ORDINANCE NO. ___________

AN ORDINANCE of the City/Town of ___________, Tennessee providing for the authorization and use of a collection agency to collect unpaid fines, court costs, fees and applicable taxes owed to the town from cases adjudicated in ________City/Town Court.

WHEREAS Tennessee Code Annotated § 40-24-105(e) authorizes municipalities to employ the services of a collection agency to collect unpaid fines, court costs, fees, and taxes; and,

WHEREAS such collection agency shall only collect fines which are more than 60 days overdue; and,

WHEREAS the City/Town shall have a written contract with the collection agency which shall conform to provisions set forth in Tennessee Code Annotated § 40-24-105(e);

NOW, THEREFORE BE IT ORDAINED BY THE CITY/TOWN OF _________ TENNESSEE AS FOLLOWS:

Section 1. Pursuant to T.C.A. § 40-24-105(e), a collection agency may be employed to collect fines, court costs, and applicable litigation taxes assessed by the town court where the fines and costs have not been collected within 60 days after they were due. Employment of a collection agency for this purpose shall be pursuant to a written contract.

Section 2. The collection agency may be paid an amount not exceeding 40 percent of the total sums collected as consideration for collecting the fines, court costs, and applicable litigation taxes.

Section 3. The written contract between the collection agency and the city shall include a provision specifying whether the agency may institute an action to collect fines, court costs, and applicable litigation taxes in a judicial proceeding.

Section 4. In compliance with T.C.A. § 40-24-105(e)(4), the collection agency contracted under this provision will not attempt to collect any unpaid parking tickets in violation of T.C.A. § 6-54-513.

Section 5. Date of effect. This ordinance shall take effect from and after its final passage, the public welfare requiring it.

 Approved on First Reading _________________

Approved on Second Reading _______________