H.F. 608 Section 1. Section 602.8107, subsection 2, paragraph c, 1 subparagraph (1), Code 2013, 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 2013, 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, subsections 3, 4, and 5, Code 2013, 9 are amended to read as follows: 10 3. “Pecuniary damages” means all damages to the extent not 11 paid by an insurer, which a victim could recover against the 12 offender in a civil action arising out of the same facts or 13 event, except punitive damages and damages for pain, suffering, 14 mental anguish, and loss of consortium. Without limitation, 15 “pecuniary damages” includes damages for wrongful death and 16 expenses incurred for psychiatric or psychological services 17 or counseling or other counseling for the victim which became 18 necessary as a direct result of the criminal activity. 19 4. “Restitution” means payment of pecuniary damages to 20 a victim in an amount and in the manner provided by the 21 offender’s plan of restitution. “Restitution” also includes 22 fines, penalties, and surcharges, the contribution of funds to 23 a local anticrime organization which provided assistance to law 24 enforcement in an offender’s case, the payment of crime victim 25 compensation program reimbursements, payment of restitution 26 to public agencies pursuant to section 321J.2, subsection 27 13 , paragraph “b” , court costs including correctional fees 28 approved pursuant to section 356.7 , court-appointed attorney 29 fees ordered pursuant to section 815.9 , including the expense 30 of a public defender, and the performance of a public service 31 by an offender in an amount set by the court when the offender 32 cannot reasonably pay all or part of the court costs including 33 correctional fees approved pursuant to section 356.7 , or 34 court-appointed attorney fees ordered pursuant to section 35 -1- LSB 1575HV (4) 85 jm/nh 1/ 5

H.F. 608 815.9 , including the expense of a public defender, and payment 1 to the medical assistance program pursuant to chapter 249A for 2 expenditures paid on behalf of the victim resulting from the 3 offender’s criminal activities including investigative costs 4 incurred by the Medicaid fraud control unit pursuant to section 5 249A.7 . If a victim has received compensation from an insurer, 6 the court shall order restitution to be paid to the source of 7 such payments to the extent of such payments, subject to the 8 priority of payment provisions in the restitution plan under 9 section 910.2. 10 5. “Victim” means a person who has suffered pecuniary 11 damages as a result of the offender’s criminal activities. 12 However, for purposes of this chapter , an insurer is not a 13 victim and does not have a right of subrogation except as 14 provided in the insurance policy or contract. However, the 15 insurer has the right to be included in any restitution plan . 16 The crime victim compensation program is not an insurer for 17 purposes of this chapter , and the right of subrogation provided 18 by section 915.92 does not prohibit restitution to the crime 19 victim compensation program. 20 Sec. 4. Section 910.2, Code 2013, is amended to read as 21 follows: 22 910.2 Restitution or community service to be ordered by 23 sentencing court. 24 1. In all criminal cases in which there is a plea of guilty, 25 verdict of guilty, or special verdict upon which a judgment 26 of conviction is rendered, the sentencing court shall order 27 that restitution be made by each offender to the victims of 28 the offender’s criminal activities, to the clerk of court for 29 fines, penalties, surcharges, and, to the extent that the 30 offender is reasonably able to pay, for crime victim assistance 31 reimbursement, restitution to public agencies pursuant to 32 section 321J.2, subsection 13 , paragraph “b” , court costs 33 including correctional fees approved pursuant to section 34 356.7 , court-appointed attorney fees ordered pursuant to 35 -2- LSB 1575HV (4) 85 jm/nh 2/ 5

H.F. 608 section 815.9 , including the expense of a public defender, when 1 applicable, contribution to a local anticrime organization, 2 or restitution to the medical assistance program pursuant 3 to chapter 249A , or restitution to an insurer . However, 4 victims shall be paid in full before fines, penalties, and 5 surcharges, crime victim compensation program reimbursement, 6 public agencies, court costs including correctional fees 7 approved pursuant to section 356.7 , court-appointed attorney 8 fees ordered pursuant to section 815.9 , including the expenses 9 of a public defender, contributions to a local anticrime 10 organization, or the medical assistance program , or an 11 insurer are paid. In structuring a plan of restitution, the 12 court shall provide for payments in the following order of 13 priority: victim, fines, penalties, and surcharges, crime 14 victim compensation program reimbursement, public agencies, 15 court costs including correctional fees approved pursuant to 16 section 356.7 , court-appointed attorney fees ordered pursuant 17 to section 815.9 , including the expense of a public defender, 18 contribution to a local anticrime organization, and the medical 19 assistance program , and an insurer . 20 2. When the offender is not reasonably able to pay all or a 21 part of the crime victim compensation program reimbursement, 22 public agency restitution, court costs including correctional 23 fees approved pursuant to section 356.7 , court-appointed 24 attorney fees ordered pursuant to section 815.9 , including the 25 expense of a public defender, contribution to a local anticrime 26 organization, or medical assistance program restitution, 27 or insurer restitution, the court may require the offender 28 in lieu of that portion of the crime victim compensation 29 program reimbursement, public agency restitution, court costs 30 including correctional fees approved pursuant to section 31 356.7 , court-appointed attorney fees ordered pursuant to 32 section 815.9 , including the expense of a public defender, 33 contribution to a local anticrime organization, or medical 34 assistance program restitution , or insurer restitution for 35 -3- LSB 1575HV (4) 85 jm/nh 3/ 5

H.F. 608 which the offender is not reasonably able to pay, to perform 1 a needed public service for a governmental agency or for a 2 private nonprofit agency which provides a service to the youth, 3 elderly, or poor of the community. When community service is 4 ordered, the court shall set a specific number of hours of 5 service to be performed by the offender which, for payment 6 of court-appointed attorney fees ordered pursuant to section 7 815.9 , including the expenses of a public defender, shall be 8 approximately equivalent in value to those costs. The judicial 9 district department of correctional services shall provide for 10 the assignment of the offender to a public agency or private 11 nonprofit agency to perform the required service. 12 Sec. 5. Section 915.92, Code 2013, is amended to read as 13 follows: 14 915.92 Right of action against perpetrator —— subrogation. 15 1. A right of legal action by the victim against a person 16 who has committed a crime is not lost as a consequence of 17 a person receiving compensation under the crime victim 18 compensation program. If a person receiving compensation 19 under the program seeks indemnification which would reduce the 20 compensation under section 915.87, subsection 1 , the department 21 is subrogated to the recovery to the extent of payments by the 22 department to or on behalf of the person. The department has 23 a right of legal action against a person who has committed a 24 crime resulting in payment of compensation by the department to 25 the extent of the compensation payment. However, legal action 26 by the department does not affect the right of a person to seek 27 further relief in other legal actions. 28 2. In case of recovery, the court shall enter judgment for 29 distribution of the proceeds as follows: 30 a. A sum sufficient to repay any payments actually paid by 31 the victim compensation fund. 32 b. A sum sufficient to repay the victim for the damages 33 incurred as a result of the crime. 34 c. The balance, if any, shall be paid to the clerk of the 35 -4- LSB 1575HV (4) 85 jm/nh 4/ 5

H.F. 608 district court and distributed according to any remaining 1 balances that remain in the restitution plan. 2 Sec. 6. IMPLEMENTATION OF ACT. Section 25B.2, subsection 3 3, shall not apply to this Act. 4 EXPLANATION 5 This bill permits an insurer to be part of a plan of 6 restitution in a criminal case. 7 The bill changes the definition of “pecuniary damages” in 8 regard to restitution to be paid in a criminal case to include 9 compensation paid to a victim by insurer. 10 The bill specifies that if a victim of a crime has received 11 compensation from an insurer, the court shall order restitution 12 to be paid to the source of such compensation. 13 When structuring the priority of payments in a restitution 14 plan under Code section 910.2(1), the bill specifies that an 15 insurer be paid after the victim, governmental agencies, and 16 organizations are paid. 17 Under current law, damages paid by an insurer are 18 specifically excluded from the definition of “pecuniary 19 damages” and are not included in the restitution plan in a 20 criminal case. 21 The bill does not modify the right of an insurer to seek 22 reimbursement from the perpetrator of a crime through a right 23 of subrogation in the insurance policy or contract between the 24 insurer and the victim. 25 The bill may include a state mandate as defined in Code 26 section 25B.3. The bill makes inapplicable Code section 25B.2, 27 subsection 3, which would relieve a political subdivision from 28 complying with a state mandate if funding for the cost of 29 the state mandate is not provided or specified. Therefore, 30 political subdivisions are required to comply with any state 31 mandate included in the bill. 32 -5- LSB 1575HV (4) 85 jm/nh 5/ 5