State House members approved a bill on Monday to ban courts from ordering juveniles to pay restitution to insurance companies.

House Bill 1373 seeks to prohibit courts from ordering juveniles to pay restitution to insurance companies, though it still allows the courts to mandate juveniles pay restitution to victims.

From 2016 to 2020, 234 juveniles in Colorado were ordered to pay over $3.57 million in restitution fees to insurance companies, according to state data. Of that $3.57 million, only $146,348 – or 4% – has been paid.

“Insurance companies are not victims,” said bill sponsor Rep. Serena Gonzales-Gutierrez, D-Denver. “This is very specific to insurance companies that also go after youth for restitution, even after a young person has paid restitution or is making payments to their victims, which is where the money should actually go.”

Supporters of the bill said high restitution fees from insurance companies continue a cycle of crime and poverty for juveniles, pushing them to reoffend to pay off impossibly high debts as they struggle to find work with criminal records. These debts also often get pushed onto parents, as many juvenile offenders are not old enough to legally work.

They added that restitution fees have 8% interest rates, are not dischargeable by filing for bankruptcy and can prohibit youth from activities, such as getting a driver’s license or taking out loans for school or work.

The House passed the bill in a 38-25 vote, with all Republicans in opposition and all Democrats in support except for Rep. Marc Synder of Colorado Springs. Opponents to the bill argued that it would result in insurance companies raising rates and victims of crimes not being fairly compensated.

The measure’s next stop is the Senate.