One district attorney says the writing of bad checks has become a widespread problem that is hurting Maine retailers and costing the state lost revenue as well. To try to prevent the most serious scofflaws from ripping off merchants, Rep. Michael Shaw of Standish is proposing to increase penalties for negotiating worthless instruments. But critics say it will only shift the burden to cash-strapped courts and overcrowded jails.

No one knows for sure how much bad checks are costing the state and local businesses, but one southern Maine retailer estimates he's lost close to $70,000 in the past three years.

He shared his experience with members of the Legislature's Criminal Justice and Public Safety Committee. "And these people have no intention of paying. And it probably winds up being four or five grand in income taxes that you guys aren't going to get from me because that comes off my bottom line," Dana Lampron said.

Lampron owns a convenience store and heating oil business called Pit Stop Fuels. He says he's implemented a policy that requires first-time customers to pay by credit card, cash or money order. He says that has curbed the the problem but it hasn't ended it.

He says he doesn't want to ban checks completely because so many older customers rely on them. His dilemma is that, like other merchants, Lampron still has to pay the sales tax on his products every month whether he gets paid or not.
"And what we're doing is we're supporting the crooks, cause they're laughing at you. They're thumbing their nose at the system because they refuse to cooperate."

In Cumberland County where he lives, Lampron says bad checks are sent to the district attorney's office and then referred to a collection agency. But Lampron estimates that he only recovers about 10 percent of what's owed him.

And he says he's been advised that anything under $500 isn't prosecuted. "It's another welfare system, you know, on the backs of business and honest people that are already paying their taxes for all the other welfare systems we have in this state."

Enter state Rep. Michael Shaw with a proposed solution: Boost the penalties for writing bad checks. For example, he suggests that a bad check of $500 or more be made a felony and that those convicted pay triple damages as well as court costs and attorney fees.

Jack Comart, an attorney for Maine Equal Justice, a low-income advocacy group, says requiring people to spend more time in jail for writing $500 worth of bouncing checks is the wrong solution.

"The bill makes no distinction between those who, through no fault of their own, are not able to tender the amount of the check and fees within ten days," Comart said. "We often deal with people living on fixed incomes such as social security, SSI and TANFF and many times they don't get their direct deposit check through no fault of their own but through a bureaucratic mixup."

Comart says if a person on SSI writes a $500 check for their rent and then doesn't get paid before that check bounces, the penalty proposed in Shaw's bill seems excessive. In addition, Comart says it will cost the state to house offenders in jail.
And, says John Pelletier, executive director of the Maine Commission on Indigent Legal Services, it will cost the state more in court-appointed attorneys fees by converting certain crimes to felonies. "Right now with respect to misdemeanors, class D and E crimes, if someone is charged with one of those crimes they're not entitled to court-appointed counsel unless the district attorney is looking for jail. But if the person is charged with a felony they are entitled to court-appointed counsel and if they're indigent they'll receive court-appointed counsel."

In addition, Pelletier says research shows that when low-risk offenders are subjected to stiff sanctions for behavior that is an anomoly they can become high risk offenders. He says making bad check writers pay simple restitution to merchants is probably a more effective sentence. Others say uniform enforcement by district attorneys across the state could also help.