A BILL to amend and reenact §§ 19.2-340, 19.2-341, and 19.2-354 of the Code of Virginia, relating to fines and costs; period of limitations on collection; deferred payment agreement.
HB268 revises Virginia law governing the collection of criminal and traffic fines, costs, penalties, forfeitures, and restitution. The bill amends the statutes on how fines and monetary penalties are recovered and, most notably, changes the limitations period for collecting certain penalties from 60 years to 10 years for circuit court judgments and from 30 years to 10 years for general district court judgments. It also provides that once the limitations period expires, collection actions may not be brought and the debt may not be revived or restarted by partial payment, acknowledgment, or a change in collection method.
The bill also changes how deferred and installment payment agreements work. Courts must enter defendants sentenced to active incarceration into deferred payment agreements for related financial obligations, with the due date set no earlier than 180 days after release. The bill clarifies that the limitations period for those obligations begins on the deferred-payment due date. It also preserves and expands court authority to set installment plans, use community service credits to satisfy fines or costs, and manage payment collection through correctional programs and the Tax Commissioner.
HB268 would materially shorten the collection window for many court-imposed monetary obligations in Virginia and limit the ability of the Commonwealth and localities to pursue old debts. It amends §§ 19.2-340 and 19.2-341 to impose a firm statute of limitations on collection and bars revival of expired debts, while § 19.2-354 is revised to require deferred payment treatment for incarcerated defendants and to delay the start of the limitations period until after release. The bill affects courts, clerks, the Department of Corrections, local jails, the Tax Commissioner, and defendants owing fines, costs, restitution, or penalties. It is set to take effect January 1, 2027.
The available voting history suggests strong committee support, as the bill was continued to the next session in Finance and Appropriations by a 15-0 vote. No committee transcript was provided, so there is no recorded debate to indicate opposition or amendments in discussion. Overall, the bill appears to have been received favorably at the committee level.
The main policy tension in HB268 is between debt collection and relief from long-dormant court debt. Supporters would likely view the bill as limiting indefinite collection efforts and making payment obligations more manageable, especially for incarcerated defendants who cannot realistically pay until after release. Potential concerns center on the loss of long-term collection authority for the Commonwealth and localities, and on whether shortening the limitations period could reduce recovery of fines, costs, and restitution. The bill also raises administrative issues for courts, clerks, correctional facilities, and the Tax Commissioner in implementing the new deferred-payment and limitations rules.