[Congressional Record Volume 157, Number 50 (Thursday, April 7, 2011)]
[Senate]
[Page S2268]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. WYDEN (for himself, Mr. Sessions, Mrs. McCaskill, Mr.
Thune, Mrs. Boxer, and Mr. Graham):
S. 755. A bill to amend the Internal Revenue Code of 1986 to allow an
offset against income tax refunds to pay for restitution and other
State judicial debts that are past-due; to the Committee on Finance.
Mr. WYDEN. Mr. President, today, along with my colleagues Senators
Sessions, McCaskill, Thune, Boxer, and Graham, I am introducing the
Crime Victim Restitution and Court Fee Intercept Act. This bipartisan
bill would help crime victims and state courts recover the restitution
and fees that are owed to them. This bill would accomplish this worthy
goal by intercepting tax refunds of deadbeat debtors who've failed to
pay restitution or court fees. If enacted, this bill would essentially
allow state courts to cross-reference outstanding debts with the IRS
and use existing procedures to withhold tax refunds in order to satisfy
past due debts.
This bill would not only deliver justice to crime victims who are
owed restitution, but would also provide much-needed resources to help
keep court rooms open and court programs operating. At a time when our
State and local governments are struggling to find funding for vital
programs--including keeping courthouse doors open--unpaid court fees
represent an important source of revenue that should be captured. This
bill would help close budget gaps and provide additional revenue
without raising taxes or imposing any new costs or burdens. In fact,
participation in the program would be optional for States, but I expect
most States to participate and to benefit greatly from this bill.
This bill would operate the same way as the very successful child
support debt collection system. The bill will allow states to share
information on outstanding restitution owed and court debts with the
IRS, which would then be required to intercept any Federal tax refunds
of debtors and send that money to the victim or court owed that debt.
It has been estimated by the National Center for State Courts that
outstanding court debts across the country total approximately $15
billion. In my home state of Oregon alone, the outstanding restitution
and court fee debt amount is $987 million. Only a portion of
outstanding debts are owed by individuals who will receive Federal tax
refunds, so a portion of court debts would not be collected
immediately. Nonetheless, the state of Oregon estimates that passage of
this bill would allow the State to collect $30 million per year.
Without this straight-forward and efficient mechanism, the collection
of victim restitution and court debts is a costly and time-consuming
process. Enactment of this bill would reduce the fiscal cost and
administrative burden that victims and courts bear in attempting to
collect those debts. Again, in the midst of a challenging fiscal
crisis, it only makes common sense to collect revenues that are already
owed--through an efficient and convenient method.
Because this bill would benefit both the court system, and those who
rely upon it, the Crime Victim Restitution and Court Fee Intercept Act
is endorsed by a broad array of court, government, law enforcement, and
crime victims' organizations. I would like to especially recognize the
National Center for State Courts and the American Bar Association for
their support in getting this bill introduced.
The bill is also supported by the Conference of Chief Justices, the
Conference of State Court Administrators, the National Association for
Court Managers, the National Conference of State Legislatures, the
National Association of Counties, the Government Finance Officers
Association, the National District Attorneys Association, the American
Probation and Parole Association, the National Crime Law Institute, the
National Center for Victims of Crime, the National Organization for
Victim Assistance, the National Association of Crime Victim
Compensation Boards, the National Association of VOCA Assistance
Administrators, the National Network to End Domestic Violence, the
National Alliance to End Sexual Violence, the National Organization of
Parents of Murdered Children Inc., and Mothers Against Drunk Driving.
I urge all colleagues to support this bipartisan legislation and I
yield the floor.
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