HB 1783, sponsored by Rep. Jeff Holy (R-Cheney) and introduced last session, changes how legal financial obligations (LFOs) are imposed on a convicted defendant. When a defendant is convicted of a crime, the court may impose LFOs as part of the judgment and sentence. LFOs include victim restitution, crime victims’ compensation fees, costs associated with the offender’s prosecution and sentence, fines, penalties, and assessments.
The bill does the following:
LFO Interest: Interest accrual on the non-restitution portion of an offender’s LFOs is eliminated as of the effective date of the act. Standards for the reduction or waiver of interest on LFOs are also revised. Upon motion of the offender, the court must waive interest on the non-restitution portion of the LFOs that accrued prior to the effective date of the act.
Imposition and collection of LFOs: A court may not impose costs on an offender who is indigent at the time of sentencing, or appellate costs on an offender who is indigent at the time of the request for appellate costs. An offender who is not in willful default in the payment of costs may request the court to convert unpaid costs to community restitution hours at the rate of the minimum wage, if payment of the amount due will result in manifest hardship to the defendant. If the court finds that the defendant is indigent, the court must grant permission for payment of LFOs to be made within a specified period of time or in specified installments.
Priority of payment: An offender’s LFO payment must be applied in the following order:
- First, proportionally to restitution to victims that have not been fully compensated from other resources;
- Second, proportionally to restitution to insurance or other sources with respect to a loss that has provided compensation to victims;
- Third, proportionally to crime victims’ assessment; and
- Fourth, proportionally to costs, fines, and other assessments.
The requirement that costs of incarceration be paid last after all other LFOs are satisfied is removed. The priority of payment applies to cases in all lower courts.
Enforcement of LFOs: An offender cannot be sanctioned for failure to pay LFOs unless the failure to pay is willful. Willful failure does not arise if the offender is indigent, homeless, or mentally ill. When determining an offender’s ability to pay or whether to sanction an offender for failure to pay, the court must consider factors set forth in the bill.
Nothing in the act requires the courts to refund or reimburse amounts previously paid toward LFOs or interest on LFOs.
HB 1783 passed out of the Senate Law & Justice Committee and was referred to Senate Ways & Means. The bill has until February 26 to pass out of that committee.