Senate Judiciary delays bill that would divert part of insurance‑collected restitution to DOJ victim services

The Senate Committee on Judiciary carried over House Bill 3816A on Monday after extended discussion about whether and how insurance carriers should remit part of criminal restitution awards to the state to fund victim services.

The bill, as presented in committee, would require an insurance carrier that receives an award of criminal restitution to pay 50% of that award to the Department of Justice to fund victim services and also clarifies that a restitution award is credited to the defendant toward any civil judgment. Sponsors said the measure also preserves a carrier’s ability to direct a district attorney not to seek restitution so the insurer can instead pursue civil recovery.

Senator McLean and other members questioned whether the obligation applies to the full award regardless of collection, or only to amounts actually collected. Counsel confirmed that section 2 of the draft ties payment to collection, but senators said the language could be clearer. McLean also said she was troubled by singling out insurance carriers as a funding mechanism for victim services and worried the provision could produce uneven incentives for insurers to pursue civil litigation rather than criminal restitution.

Committee counsel summarized that the intent presented was that the obligation would attach only upon collection; sponsors asked for time to refine statutory language. After discussion the committee agreed to carry the bill to the next work session so sponsors could address drafting clarity and the policy concerns raised.

Senators asked counsel to clarify whether a carrier would owe 50% of an award regardless of collection or 50% of amounts actually collected, and to provide clearer legislative text about how the collection obligation would interact with civil recovery and defendant payment.