Legislative Updates

Court Fee Intercept Bill Update
We are pleased to report that our court fee intercept bill was introduced in the House of Representatives on June 3, 2008 (HR 6172).
The introduction of this bill was a bipartisan success as Rep Ron Kind (D-WI) and Rep. Jim Ramstad (R-MN) were joined by seven other Democrats and Republicans in introducing the bill.

We will now seek to enlist as many Members of Congress to co-sponsor this measure in order to build a strong base of support. As you recall, our bill was first introduced in the Senate last year (S. 1287). We have a short window of opportunity to get this measure approved as the November elections approach.

Thus, we are hoping that you reach out to your congressional representatives and ASK THEM TO CO-SPONSOR HR 6172 IN THE HOUSE OF REPRESENTATIVES, AND S. 1287 IN THE SENATE. Having large co-sponsorship counts for both bills will show that these measures enjoy widespread support and deserve quick action in the Congress. The telephone switchboard for the U.S. Capitol is (202) 224-3121. You can also contact your representatives at your local or district offices.

Thank you for all your work on this important issue. Let me know if you have any questions or comment.

Update provided by:

José Dimas
National Center for State Courts

Court Fee Intercept Bill Introduced in the Senate

By Jose Dimas
One of the most difficult tasks the modern-day court manager faces is trying to collect the hundreds or even thousands of dollars in unpaid court fees, fines and other debt owed to courts.  

Court managers have utilized a variety of methods in their efforts to collect and settle outstanding court debt.  Some of these methods include: issuing summons, notices, making phone calls, and even contracting with collection agencies to recover some of this unpaid court debt.

Now, a tool may soon be available to help them in this endeavor.  On June 15, Senators Gordon Smith (R-OR) and Charles Schumer (D-NY) introduced S. 3512, the Court Fee Intercept legislation.  This bill would allow for the interception of federal tax refunds to pay for unpaid court fees, fines and restitution owed to courts.

“Financially-strapped courts need a way to collect on debts that are rightly due to a crime victim or to the court,” stated Senator Smith when introducing the legislation.  “Intercepting tax refunds is an efficient way to collect money that criminals owe.  The influx of funding will go to victims, help courts enforce court orders, and create revenue that could be returned to a state’s treasury.” 

Oregon Chief Justice J. Paul DeMuniz added, “This will increase the enforcement of court orders, and by doing so, increase the collections of court ordered fines, fees and victim restitution.  This bill helps enforce our system of justice and ensure that defendants meet their obligations.”

SCOPE OF THE PROBLEM
As courts are faced with ever-increasing budget tightening measures, some court officials have increased the attention in trying to collect the millions owed to them.  Estimates on unpaid court debt are difficult to gauge, but most agree that an average state is owed millions of dollars in unpaid court debt. 

Oregon, for example, reported that it had $439 million in delinquent fines, fees, surcharges and restitution in FY 2004.  Virginia reported $386 million in court costs and fines only.  Many states already intercept state tax refunds to pay for unpaid court debt.  In 2002, Arizona intercepted $2.3 million to pay delinquent fines, surcharges and restitution from state tax refunds.

THE PROGRAM
This court fee intercept program would be patterned after the successful federal tax intercept/offset program, which collects unpaid child support debt.  The name of the federal program is the U.S. Treasury Offset Program (TOP).  The list of allowable TOP intercepts are:  1) Federal Tax Debt 2) Temporary Assistance for Needy Family (TANF) child support debt 3) Federal Agency Non-tax debt 4) Non-TANF child support debt and 5) state tax debt (other than Child Support). 

Under the legislation, an additional sixth category would be added to the list of allowable interception categories for unpaid court debt.  The unpaid court debt would not supplant or supersede any of the current categories including the unpaid child support enforcement categories, in order of priority.  Finally, it would be optional for a state to participate in the federal tax intercept program for unpaid court debt.

ACTION REQUESTED
We are working to increase co-sponsors to this important legislation.  We are asking members of the court community to contact their Senator and ask them to co-sponsor S. 3512.  Key points to mention in your communications with your Senator:

• These interceptions are on refunds that would otherwise be returned to a taxpayer.  As such, there is no loss to the Federal budget.  The proposal is “revenue neutral” in terms of costs to the Federal treasury.
• Court-owed debts would be last in line after child support interception and other current debt priorities, and would not affect other recipients now already intercepting refunds.
• This tax intercept proposal would be a revenue generating instrument that is not a tax increase.
• Enactment of this law would alleviate or lessen the budget problems faced by many courts.
• The mechanisms are already in place to establish this program.  There would be no need to install new, expensive protocols to implement this proposal.
• Payment of unpaid court debt would promote the public trust and confidence in the nation’s judicial system.

This legislation has the support of a broad-based coalition including:  the Conference of Chief Justices, Conference of State Court Administrators, National Association for Court Management, National Conference of State Legislatures, National Association of Counties, Government Finance Officers Association, and the American Probation and Parole Association. 

The bill has been referred to the Senate Finance Committee.