Senate Judiciary advances bill directing 50% of insurers' criminal restitution to DOJ victim services

The Senate Committee on Judiciary on May 20 voted to send House Bill 3816A to the floor with a due-pass recommendation, advancing a proposal that would require an insurance carrier that receives a criminal restitution award to pay 50% of the amount collected to the Oregon Department of Justice to fund victim services.

The measure “establishes that when an insurance carrier receives an award of criminal restitution, the insurer must pay 50% of the award to the Department of Justice to fund victim services,” a committee presenter said during the work session. The presenter also explained that “the full amount of restitution award is credited to the defendant towards any resulting civil judgment.”

The bill applies only to dollars actually collected by the court. As one example offered during the committee’s discussion: a $1,000 restitution award with only $500 collected would result in $250 going to the Department of Justice and $250 to the insurance carrier; the remaining $500 would remain outstanding.

The sponsor and supporters described the change as a way to fund victim programs. “If an insurance company … wants to avail themselves of a publicly funded attorney, there’s gonna be a cost for that service,” one committee speaker said, listing child advocacy centers and domestic violence services among programs that could be supported.

Opponents and cautious members raised constitutional and policy concerns. Senator McLean questioned whether the bill’s language is consistent with Article I, Section 42 of the Oregon Constitution, which guarantees victims the right “to recover prompt restitution from the convicted criminal who caused the victim’s loss or injury.” McLean stated in committee that he would vote no and said he was “a little bothered by its interplay with article 1, section 42.”

Supporters noted the state collects money on behalf of insurers—Office of the Judicial Department figures cited in the hearing staff report show roughly $1.4 million per biennium collected on behalf of insurance carriers in recent years—and argued dedicating a portion to victim services could offset reductions in federal funding such as VOCA. “We passed unanimously a resolution asking Congress to fully fund VOCA,” one senator said, calling the bill “an important initiative.”

Committee members also clarified how restitution distributions are prioritized under current practice: individual victims are paid first; only after victim payments are satisfied are insurance carriers paid and only then would the 50/50 split apply to the amounts collected for carriers.

Senator Thatcher moved the bill to the floor with a due-pass recommendation, and the committee accepted the motion. The committee record shows at least one member stated an intention to vote no in committee; the transcript does not include a roll-call tally in the work session record provided.

The committee did not adopt amendments at the work session. A committee member said the sponsor had indicated someone from the Senate would carry the bill on the floor.

What happened next: The committee closed the work session on HB 3816A and indicated the bill will proceed to a floor vote; the transcript records a committee member volunteering to carry the measure to the floor.