(a) The Mayor of the District of Columbia shall prescribe and impose, in addition to any other penalties provided by law, a fee to be paid by each person who gives or causes to be given, in payment of any tax, assessment, fee, charge, or other obligation due the government of the District of Columbia, a check which is subsequently dishonored or not duly paid. The amount of the fee shall be prescribed from time to time by the Mayor and shall be based on the approximate cost to the District of Columbia of handling dishonored or unpaid checks and collecting the amounts they represent. The fee shall be collected in the same manner as the original obligation. Any receipt previously given in reliance upon such check shall be void, and no other receipt shall be given for the payment of the original amount due until the fee has also been paid. This section shall not apply to a check which is not paid because of the death of its drawer. The Mayor may issue rules and regulations necessary to carry out this section.
(b) Until such fee is prescribed by the Mayor pursuant to subsection (a) of this section, a fee in the amount of $15 shall be imposed by the Mayor upon each person who gives or causes to be given, in payment of any tax, assessment, fee, charge, or other obligation due the government of the District of Columbia, a check which is subsequently dishonored or not duly paid.
(c) In addition to any other penalties prescribed by law, the Mayor may contract for the collection of the amount represented by any dishonored or unpaid check that is given, or caused to be given, to the Mayor in payment of any liability or obligation owed to the District of Columbia government.
(d) In addition to the dishonored check fee provided for in subsection (b) of this section when collection of a dishonored or unpaid check is made pursuant to a contract authorized by subsection (c) of this section, the Mayor shall collect any costs or expenses incurred to recover and collect the amount represented by a dishonored or unpaid check from any such person who gives, or causes to be given, in payment of any obligation or liability due the District of Columbia government a check which is subsequently dishonored or not duly paid. In cases where collection is made by action at law or suit in equity, such costs and expenses shall include litigation expenses and attorneys fees.
(e) The Corporation Counsel is authorized to institute actions at law or in equity for the recovery of all amounts owed to the District as set forth in subsection (d) of this section, including the Corporation Counsel's own litigation expenses and attorneys fees. In the event the Corporation Counsel elects not to exercise his or her authority under this subsection, any person who, or entity that, renders the collection services provided for in subsection (c) of this section shall have the authority to institute actions at law or suits in equity for the recovery of the amounts represented by any dishonored or unpaid check, in addition to any amounts charged by the collector for collecting a dishonored or unpaid check and any litigation expenses and attorneys fees incurred by the collector for such collection.
(f) Notwithstanding the Mayor entering into a collection contract pursuant to subsection (c) of this section, the Mayor retains exclusive authority with respect to all District obligations and liabilities, including, but not limited to, the authority to resolve a dispute, comprise a claim, end collection activity, or establish a schedule of fees and expenses.
(g) There is hereby established within the General Fund of the District of Columbia a segregated, lapsing fund to be known as the Dishonored Check Fee Collection Fund (“Fund”). Any monies deposited in the Fund shall be used exclusively for the purposes set forth in this section. Any unexpended funds in the Fund at the end of a fiscal year shall revert to the unrestricted fund balance of the General Fund of the District of Columbia.
CREDIT(S)
(Sept. 28, 1965, 79 Stat. 844, Pub. L. 89-208, § 1; July 18, 1981, D.C. Law 4-16, § 2, 28 DCR 2365; Nov. 19, 1997, 111 Stat. 2186, Pub. L. 105-100, § 157(b); Mar. 20, 1998, D.C. Law 12-60, § 1501, 44 DCR 7378; Oct, 20, 2005, D.C. Law 16-33, § 1102, 52 DCR 7503; Sept. 14, 2011, D.C. Law 19-21, § 9009, 58 DCR 6226.)
HISTORICAL AND STATUTORY NOTES
Prior Codifications
1981 Ed., § 1-357.
1973 Ed., § 1-264.
Effect of Amendments
D.C. Law 16-33, added subsec. (g).
D.C. Law 19-21, in subsec. (g), substituted “lapsing fund to be known as the Dishonored Check Fee Collection Fund (‘Fund’). Any monies deposited in the Fund shall be used exclusively for the purposes set forth in this section. Any unexpended funds in the Fund at the end of a fiscal year shall revert to the unrestricted fund balance of the General Fund of the District of Columbia” for “nonlapsing fund to be known as the Dishonored Check Fee Collection Fund (‘Fund’); provided, that any funds deposited in the Fund in the year prior to a current year and the interest earned on that money remaining in the Fund after the payment of the costs accrued in the prior year, less 10% of the remainder amount that shall be retained as a reserve operating balance, shall be transferred or revert to the General Fund of the District of Columbia. All funds obtained from the fees authorized by this section, shall be deposited into the Fund and shall be used, subject to authorization by Congress in an appropriations act, to pay the costs of operating and maintaining the office or offices responsible for processing the fees authorized by this section.”
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 1501 of Fiscal Year 1998 Revised Budget Support Temporary Act of 1997 (D.C. Law 12-59, March 20, 1998, law notification 45 DCR 2094).
Emergency Act Amendments
For temporary amendment of section, see § 1501 of the Fiscal Year 1998 Revised Budget Support Emergency Act of 1997 (D.C. Act 12-152, October 17, 1997, 44 DCR 6196), and see § 1501 of the Fiscal Year 1998 Revised Budget Support Congressional Review Emergency Act of 1997 (D.C. Act 12-239, January 13, 1998, 45 DCR 508).
For temporary (90 day) amendment of section, see § 1102 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).
For temporary (90 day) repeal of section, see § 1054(a) of Fiscal Year 2013 Budget Support Emergency Act of 2012 (D.C. Act 19-383, June 19, 2012, 59 DCR 7764).
For temporary (90 day) repeal of section, see § 1054(a) of Fiscal Year 2013 Budget Support Congressional Review Emergency Act of 2012 (D.C. Act 19-413, July 25, 2012, 59 DCR 9290).
Legislative History of Laws
Law 4-16 was introduced in Council and assigned Bill No. 4-126, which was referred to the Committee on Finance and Revenue. The Bill was adopted on first and second readings on April 7, 1981 and May 5, 1981, respectively. Signed by the Mayor on May 21, 1981, it was assigned Act No. 4-31 and transmitted to both Houses of Congress for its review.
Law 12-60, the “Fiscal Year 1998 Revised Budget Support Act of 1998,” was introduced in Council and assigned Bill No. 12-353, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on September 8, 1997, and October 7, 1997, respectively. Signed by the Mayor on October 24, 1997, it was assigned Act No. 12-191 and transmitted to both Houses of Congress for its review. D.C. Law 12-60 became effective on March 20, 1998.
For Law 16-33, see notes following § 1-617.17.
For history of Law 19-21, see notes under § 1-301.01.
Miscellaneous Notes
Application of Law 12-60: Section 2002 of D.C. Law 12-60 provided that the act shall apply as of October 1, 1997.
Short title of subtitle Q of title I of Law 16-33: Section 1101 of D.C. Law 16-33 provided that subtitle Q of title I of the act may be cited as the Dishonored Check Fee Collection Fund Establishment Act of 2005.