II
110th CONGRESS
1st Session
S. 1729
IN THE SENATE OF THE UNITED STATES
June 28, 2007
Mr. Leahy (for himself and Mr. Cochran) introduced the following bill; which was read twice and referred to the Committee on the Judiciary
A BILL
To amend titles 18 and 28 of the United States Code to provide incentives for the prompt payments of debts owed to the United States and the victims of crime by imposing surcharges on unpaid judgments owed to the United States and to the victims of crime, to provide for offsets on amounts collected by the Department of Justice for Federal agencies, to increase the amount of special assessments imposed upon convicted persons, to establish an Enhanced Financial Recovery Fund to enhance, supplement and improve the debt collection activities of the Department of Justice, to amend title 5, United States Code, to provide to assistant United States attorneys the same retirement benefits as are afforded to Federal law enforcement officers, and for authorized purposes.
Short title
This Act may be cited as the
Enhanced Financial Recovery and
Equitable Retirement Treatment Act of 2007
.
Enhanced financial recovery
Imposition of criminal surcharge
In general
Section 3612 of title 18, United States Code, is amended by striking subsection (g) and inserting the following:
Imposition of surcharge
In general
A surcharge shall be imposed upon a defendant if there are any unpaid criminal monetary penalties as of the date specified in subsection (f)(1).
Amount of surcharge
The surcharge imposed under paragraph (1) shall be—
5 percent of the unpaid principal balance; or
$50, if the unpaid balance is less than $1,000.
Allocation of payments
Fine or special assessment
If a surcharge is imposed under paragraph (1) for a fine or special assessment—
an amount equal to 95 percent of each principal payment made by a defendant shall be credited to the Crime Victims Fund established under section 1402 of the Victims of Crime Act of 1984 (42 U.S.C. 10601); and
an amount equal to 5 percent of each principal payment shall be credited to the Department of Justice Enhanced Financial Recovery Fund established under section 104 of the Enhanced Financial Recovery and Equitable Retirement Treatment Act of 2007.
Restitution
If a surcharge is imposed under paragraph (1) for a restitution obligation—
an amount equal to 95 percent of each principal payment shall be paid to any victim identified by the court; and
an amount equal to 5 percent of each principal payment shall be credited to the Department of Justice Enhanced Financial Recovery Fund established under section 104 of the Enhanced Financial Recovery and Equitable Retirement Treatment Act of 2007.
Surcharges
For any payment made by a defendant after the full amount of a surcharge imposed under paragraph (1) has been satisfied, the full amount of such payment shall be credited to the principal amount due or accrued interest, as the case may be.
Definitions
In this section—
the term criminal monetary penalties includes the principal amount of any amount imposed as a fine, restitution obligation, or special assessment, regardless of whether any payment schedule has been imposed; and
the term principal payment does not include any amount that is imposed as interest, penalty, or a surcharge.
.
Conforming amendments
Section 3612 of title 18, United States Code, is amended—
by striking subsections (d) and (e); and
by redesignating subsections (f) through (i), as amended by this Act, as subsection (d) through (g), respectively.
Imposition of civil surcharge
In general
Section 3011 of title 28, United States Code, is amended to read as follows:
Imposition of surcharge
In general
A surcharge shall be imposed on a defendant if there is an unpaid balance due to the United States on any money judgment in a civil matter recovered in a district court as of—
the fifteenth day after the date of the judgment; or
if the day described in paragraph (1) is a Saturday, Sunday, or legal public holiday, the next day that is not a Saturday, Sunday, or legal holiday.
Amount of surcharge
A surcharge imposed under subsection (a) shall be—
5 percent of the unpaid principal balance; or
$50, if the unpaid balance is less than $1,000.
Allocation of payments
If a surcharge is imposed under subsection (a)—
an amount equal to 95 percent of each principal payment made by a defendant shall be credited as otherwise provided by law; and
an amount equal to 5 percent of each principal payment shall be credited to the Department of Justice Enhanced Financial Recovery Fund established under section 104 of the Enhanced Financial Recovery and Equitable Retirement Treatment Act of 2007.
Surcharges
For any payment made by a defendant after the full amount of a surcharge imposed under subsection(a) has been satisfied, the full amount of such payment shall be credited to the principal amount due or accrued interest, as the case may be.
Definitions
In this section—
the term principal payment does not include any amount that is imposed as interest, penalty, or a surcharge; and
the term unpaid balance due to the United States includes any unpaid balance due to a person that was represented by the Department of Justice in the civil matter in which the money judgment was entered.
.
Technical and conforming amendment
The table of sections at the beginning of subchapter A of chapter 176 of title 28, United States Code, is amended by striking the item relating to section 3011 and inserting the following:
.
Increase in the amount of special assessments
Section 3013 of title 18, United States Code, is amended by striking subsection (a) and inserting the following:
The court shall assess on any person convicted of an offense against the United States—
in the case of an infraction or a misdemeanor—
if the defendant is an individual—
the amount of $10 in the case of an infraction or a class C misdemeanor;
the amount of $25 in the case of a class B misdemeanor; and
the amount of $100 in the case of a class A misdemeanor; and
if the defendant is a person other than an individual—
the amount of $100 in the case of an infraction or a class C misdemeanor;
the amount of $200 in the case of a class B misdemeanor; and
the amount of $500 in the case of a class A misdemeanor; and
in the case of a felony—
the amount of $200 if the defendant is an individual; and
the amount of $1,000 if the defendant is a person other than an individual.
.
Enhanced financial recovery fund
Establishment
There is established in the Treasury a
separate account known as the Department of Justice Enhanced Financial Recovery
Fund (in this section referred to as the Fund
).
Deposits
Notwithstanding section 3302 of title 31, United States Code, or any other law regarding the crediting of collections, there shall be credited as an offsetting collection to the Fund an amount equal to—
2 percent of any amount collected pursuant to civil debt collection litigation activities of the Department of Justice (in addition to any amount credited under section 11013 of the 21st Century Department of Justice Appropriations Authorization Act (28 U.S.C. 527 note));
5 percent of all amounts collected as restitution due to the United States pursuant to the criminal debt collection litigation activities of the Department of Justice;
any surcharge collected under section 3612(g) of title 18, United States Code, as amended by this Act, or section 3011 of title 28, United States Code, as amended by this Act; and
50 percent of any special assessment collected under section 3013(a) of title 18, United States Code, as amended by this Act.
Availability
The amounts credited to the Fund shall remain available until expended.
Payments from the Fund
Amount
In general
Except as provided in subparagraph (B), the Attorney General shall use not less than $20,000,000 of the Fund in each fiscal year, to the extent that funds are available, for the civil and criminal debt collection activities of the Department of Justice, including restitution judgments where the beneficiaries are the victims of crime.
Exceptions
Adjustment of amount
In each fiscal year following the first fiscal year in which deposits into the Fund are greater than $20,000,000, the amount to be used under paragraph (1) shall be increased by a percentage equal to the change in the Consumer Price Index for the calendar year preceding that fiscal year.
Limitation
In any fiscal year, amounts in the Fund shall be available to the extent that the amount appropriated in that fiscal year for the purposes described in subparagraph (A) is not less than an amount equal to the amount appropriated for such activities in fiscal year 2006, adjusted annually in the same proportion as increases reflected in the amount of aggregate level of appropriations for the Executive Office of United States Attorneys and United States Attorneys.
Use of funds
In general
Funds used under paragraph (1) shall be used to enhance, supplement, and improve civil and criminal debt collection litigation activities of the Department of Justice, primarily such activities by United States attorneys’ offices. A portion of such sums may be used by the Department of Justice to provide legal, investigative, accounting, and training support to the United States attorneys’ offices.
Limitation on use
Funds used under paragraph (1) may not be used to determine whether a defendant is guilty of an offense or liability to the United States (except incidentally for the provision of assistance necessary or desirable in a case to ensure the preservation of assets or the imposition of a judgment which assists in the enforcement of a judgment or in a proceeding directly related to the failure of a defendant to satisfy the monetary portion of a judgment).
Other use of funds
After using funds under subsection (d), the Attorney General may use amounts remaining in the Fund for additional civil or criminal debt collection activities, for personnel expenses, for personnel benefit expenses incurred as a result of this Act or the amendments made by this Act, or for other prosecution and litigation expenses. The availability of amounts from the Fund shall have no effect on the implementation of title II or the amendments made by title II.
Definition
In this section, the term United States—
includes—
the executive departments, the judicial and legislative branches, the military departments, and independent establishments of the United States; and
corporations primarily acting as instrumentalities or agencies of the United States; and
except as provided in paragraph (1), does not include any contractor of the United States.
Effective dates
In general
The amendments made by section 101 and section 103 shall apply to any offense committed on or after the date of enactment of this Act, including any offense involving conduct that continued on or after the date of enactment of this Act.
Fund and surcharges
In general
Section 104 and the amendments made by section 102 shall take effect 30 days after the date of enactment of this Act.
Pending cases
The amendments made by section 102 shall apply to any case pending on or after the date of enactment of this Act.
Equitable retirement treatment of assistant United States attorneys
Retirement treatment of assistant United States attorneys
Civil service retirement system
Assistant United States attorney defined
Section 8331 of title 5, United States Code, is amended—
in paragraph (28), by striking
and
at the end;
in paragraph (29) relating to dynamic assumptions, by striking the period and inserting a semicolon;
by redesignating paragraph (29) relating to air traffic controllers as paragraph (30);
in paragraph (30), as so redesignated, by
striking the period and inserting ; and
; and
by adding at the end the following:
assistant United States attorney means an assistant United States attorney appointed under section 542 of title 28.
.
Retirement treatment
Chapter 83 of title 5, United States Code, is amended by adding after section 8351 the following:
Assistant United States attorneys
Except as provided under the Enhanced Financial Recovery and Equitable Retirement Treatment Act of 2007 (including the provisions relating to the non-applicability of mandatory separation requirements under section 8335(b) and 8425(b) of this title), an assistant United States attorney shall be treated in the same manner and to the same extent as a law enforcement officer for purposes of this chapter.
.
Technical and conforming amendments
Table of sections
The table of sections for chapter 83 of title 5, United States Code, is amended by inserting after the item relating to section 8351 the following:
.
Mandatory separation
Section 8335(a) of title 5, United States
Code, is amended by striking 8331(29)(A)
and inserting
8331(30)(A)
.
Federal employees' retirement system
Assistant United States attorney defined
Section 8401 of title 5, United States Code, is amended—
in paragraph (34), by striking
and
at the end;
in paragraph (35), by striking the period
and inserting ; and
; and
by adding at the end the following:
assistant United States attorney means an assistant United States attorney appointed under section 542 of title 28.
.
Retirement treatment
Section 8402 of title 5, United States Code, is amended by adding at the end the following:
Except as provided under the Enhanced Financial Recovery and Equitable Treatment Act of 2006 (including the provisions relating to the non-applicability of mandatory separation requirements under section 8335(b) and 8425(b) of this title), an assistant United States attorney shall be treated in the same manner and to the same extent as a law enforcement officer for purposes of this chapter.
.
Mandatory separation
Sections 8335(b)(1) and 8425(b)(1) of title
5, United States Code, are each amended by adding at the end the following:
This subsection shall not apply in the case of an assistant United
States attorney.
.
Provisions relating to incumbents
Definitions
In this section—
the term assistant United States attorney means an assistant United States attorney appointed under section 542 of title 28, United States Code.
the term incumbent means an individual who is serving as an assistant United States attorney on the effective date of this section.
Notice requirement
Not later than 9 months after the date of enactment of this Act, the Department of Justice shall take measures reasonably designed to provide notice to incumbents on—
their election rights under this title; and
the effects of making or not making a timely election under this title.
Election available to incumbents
In general
An incumbent may elect, for all purposes, to be treated—
in accordance with the amendments made by this title; or
as if this title had never been enacted.
Failure to elect
Failure to make a timely election under this subsection shall be treated in the same way as an election under paragraph (1)(A), made on the last day allowable under paragraph (3).
Time limitation
An election under this subsection shall not be effective unless the election is made not later than the earlier of—
120 days after the date on which the notice under subsection (b) is provided; or
the date on which the incumbent involved separates from service.
Limited retroactive effect
Effect on retirement
In the case of an incumbent who elects (or is deemed to have elected) the option under subsection (c)(1)(A), all service performed by that individual as an assistant United States attorney (and, with respect to subparagraph (B) of this paragraph, any service performed by such individual pursuant to an appointment under sections 515, 541, 543, and 546 of title 28, United States Code) shall—
to the extent performed on or after the effective date of that election, be treated in accordance with applicable provisions of subchapter III of chapter 83 or chapter 84 of title 5, United States Code, as amended by this title; and
to the extent performed before the effective date of that election, be treated in accordance with applicable provisions of subchapter III of chapter 83 or chapter 84 of title 5, United States Code, as if the amendments made by this title had then been in effect.
No other retroactive effect
Nothing in this title (including the amendments made by this title) shall affect any of the terms or conditions of an individual's employment (apart from those governed by subchapter III of chapter 83 or chapter 84 of title 5, United States Code) with respect to any period of service preceding the date on which such individual's election under subsection (c) is made (or is deemed to have been made).
Individual contributions for prior service
In general
An individual who makes an election under subsection (c)(1)(A) shall, with respect to prior service performed by such individual, deposit, with interest, to the Civil Service Retirement and Disability Fund the difference between the individual contributions that were actually made for such service and the individual contributions that would have been made for such service if the amendments made by section 202 of this title had then been in effect.
Effect of not contributing
If the deposit required under paragraph (1) is not paid, all prior service of the incumbent shall remain fully creditable as law enforcement officer service, but the resulting annuity shall be reduced in a manner similar to that described in section 8334(d)(2)(B) of title 5, United States Code.
Prior service defined
In this subsection, the term prior service means, with respect to any individual who makes an election (or is deemed to have made an election) under subsection (c)(1)(A), all service performed as an assistant United States attorney, but not exceeding 20 years, performed by such individual before the date as of which applicable retirement deductions begin to be made in accordance with such election.
Regulations
The Office of Personnel Management shall prescribe regulations necessary to carry out this title, including provisions under which any interest due on the amount described under subsection (e) shall be determined.
Effective dates
In general
The amendments made by section 201 shall take effect on the first day of the first applicable pay period beginning on or after 120 days after the date of enactment of this Act.
Incumbents
Section 202 of this title shall take effect 120 days after the date of enactment of this Act.