Legal Financial Obligations.
When an adult is convicted of a crime, the court may impose legal financial obligations (LFOs) as part of the judgment and sentence.  Legal financial obligations include:  victim restitution, crime victims' compensation fees, costs associated with the offender's prosecution and sentence, criminal offense fines, and other fees, penalties, and assessments.

Costs.

Courts in criminal cases may impose a variety of costs against the defendant.  These include public defense costs, jury demand fees, criminal filing fees, bench warrant fees, deferred prosecution and pretrial supervision fees, incarceration costs, and other costs as ordered by the court.  A court may not impose costs on a defendant who is indigent at the time of sentencing. 

Court-Appointed Counsel.  A defendant who is indigent may be required to contribute to the costs of court-appointed counsel where funds available to the defendant are sufficient to pay a portion of that cost.  A defendant who is indigent and able to contribute must execute a promissory note and a sworn affidavit that all income and assets have been reported and that the person will report any change in financial status to the court.  

Criminal Filing Fee.  Upon conviction or plea of guilty, a defendant in superior court is liable for a fee of $200, and a defendant in a court of limited jurisdiction is liable for a fee of $43.  These fees may not be imposed on a defendant who is indigent at the time of sentencing.  The court may waive any previously imposed criminal filing fee if the court finds the defendant is indigent.

Jury Demand Fee.  A defendant convicted of an offense in superior court may be assessed a jury demand fee of $125 for a jury of six, or $250 for a jury of 12.

Costs of Incarceration.  A court may require an offender to pay costs of incarceration unless the offender is indigent at the time of sentencing.  Costs of incarceration may not exceed $50 per day of incarceration in a prison, and the actual cost of incarceration, not to exceed $100 per day, if incarcerated in a county jail.

Jail Booking Fee.  Local correctional agencies may require each person booked at a city, county, or regional jail to pay a fee based on the jail's actual booking costs, or $100, whichever is less.  

 Other Costs.  Other costs that may be imposed by a court include:

• costs of administering a deferred prosecution, not to exceed $250;
• costs of administering pretrial supervision, not to exceed $150;
• monthly assessment of up to $100 for misdemeanant probation services;
• monthly assessment for participation in a work crew of at least $10 per month but no more than $50 per month, and costs of required urinalysis or breathalyzer monitoring;
• electronic monitoring required as a condition of probation or release from custody; and 
• appellate costs. 

Restitution.

Restitution is a sum ordered by the sentencing court to be paid by the offender as payment for a victim's damages.  A sentencing court must order restitution whenever a victim of the crime is entitled to crime victims' compensation benefits.  In addition, a court must order restitution when the offender is convicted of an offense that results in personal injury or property damage, unless extraordinary circumstances exist that make restitution inappropriate.  In ordering restitution, the court must consider the total amount of restitution owed, the offender's present, past, and future ability to pay, and any assets the offender may have. 

A court may refrain from imposing, or relieve an offender of the requirement to pay, full or partial restitution and accrued interest to any insurer or state agency, except restitution owed to the Department of Labor and Industries under the Crime Victim Compensation Program, if the court finds the offender does not have the current or likely future ability to pay.  A person does not have the current ability to pay if the person is indigent.

Interest on Restitution. 

Restitution imposed in a judgment bears interest from the date of judgment until payment at the rate applicable to civil judgments, which is currently 12 percent.  The court may elect not to impose interest on restitution after considering the following factors:

• whether the offender is indigent under statutory standards for appointment of counsel or under General Rule 24 of the court rules;
• the offender's available funds and liabilities, including child support and other LFOs; and
• whether the offender is homeless or mentally ill.

The court must consider input from the victim as to hardship caused to the victim if interest on restitution is not imposed, and may consider other information the court believes, in the interest of justice, relates to the determination of whether or not to impose interest on restitution.

Upon motion, a court may waive any interest imposed on restitution if the restitution principal has been paid in full.  After an offender's release from total confinement, the court may waive or reduce interest on restitution that accrued during incarceration if the offender does not have the current or likely future ability to pay.  The prosecutor must make reasonable efforts to notify the victim of the hearing, and the court must consider any input from a victim on the impact of waiving restitution interest.

Under legislation enacted in 2018, interest does not accrue on nonrestitution LFOs as of June 7, 2018.  Upon motion of an offender, the court must waive all interest on nonrestitution LFOs that accrued prior to June 7, 2018.

A court may not impose costs on a defendant except as specifically authorized by statute.  Language generally authorizing courts to impose costs, and references to specific types of costs that may be imposed, are deleted.  "Costs" are defined as any amount imposed for the costs associated with a defendant's arrest, prosecution, detention, or supervision in connection with a criminal offense.  The definition of "indigent" for purposes of determining whether LFOs may be imposed or waived is revised to include a person with income at or below 200 percent of the federal poverty level.   

Provisions that allow a court to impose the following costs, fees, or assessments are eliminated or repealed:

• criminal filing fee imposed upon conviction or guilty plea;
• jury demand fee;
• costs of court-appointed counsel for defendants who are indigent and able to contribute;
• jail booking fee and costs of incarceration;
• costs of appeal imposed by the superior courts, Court of Appeals, and Supreme Court;
• costs of electronic monitoring required as a condition of probation or release from custody;
• costs for administering a deferred prosecution program;
• monthly assessment for misdemeanant probation services;
• monthly assessment for participation in a work crew and costs of urinalysis or breathalyzer monitoring; and
• costs related to accepting credit card payments for LFOs. 

Restitution.

A court must, rather than may, refrain from imposing, or relieve an offender of the requirement to pay, full or partial restitution and accrued interest to any insurer or state agency, if the court finds the offender does not have the current ability to pay.

The statute that provides for accrual of interest on restitution imposed in a judgment, and that addresses standards for waiver of accrued interest on LFOs, is repealed.

Future Ability to Pay.

An offender's future ability to pay is removed from consideration when the court:  determines whether to waive or not impose restitution owed to an insurer or state agency based on ability to pay; sets the minimum monthly restitution payment amount; and determines whether the time period for enforcing the LFO judgment should be extended for an additional 10 years.

Unenforceable Debts for Costs, Fees, and Interest.

A previously imposed judgment against an offender for any costs, fees, and interest on restitution or other LFOs eliminated or repealed by the act is not enforceable.  The court must not accept payments for such costs, fees, or accrued interest on restitution or other LFOs after the effective date of the act.  Such debts are considered null and void and satisfied and paid in full.  A clerk or court administrator is not required to take any action or alter any record except by judicial order.

Upon motion, the court must waive all uncollectible portions of the offender's LFOs.  The presiding judge of a superior court or court of limited jurisdiction may establish an administrative process to waive outstanding debt for uncollectible LFOs other than restitution.  A clerk or court administrator may seek a judicial order to waive uncollectible outstanding debt for costs and fees, other than restitution, and for accrued interest on LFOs.  A motion filed by a clerk or court administrator seeking to waive these debts does not constitute the practice of law.