BILL REQ. #:  H-1455.1 

Read first time 02/07/11.   Referred to Committee on Judiciary.

     AN ACT Relating to legal financial obligations; amending RCW 10.82.090; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds that it is in the interest of the public to reduce recidivism and to promote the reintegration into society of individuals convicted of crimes. Research indicates that legal financial obligations may constitute a significant barrier to successful reintegration and may result in increases in recidivism. The legislature further recognizes that the accrual of interest on nonrestitution debt during the term of incarceration results in many individuals leaving prison with insurmountable debt. These circumstances make it less likely that restitution will be paid in full and more likely that former offenders and their families will remain in poverty. In order to foster reintegration and reduce recidivism, this act creates a mechanism for courts to eliminate interest accrued on nonrestitution debt during incarceration and improves incentives for payment of legal financial obligations.

Sec. 2   RCW 10.82.090 and 2009 c 479 s 14 are each amended to read as follows:
     (1) Except as provided in subsection (2) of this section, financial obligations imposed in a judgment shall bear interest from the date of the judgment until payment, at the rate applicable to civil judgments. All nonrestitution interest retained by the court shall be split twenty-five percent to the state treasurer for deposit in the state general fund, twenty-five percent to the state treasurer for deposit in the judicial information system account as provided in RCW 2.68.020, twenty-five percent to the county current expense fund, and twenty-five percent to the county current expense fund to fund local courts.
     (2) The court may, on motion by the offender, following the offender's release from total confinement, reduce or waive the interest on legal financial obligations levied as a result of a criminal conviction((.)) as follows:
     (a) The court shall waive all interest on the portions of the legal financial obligations that are not restitution that is accrued during the term of total confinement, provided the offender shows that the interest creates a hardship for the offender or his or her immediate family;
     (b) The court may reduce interest on the restitution portion of the legal financial obligations only if the principal has been paid in full;
     (c) The court may reduce or waive the interest ((only as an incentive for the offender to meet his or her)) on all other legal financial obligations not otherwise addressed in (a) and (b) of this subsection. ((The court may not waive the interest on the restitution portion of the legal financial obligation and may only reduce the interest on the restitution portion of the legal financial obligation if the principal of the restitution has been paid in full.)) The offender must show that he or she has personally made a good faith effort to pay, that the interest accrual is causing a significant hardship, and that he or she will be unable to pay the principal and interest in full and that reduction or waiver of the interest will likely enable the offender to pay the full principal and any remaining interest thereon. For purposes of this section, "good faith effort" means that the offender has either (((a))) (i) paid the principal amount in full; or (((b))) (ii) made ((twenty-four consecutive)) at least fifteen monthly payments within an eighteen-month period, excluding any payments mandatorily deducted by the department of corrections, on his or her legal financial obligations under his or her payment agreement with the court;
     (d) For purposes of (a) through (c) of this subsection, the court may reduce or waive interest on legal financial obligations only as an incentive for the offender to meet his or her legal financial obligations. The court may grant the motion, establish a payment schedule, and retain jurisdiction over the offender for purposes of reviewing and revising the reduction or waiver of interest.
     (3) This section applies to persons convicted as adults or adjudicated delinquents in juvenile court.