencing court. 31 1. In all criminal cases in which there is a plea of guilty, 32 verdict of guilty, or special verdict upon which a judgment 33 of conviction is rendered, the sentencing court shall order 34 that restitution be made by each offender to the victims of 35 -2- LSB 5612HH (4) 85 jm/nh 2/ 7

H.F. 2050 the offender’s criminal activities, to the clerk of court for 1 fines, penalties, surcharges, and, to the extent that the 2 offender is reasonably able to pay, for crime victim assistance 3 reimbursement, restitution to public agencies pursuant to 4 section 321J.2, subsection 13 , paragraph “b” , court costs 5 including correctional fees approved pursuant to section 6 356.7 , court-appointed attorney fees ordered pursuant to 7 section 815.9 , including the expense of a public defender, when 8 applicable, contribution to a local anticrime organization, 9 or restitution to the medical assistance program pursuant 10 to chapter 249A , or restitution to an insurer . However, 11 victims shall be paid in full before fines, penalties, and 12 surcharges, crime victim compensation program reimbursement, 13 public agencies, court costs including correctional fees 14 approved pursuant to section 356.7 , court-appointed attorney 15 fees ordered pursuant to section 815.9 , including the expenses 16 of a public defender, contributions to a local anticrime 17 organization, or the medical assistance program , or an 18 insurer are paid. In structuring a plan of restitution, the 19 court shall provide for payments in the following order of 20 priority: victim, fines, penalties, and surcharges, crime 21 victim compensation program reimbursement, public agencies, 22 court costs including correctional fees approved pursuant to 23 section 356.7 , court-appointed attorney fees ordered pursuant 24 to section 815.9 , including the expense of a public defender, 25 contribution to a local anticrime organization, and the medical 26 assistance program , and an insurer . 27 2. When the offender is not reasonably able to pay all or a 28 part of the crime victim compensation program reimbursement, 29 public agency restitution, court costs including correctional 30 fees approved pursuant to section 356.7 , court-appointed 31 attorney fees ordered pursuant to section 815.9 , including the 32 expense of a public defender, contribution to a local anticrime 33 organization, or medical assistance program restitution, 34 or insurer restitution, the court may require the offender 35 -3- LSB 5612HH (4) 85 jm/nh 3/ 7

H.F. 2050 in lieu of that portion of the crime victim compensation 1 program reimbursement, public agency restitution, court costs 2 including correctional fees approved pursuant to section 3 356.7 , court-appointed attorney fees ordered pursuant to 4 section 815.9 , including the expense of a public defender, 5 contribution to a local anticrime organization, or medical 6 assistance program restitution , or insurer restitution for 7 which the offender is not reasonably able to pay, to perform 8 a needed public service for a governmental agency or for a 9 private nonprofit agency which provides a service to the youth, 10 elderly, or poor of the community. When community service is 11 ordered, the court shall set a specific number of hours of 12 service to be performed by the offender which, for payment 13 of court-appointed attorney fees ordered pursuant to section 14 815.9 , including the expenses of a public defender, shall be 15 approximately equivalent in value to those costs. The judicial 16 district department of correctional services shall provide for 17 the assignment of the offender to a public agency or private 18 nonprofit agency to perform the required service. 19 Sec. 6. NEW SECTION . 910.16 Civil judgment against offender 20 for restitution to insurer. 21 1. If an offender has fulfilled all conditions of probation 22 or parole, except for payment to an insurer under the plan of 23 restitution, the court shall enter a civil judgment against the 24 offender in favor of the insurer for any amount of restitution 25 remaining unpaid to the insurer under the plan of restitution, 26 prior to discharge from probation or parole. Upon entry of 27 the civil judgment by the court in favor of the insurer, the 28 portion of the restitution payable to the insurer shall be 29 considered paid in full for purposes of the criminal case. 30 2. Upon the expiration of an offender’s sentence, if an 31 offender is not placed on probation or parole, the court shall 32 enter a civil judgment against the offender in favor of the 33 insurer in the same manner as subsection 1, for any amount of 34 restitution remaining unpaid to the insurer under the plan of 35 -4- LSB 5612HH (4) 85 jm/nh 4/ 7

H.F. 2050 restitution. Upon the entry of the civil judgment, the portion 1 of the restitution payable to the insurer shall be considered 2 paid in full for purposes of the criminal case. 3 Sec. 7. Section 915.92, Code 2014, is amended to read as 4 follows: 5 915.92 Right of action against perpetrator —— subrogation. 6 1. A right of legal action by the victim against a person 7 who has committed a crime is not lost as a consequence of 8 a person receiving compensation under the crime victim 9 compensation program. If a person receiving compensation 10 under the program seeks indemnification which would reduce the 11 compensation under section 915.87, subsection 1 , the department 12 is subrogated to the recovery to the extent of payments by the 13 department to or on behalf of the person. The department has 14 a right of legal action against a person who has committed a 15 crime resulting in payment of compensation by the department to 16 the extent of the compensation payment. However, legal action 17 by the department does not affect the right of a person to seek 18 further relief in other legal actions. 19 2. In case of recovery, the court shall enter judgment for 20 distribution of the proceeds as follows: 21 a. A sum sufficient to repay any payments actually paid by 22 the victim compensation fund. 23 b. A sum sufficient to repay the victim for the damages 24 incurred as a result of the crime. 25 c. The balance, if any, shall be paid to the clerk of the 26 district court and distributed according to any remaining 27 balances that remain in the restitution plan. 28 Sec. 8. IMPLEMENTATION OF ACT. Section 25B.2, subsection 29 3, shall not apply to this Act. 30 EXPLANATION 31 The inclusion of this explanation does not constitute agreement with 32 the explanation’s substance by the members of the general assembly. 33 This bill relates to restitution to insurers in criminal 34 cases. 35 -5- LSB 5612HH (4) 85 jm/nh 5/ 7

H.F. 2050 The bill changes the definition of “pecuniary damages” in 1 regard to restitution to be paid in a criminal case to include 2 compensation paid to a victim by insurer. 3 The bill defines “insurer” for purposes of restitution in 4 a criminal case to mean an insurance company governed by the 5 provisions of Code chapter 515, 518, or 518A, or a bonding 6 company authorized by the commissioner of insurance. 7 The bill specifies that if a victim of a crime has received 8 compensation from an insurer, the court shall order restitution 9 to be paid to the source of such compensation in an amount 10 which the source of such payments could recover against the 11 offender in a civil action. 12 When structuring the priority of payments in a restitution 13 plan under Code section 910.2(1), the bill specifies that an 14 insurer be paid after the victim, governmental agencies, and 15 organizations are paid. 16 If an offender has fulfilled all of the conditions of 17 probation or parole, except for payment to an insurer under 18 the plan of restitution, or the sentence has expired and the 19 insurer remains unpaid under the plan of restitution, the bill 20 requires that the court enter a civil judgment against the 21 offender in favor of the insurer for any amount of restitution 22 remaining unpaid. Upon entry of the civil judgment under the 23 bill, the portion of the restitution payable to the insurer 24 shall be considered paid in full for purposes of the criminal 25 case but not for any future civil proceeding. 26 Under current law, damages paid by an insurer are 27 specifically excluded from the definition of “pecuniary 28 damages” and are not included in the restitution plan in a 29 criminal case. 30 The bill does not modify the right of an insurer to seek 31 reimbursement from the perpetrator of a crime through a right 32 of subrogation in the insurance policy or contract between the 33 insurer and the victim. 34 The bill may include a state mandate as defined in Code 35 -6- LSB 5612HH (4) 85 jm/nh 6/ 7