[Congressional Record Volume 143, Number 40 (Tuesday, April 8, 1997)]
[Senate]
[Pages S2838-S2841]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ABRAHAM:

  S. 518. A bill to control crime by requiring mandatory victim 
restitution; to the Committee on the Judiciary.


                 THE VICTIM RESTITUTION ENFORCEMENT ACT

  Mr. ABRAHAM. Mr. President, I rise today to introduce the Victim 
Restitution Enforcement Act of 1997. I have long supported restitution 
for crime victims, and have long been convinced that justice requires 
us to devise effective mechanisms through which victims can enforce 
restitution orders and make criminals pay for their crimes.
  I was very pleased when we enacted mandatory victim restitution 
legislation last Congress as part of the Antiterrorism and Effective 
Death Penalty Act of 1996. I supported that legislation and very much 
appreciated the efforts of my colleagues, particularly Senators Hatch, 
Biden, Nickles, Grassley, and McCain, to ensure that victim restitution 
provisions were included in the antiterrorism legislation.
  Those victim restitution provisions--brought together as the 
Mandatory Victims Restitution Act of 1996--will significantly advance 
the cause of justice for victims in Federal criminal cases. The act 
requires Federal courts, when sentencing criminal defendants, to order 
these defendants to pay restitution to the victims of their crimes. It 
also establishes a single set of procedures for the issuance of 
restitution orders in Federal criminal cases to provide uniformity in 
the Federal system. Inclusion of mandatory victim restitution 
provisions in the Federal criminal code was long overdue, and I am 
pleased that Congress was able to accomplish that last year.
  However, much more remains to be done to ensure that victims can 
actually collect those restitution payments and to provide victims with 
effective means to pursue whatever restitution payments are owed to 
them. Even if a defendant may not have the resources to pay off a 
restitution order fully, victims should still be entitled to go after 
whatever resources a defendant does have and to collect whatever they 
can. We should not effectively tell victims that it is not worth going 
after whatever payments they might get. That is what could happen under 
the current system, in which victims have to rely on Government 
attorneys--who may be busy with many other matters--to pursue 
restitution payments. Instead, we should give victims themselves the 
tools they need so that they can get what is rightfully theirs.
  The victim restitution provisions enacted last Congress consolidated 
the procedures for the collection of unpaid restitution with existing 
procedures for the collection of unpaid fines. Unless more steps are 
taken to make enforcement of restitution orders more effective for 
victims, we risk allowing mandatory restitution to be mandatory in name 
only, with criminals able to evade ever paying their restitution and 
victims left without the ability to take action to enforce restitution 
orders.
  Last Congress, I introduced the Victim Restitution Enforcement Act of 
1995. Many components of my legislation were also included in the 
victim restitution legislation enacted as part of the Antiterrorism and 
Effective Death Penalty Act. The legislation I introduce today is 
similar to the legislation I introduced last Congress as Senate bill 
1504, and is designed to build on what are now current provisions of 
law. All in all, I hope to ensure that restitution payments from 
criminals to victims become a reality, and that victims have a greater 
degree of control in going after criminals to obtain restitution 
payments.
  Under my legislation, restitution orders would be enforceable as a 
civil debt, payable immediately. Most restitution is now collected 
entirely through the criminal justice system. It is frequently paid as 
directed by the probation officer, which means restitution payments 
cannot begin until the prisoner is released. This bill makes 
restitution orders payable immediately, as a civil debt, speeding 
recovery and impeding attempts by criminals to avoid repayment. This 
provision will not impose criminal penalties on those unable to pay, 
but will simply allow civil collection against those who have assets.
  This will provide victims with new means of collecting restitution 
payments. If the debt is payable immediately, all normal civil 
collection procedures, including the Federal Debt Collection Act, can 
be used to collect the debt. The bill explicitly gives victims access 
to other civil procedures already in place for the collection of debts. 
This lightens the burden of collecting debt on our Federal courts and 
prosecutors.
  My bill further provides that Federal courts will continue to have 
jurisdiction over criminal restitution judgments for 5 years, not 
including time that the defendant is incarcerated. The court is 
presently permitted to resentence or take several other actions against 
a criminal who willfully refuses to make restitution payments; the 
court may do so until the termination of the term of parole. Courts 
should have the ability to do more over a longer period of time, and to 
select those means that are more likely to prove successful. Under my 
bill, during the extended period, Federal courts will be permitted, 
where the defendant knowingly fails to make restitution payments, to 
modify the terms or conditions of a defendant's parole, extend the 
defendant's probation or supervised release, hold the defendant in 
contempt, increase the defendant's original sentence, or revoke 
probation or supervised release.
  My legislation will also give the courts power to impose presentence 
restraints on defendants' uses of their assets in appropriate cases. 
This will prevent well-heeled defendants from dissipating assets prior 
to sentencing. Without such provisions, mandatory victim restitution 
provisions may well be useless in many cases. Even in those rare cases 
in which a defendant has the means to pay full restitution at once, if 
the court has no capacity to prevent the defendant from spending ill-
gotten gains or other assets prior to the sentencing phase, there may 
be nothing left for the victim by the time the restitution order is 
entered.
  The provisions permitting presentence restraints are similar to other 
provisions that already exist in the law for private civil actions and 
asset forfeiture cases, and they provide adequate protections for 
defendants. They require a court hearing, for example, and place the 
burden on the Government to show by a preponderance of the evidence 
that presentence restraints are warranted.
  In short, I want to make criminals pay and to give victims the tools 
with which to make them pay. In enacting mandatory victim restitution 
legislation last Congress, we demonstrated our willingness to make some 
crimes subject to this process. I believe we must take additional steps 
to make those mandatorily issued orders easily enforceable.
  This legislation is supported by the National Victim Center and by 
the Michigan Coalition Against Domestic and Sexual Violence. I ask 
unanimous consent to have placed in the Record letters of support from 
those victims' rights organizations.
  I urge my colleagues to support my legislation, which will empower 
victims to collect on the debts that they

[[Page S2839]]

are owed by criminals and which will improve the enforceability of 
restitution orders.
  I also ask unanimous consent that the text of the bill be placed in 
the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 518

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Victim Restitution 
     Enforcement Act''.

     SEC. 2. PROCEDURE FOR ISSUANCE AND ENFORCEMENT OF RESTITUTION 
                   ORDER.

       Section 3664 of title 18, United States Code, is amended to 
     read as follows:

     ``Sec. 3664. Procedure for issuance and enforcement of order 
       of restitution

       ``(a) In General.--
       ``(1) Reliance on information in presentence report.--With 
     respect to each order of restitution under this title, the 
     court shall order the probation service of the court to 
     obtain and include in its presentence report, or in a 
     separate report, as the court directs, information sufficient 
     for the court to exercise its discretion in fashioning a 
     restitution order.
       ``(2) Contents of report.--Each report described in 
     paragraph (1) shall include, to the extent practicable, a 
     complete accounting of the losses to each victim, any 
     restitution owed pursuant to a plea agreement, and 
     information relating to the economic circumstances of each 
     defendant. If the number or identity of victims cannot be 
     reasonably ascertained, or other circumstances exist that 
     make this requirement clearly impracticable, the probation 
     service shall so inform the court.
       ``(b) Disclosures.--The court shall disclose to both the 
     defendant and the attorney for the Government all portions of 
     the presentence or other report pertaining to the matters 
     described in subsection (a).
       ``(c) Applicability of Other Law.--This chapter, chapter 
     227, and Rule 32(c) of the Federal Rules of Criminal 
     Procedure are the only laws and rules applicable to 
     proceedings under this section.
       ``(d) Ensuring Availability of Property or Assets.--
       ``(1) In general.--
       ``(A) Restraining order, injunction, execution of 
     performance bond.--Upon application of the United States, the 
     court may enter a restraining order or injunction, require 
     the execution of a satisfactory performance bond, or take any 
     other action to preserve the availability of property or 
     assets necessary to satisfy a criminal restitution order 
     under this subchapter. An order under this subparagraph may 
     be entered in the following circumstances:
       ``(i) Prior to the filing of an indictment or information 
     charging an offense that may result in a criminal restitution 
     order, and upon the United States showing that--

       ``(I) there is a substantial probability that the United 
     States will obtain a criminal restitution order;
       ``(II) the defendant has or is likely to take action to 
     dissipate or hide the property or assets of the defendant; 
     and
       ``(III) the need to preserve the availability of the 
     property or assets through the requested order outweighs the 
     hardship of any party against whom the order is entered.

       ``(ii) Upon the filing of an indictment or information 
     charging an offense that may result in a criminal restitution 
     order, and upon the United States showing that the defendant 
     has or is likely to take action to dissipate or hide the 
     property or assets of the defendant.
       ``(iii) Upon the conviction, or entry of a guilty plea, to 
     an indictment or information charging an offense that may 
     result in a criminal restitution order, and upon the United 
     States showing that the defendant may take action to 
     dissipate or hide the property or assets of the defendant or 
     that an order is necessary to marshal and determine the 
     property or assets of the defendant.
       ``(B) Period of effectiveness.--An order entered under 
     subparagraph (A) shall be effective for not more than 90 
     days, unless extended by the court for good cause shown or 
     unless an indictment or information described in subparagraph 
     (A)(ii) has been filed.
       ``(2) Notice of order.--
       ``(A) In general.--Except as provided in paragraph (3), an 
     order entered under this subsection shall be after notice to 
     persons appearing to have an interest in the property and 
     opportunity for a hearing, and upon the United States 
     carrying the burden of proof by a preponderance of the 
     evidence.
       ``(B) Admissible evidence.--The court may receive and 
     consider, at a hearing held under this subsection, evidence 
     and information that would be inadmissible under the Federal 
     Rules of Evidence.
       ``(3) Temporary restraining order.--
       ``(A) In general.--A temporary restraining order may be 
     entered without notice or opportunity for a hearing if the 
     United States demonstrates that--
       ``(i) there is probable cause to believe that the property 
     or assets with respect to which the order is sought would be 
     subject to execution upon the entry of a criminal restitution 
     order;
       ``(ii) there is a substantial probability that the United 
     States will obtain a criminal restitution order; and
       ``(iii) the provision of notice would jeopardize the 
     availability of the property or assets for execution.
       ``(B) Expiration of order.--A temporary order under this 
     paragraph shall expire not later than 10 days after the date 
     on which it is entered, unless--
       ``(i) the court grants an extension for good cause shown; 
     or
       ``(ii) the party against whom the order is entered consents 
     to an extension for a longer period.
       ``(C) Hearing.--A hearing requested concerning an order 
     entered under this paragraph shall be held at the earliest 
     possible time, and prior to the expiration of the temporary 
     order.
       ``(4) Disclosure of certain information.--
       ``(A) In general.--Information concerning the net worth, 
     financial affairs, transactions or interests of the defendant 
     presented to the grand jury may be disclosed to an attorney 
     for the Government assisting in the enforcement of criminal 
     restitution orders, for use in the performance of the duties 
     of that attorney.
       ``(B) Use of consumer credit reports.--
       ``(i) In general.--An attorney for the Government 
     responsible for the prosecution of criminal offenses, or 
     responsible for the enforcement of criminal restitution 
     orders, may obtain and use consumer credit reports to--

       ``(I) obtain an order under this section;
       ``(II) determine the amount of restitution that is 
     appropriate; or
       ``(III) enforce a criminal restitution order.

       ``(ii) Grand jury subpoena.--This subparagraph does not 
     limit the availability of grand jury subpoenas to obtain a 
     consumer credit report.
       ``(iii) Probation service.--Upon conviction, a consumer 
     credit report used under this subparagraph may be furnished 
     to the United States Probation Service.
       ``(e) Information to Probation Service.--
       ``(1) In general.--
       ``(A) Provision of information by government.--Not later 
     than 60 days after conviction, and in any event not later 
     than 10 days prior to sentencing, the attorney for the 
     Government after consulting with all victims (when 
     practicable), shall promptly provide the probation service of 
     the court all information readily available to the attorney, 
     including matters occurring before the grand jury relating to 
     the identity of the victim or victims, the amount of losses, 
     and financial matters relating to the defendant.
       ``(B) Provision of information by defendants.--Each 
     defendant shall prepare and file with the probation officer 
     an affidavit fully describing the financial resources of the 
     defendant, including a complete listing of all assets owned 
     or controlled by the defendant as of the date on which the 
     defendant was arrested, the financial needs and earning 
     ability of the defendant and the defendant's dependents, and 
     any other information that the court requires relating to 
     such other factors as the court determines to be appropriate.
       ``(C) Notice to victims.--The attorney for the Government 
     shall, to the maximum extent practicable and as soon as 
     practicable after the provision of information by the 
     Government to the probation service under subparagraph (A), 
     provide notice to all victims. The notice shall inform the 
     victims of--
       ``(i) the offenses for which the defendant was convicted;
       ``(ii) the amounts subject to restitution and any other 
     information that is relevant to restitution submitted to the 
     probation service;
       ``(iii) the right of the victim to submit information to 
     the probation service concerning the amount of the losses of 
     the victim;
       ``(iv) the scheduled date, time, and place of the 
     sentencing hearing;
       ``(v) the availability of a lien in favor of the victim 
     under subsection (n)(1)(D); and
       ``(vi) the opportunity of the victim to file a separate 
     affidavit with the court under subparagraph (E).
       ``(D) Limitations on information.--Upon ex parte 
     application to the court, and a showing that the requirements 
     of subparagraph (A) may cause harm to any victim, or 
     jeopardize an ongoing investigation, the court may limit the 
     information to be provided to or sought by the probation 
     service of the court.
       ``(E) Affidavit of objection.--If any victim objects to any 
     of the information provided to the probation service by the 
     attorney for the Government under this paragraph, the victim 
     may file a separate affidavit with the court.
       ``(2) Additional documentation or testimony.--After 
     reviewing the report of the probation service of the court, 
     the court may require additional documentation or hear 
     testimony. The privacy of any records filed, or testimony 
     heard, under this section shall be maintained to the greatest 
     extent possible and those records may be filed or testimony 
     heard in camera.
       ``(3) Additional time for determination of losses.--If the 
     losses to the victim are not ascertainable by the date that 
     is 10 days prior to sentencing as provided in paragraph (1), 
     the United States Attorney (or a designee of the United 
     States Attorney) shall so inform the court, and the court 
     shall set a date for the final determination of the losses of 
     the victim, not to exceed 90 days after sentencing. If the 
     losses to the victim cannot

[[Page S2840]]

     reasonably be ascertained, the court shall determine an 
     appropriate amount of restitution based on the available 
     information. If the victim subsequently discovers further 
     losses, the victim shall have 60 days after discovery of 
     those losses during which to petition the court for an 
     amended restitution order. The order may be granted only upon 
     a showing of good cause for the failure to include those 
     losses in the initial claim for restitutionary relief.
       ``(4) Referral to magistrate or special master.--The court 
     may refer any issue arising in connection with a proposed 
     order of restitution to a magistrate or special master for 
     proposed findings of fact and recommendations as to 
     disposition, subject to a de novo determination of the issue 
     by the court.
       ``(5) Insurance of victim not considered.--In no case shall 
     the fact that a victim has received or is entitled to receive 
     compensation with respect to a loss from insurance or any 
     other source be considered in determining the amount of 
     restitution.
       ``(f) Evidentiary Standard.--Any dispute as to the proper 
     amount or type of restitution shall be resolved by the court 
     by the preponderance of the evidence. The burden of 
     demonstrating the amount of the loss sustained by a victim as 
     a result of the offense shall be on the attorney for the 
     Government. The burden of demonstrating the financial 
     resources of the defendant and the financial needs of the 
     defendant and the dependents of the defendant shall be on the 
     defendant. The burden of demonstrating such other matters as 
     the court deems appropriate shall be upon the party 
     designated by the court as justice requires.
       ``(g) Factors for Consideration.--
       ``(1) In general.--
       ``(A) Economic circumstances of victim not considered.--In 
     each order of restitution, the court shall order restitution 
     to each victim in the full amount of the losses of each 
     victim as determined by the court and without consideration 
     of the economic circumstances of the defendant.
       ``(B) Award of reasonably ascertainable losses.--The court 
     shall order restitution in the amount of the total loss that 
     is reasonably ascertainable, if--
       ``(i) the number of victims is too great;
       ``(ii) the actual identity of the victims cannot be 
     ascertained; and
       ``(iii) or the full amount of the losses of each victim 
     cannot be reasonably ascertained;
       ``(2) Amount and timing of restitution.--The restitution 
     order shall be for a sum certain and payable immediately.
       ``(3) Nominal periodic payments.--If the court finds from 
     facts on the record that the economic circumstances of the 
     defendant do not allow and are not likely to allow the 
     defendant to make more than nominal payments under the 
     restitution order, the court shall direct the defendant to 
     make nominal periodic payments in the amount the defendant 
     can reasonably be expected to pay by making a diligent and 
     bona fide effort toward the restitution order entered under 
     paragraph (1). Nothing in the paragraph shall impair the 
     obligation of the defendant to make full restitution under 
     this subsection.
       ``(4) Status of debt.--Notwithstanding any payment schedule 
     entered by the court under paragraph (2), each order of 
     restitution shall be a civil debt, payable immediately, and 
     subject to the enforcement procedures provided in subsection 
     (n). In no event shall a defendant incur any criminal penalty 
     for failure to make a restitution payment under the 
     restitution order because of the indigency of the defendant.
       ``(h) Victim Rights.--
       ``(1) No participation required.--No victim shall be 
     required to participate in any phase of a restitution order. 
     If a victim declines to receive restitution made mandatory by 
     this title, the court shall order that the share of the 
     victim of any restitution owed be deposited in the Crime 
     Victims Fund in the Treasury.
       ``(2) Assignment of interest.--A victim may at any time 
     assign the interest of the victim in restitution payments to 
     the Crime Victims Fund in the Treasury without in any way 
     impairing the obligation of the defendant to make those 
     payments.
       ``(3) Victims not identified or located.--If the victim 
     cannot be located or identified, the court shall direct that 
     the restitution payments be made to the Crime Victims Fund of 
     the Treasury. This paragraph shall not be construed to impair 
     the obligation of the defendant to make those payments.
       ``(i) Joint and Several Liability of Multiple Defendants.--
     If the court finds that more than 1 defendant has contributed 
     to the loss of a victim, the court may make each defendant 
     jointly and severally liable for payment of the full amount 
     of restitution or may apportion liability among the 
     defendants to reflect the level of contribution to the loss 
     of the victim and economic circumstances of each defendant.
       ``(j) Priority of Payments.--If the court finds that more 
     than 1 victim has sustained a loss requiring restitution by a 
     defendant, the court may issue an order of priority for 
     restitution payments based on the type and amount of the loss 
     of the victim accounting for the economic circumstances of 
     each victim. In any case in which the United States is a 
     victim, the court shall ensure that all individual victims 
     receive full restitution before the United States receives 
     any restitution.
       ``(k) Insurance.--
       ``(1) In general.--If a victim has received or is entitled 
     to receive compensation with respect to a loss from insurance 
     or any other source, the court shall order that restitution 
     shall be paid to the person who provided or is obligated to 
     provide the compensation, but the restitution order shall 
     provide that all restitution of victims required by the order 
     be paid to the victims before any restitution is paid to any 
     such provider of compensation.
       ``(2) Reduction of amount.--Any amount paid to a victim 
     under an order of restitution shall be reduced by any amount 
     later recovered as compensatory damages for the same loss by 
     the victim in--
       ``(A) any Federal civil proceeding; and
       ``(B) any State civil proceeding, to the extent provided by 
     the law of the State.
       ``(3) Other resources.--If a person obligated to provide 
     restitution receives substantial resources from any source, 
     including inheritance, settlement, or other judgment, that 
     person shall be required to apply the value of those 
     resources to any restitution still owed.
       ``(l) Material Changes in Economic Status of Defendant.--
     The defendant shall notify the court and the Attorney General 
     of any material change in the economic circumstances of the 
     defendant that might affect the ability of the defendant to 
     pay restitution. Upon receipt of the notification, the court 
     may, on its own motion, or the motion of any party, including 
     the victim, adjust the payment schedule, or require immediate 
     payment in full, as the interests of justice require.
       ``(m) Jurisdiction of Court.--
       ``(1) In general.--The court shall retain jurisdiction over 
     any criminal restitution judgment or amended criminal 
     restitution judgment for a period of 5 years from the date 
     the sentence was imposed. This limitation shall be tolled 
     during any period of time that the defendant--
       ``(A) was incarcerated;
       ``(B) was a fugitive; or
       ``(C) was granted a stay that prevented the enforcement of 
     the restitution order.
       ``(2) Failure to pay.--While within the jurisdiction of the 
     court, if the defendant knowingly fails to make a bona fide 
     effort to pay whatever amount of restitution is ordered by 
     the court, or knowingly and willfully refuses to pay 
     restitution, the court may--
       ``(A) modify the terms or conditions of the probation or 
     supervised release of the defendant;
       ``(B) extend the probation or supervised release of the 
     defendant until a date not later than 10 years from the date 
     the sentence was imposed;
       ``(C) revoke the probation or supervised release of the 
     defendant;
       ``(D) hold the defendant in contempt; or
       ``(E) increase the sentence of the defendant to any 
     sentence that might originally have been imposed under the 
     applicable statute, without regard to the sentencing 
     guidelines.
       ``(n) Enforcement of Order of Restitution.--
       ``(1) In general.--An order of restitution may be 
     enforced--
       ``(A) through civil or administrative methods during the 
     period that the restitution lien provided for in section 3613 
     of title 18, United States Code, is enforceable;
       ``(B) by the United States in the manner provided for in 
     subchapter C of chapter 227 and subchapter B of chapter 229;
       ``(C) by the United States regardless of whether for the 
     benefit of the United States, in accordance with the 
     procedures of chapter 176 of part VI of title 28, or in 
     accordance with any other administrative or civil enforcement 
     means available to the United States to enforce a debt due 
     the United States; or
       ``(D) by any victim named in the restitution order as a 
     lien under section 1962 of title 28.
       ``(2) Estoppel.--A conviction of a defendant for an offense 
     giving rise to restitution under this section shall estop the 
     defendant from denying the essential allegations of that 
     offense in any subsequent Federal civil proceeding or State 
     civil proceeding, regardless of any State law precluding 
     estoppel for a lack of mutuality. The victim, in the 
     subsequent proceeding, shall not be precluded from 
     establishing a loss that is greater than the loss determined 
     by the court in the earlier criminal proceeding.''.

     SEC. 3. CIVIL REMEDIES.

       Section 3613 of title 18, United States Code, is amended--
       (1) in the section heading, by inserting ``or restitution'' 
     after ``fine''; and
       (2) in subsection (a)--
       (A) by striking ``The United States'' and inserting the 
     following:
       ``(1) Fines.--The United States'';
       (B) by redesignating paragraphs (1), (2), and (3) as 
     subparagraphs (A), (B), and (C), respectively, and indenting 
     accordingly; and
       (C) by adding at the end the following:
       ``(2) Restitution.--
       ``(A) In general.--
       ``(i) Lien.--An order of restitution shall operate as a 
     lien in favor of the United States for its benefit or for the 
     benefit of any non-Federal victims against all property 
     belonging to the defendant or defendants.
       ``(ii) Timing.--The lien shall arise at the time of the 
     entry of judgment or order and shall continue until the 
     liability is satisfied, remitted, or set aside, or until it 
     becomes otherwise unenforceable.
       ``(iii) Persons against whom lien applies.--The lien shall 
     apply against all property and property interests--

[[Page S2841]]

       ``(I) owned by the defendant or defendants at the time of 
     arrest; and
       ``(II) subsequently acquired by the defendant or 
     defendants.

       ``(B) Entry of lien.--The lien shall be entered in the name 
     of the United States on behalf of all ascertained victims, 
     unascertained victims, victims entitled to restitution who 
     choose not to participate in the restitution program and 
     victims entitled to restitution who cannot assert their 
     interests in the lien for any reason.
       ``(3) Jointly held property.--
       ``(A) In general.--
       ``(i) Division and sale of property.--If the court 
     enforcing an order of restitution under this section 
     determines that the defendant has an interest in property 
     with another, and that the defendant cannot satisfy the 
     restitution order from his or her separate property or 
     income, the court may, after considering all of the equities, 
     order that jointly owned property be divided and sold, upon 
     such conditions as the court deems just, notwithstanding any 
     Federal or State law to the contrary.
       ``(ii) Protection of innocent parties.--The court shall 
     take care to protect the reasonable and legitimate interests 
     of the innocent spouse and minor children of the defendant, 
     especially real property used as the actual home of that 
     innocent spouse and minor children, except to the extent that 
     the court determines that the interest of that innocent 
     spouse and children is the product of the criminal activity 
     of which the defendant has been convicted, or is the result 
     of a fraudulent transfer.
       ``(B) Fraudulent transfers.--In determining whether there 
     was a fraudulent transfer, the court shall consider whether 
     the debtor made the transfer--
       ``(i) with actual intent to hinder, delay, or defraud the 
     United States or other victim; or
       ``(ii) without receiving a reasonably equivalent value in 
     exchange for the transfer.
       ``(C) Considerations for protection of innocent parties.--
     In determining what portion of the jointly owned property 
     shall be set aside for the innocent spouse or children of the 
     defendant, or whether to have sold or divided the jointly 
     held property, the court shall consider--
       ``(i) the contributions of the other joint owner to the 
     value of the property;
       ``(ii) the reasonable expectation of the other joint owner 
     to be able to enjoy the continued use of the property; and
       ``(iii) the economic circumstances and needs of the 
     defendant and dependents of the defendant and the economic 
     circumstances and needs of the victim and the dependents of 
     the victim.''.

     SEC. 4. FINES.

       Section 3572(b) of title 18, United States Code, is amended 
     to read as follows:
       ``(b) Payments; Effect of Indigency.--Any fine, special 
     assessment, restitution, or cost shall be for a sum certain 
     and shall be payable immediately. In no event shall a 
     defendant incur any criminal penalty for failure to make a 
     payment on a fine, special assessment, restitution, or cost 
     as a result of the indigency of the defendant.''.

     SEC. 5. RESENTENCING.

       Section 3614(a) of title 18, United States Code, is amended 
     by inserting before the period at the end the following: ``or 
     may increase the sentence of the defendant to any sentence 
     that might originally have been imposed under the applicable 
     statute''.
                                                                    ____



                                       National Victim Center,

                                                   March 18, 1997.
     Hon. Spencer Abraham,
     U.S. Senate,
     Washington, DC.
       Dear Senator Abraham: The National Victim Center would like 
     to express it strong support for your bill, the Victims 
     Restitution Enforcement Act of 1997. Restitution is one of 
     the most direct manifestations of justice that our criminal 
     justice system can provide: requiring the convicted offender 
     to pay for the harm caused by his criminal conduct. No other 
     aspect of our system has a greater impact on the lives of 
     crime victims, or on their satisfaction with the criminal 
     justice process.
       The provisions of this bill would greatly facilitate the 
     ordering and collection of restitution for victims' of 
     federal offenses, and would serve as a mode for state 
     legislatures who are searching for a means to enhance their 
     own restitution efforts. Adoption of this bill would fully 
     implement the spirit of the Mandatory Victims' Restitution 
     Act of 1996 (P.L. 104-132, Sec. 201 et seq.). It would 
     provide courts the information necessary to issue meaningful 
     restitution orders, would create a raft of mechanisms to 
     enhance the enforcement of those orders.
       Passage of the Victims Restitution Enforcement Act of 1997 
     would send a strong signal to the American people that the 
     federal government will do everything in its power to provide 
     justice to our nation's crime victims. We urge your fellow 
     congress members to join in supporting this important 
     legislation.
           Yours truly,
                                                     David Beatty,
     Acting Executive Director.
                                                                    ____



                                           Michigan Coalition,

                                                    April 8, 1997.
     Hon. Spencer Abraham,
     U.S. Senator,
     Washington, DC.
       Dear Senator Abraham: The Michigan Coalition Against 
     Domestic and Sexual Violence (MCADSV) fully supports the 
     Victim Restitution Enforcement Act that you introduce today. 
     Perpetrators of domestic violence and sexual assault exact a 
     devastating emotional toll on their victims, a price that 
     many survivors pay for a lifetime. Additionally, there are 
     often substantial financial costs borne by the victim. 
     Obvious expenses are those for property damage and medical 
     care. Often overlooked are the costs of counseling, lost work 
     time, child care, and expenses related to preparing for and 
     attending the trial.
       While there is no legislative or other remedy to erase the 
     pain and terror experienced as a result of violent crime, we 
     can take greater measures to ensure that victims are not 
     forced to pay, out of their own pockets, for the actions of 
     criminals. This legislation is necessary both to empower 
     victims and require more perpetrators to pay for the 
     financial consequences of their crimes.
       MCADSV greatly appreciates your advocacy efforts on behalf 
     of crime victims by sponsoring this important initiative.
           Sincerely yours,

                                            Kathleen Hagenian,

                                                         Director,
                               Public Policy and Program Services.
                                 ______