Virginia 2026 1st Special Session

Virginia House Bill HB488

Caption

An Act to amend and reenact §§ 2.2-804, 8.01-512.3, 8.01-515, 34-3, 34-29, and 58.1-105 of the Code of Virginia, relating to wage garnishment; state tax debt.

Summary

HB488 revises several Virginia Code provisions related to wage garnishment and collection of debts owed to the Commonwealth. The bill primarily updates § 2.2-804 to clarify when state officers and employees must repay improper compensation or payments, including overpayments caused by errors in records, erroneous benefit enrollments, or certain small good-faith reimbursement mistakes. It also authorizes the Commonwealth to recover some of those amounts through payroll deductions, subject to a cap of 25 percent of disposable earnings, and directs the Attorney General to pursue restitution when needed. The bill also amends garnishment-related statutes in Title 8.01 to update the required form of a garnishment summons and related procedures, and it amends § 58.1-105 concerning state tax debt. In practical terms, the measure strengthens and standardizes the Commonwealth’s tools for collecting overpayments and other debts, while tying recovery methods to existing wage-garnishment limits and debt-collection procedures.

Impact

HB488 affects state debt-collection and garnishment law by expanding and clarifying the Commonwealth’s authority to recover improper payments from state officers and employees, including through payroll deductions in specified circumstances. It also updates the statutory garnishment summons form and related enforcement provisions, and it touches the Code section governing state tax debt, signaling a broader effort to align collection procedures across different types of public debts. Affected parties include state employees, payroll administrators, the Attorney General, judgment creditors, and debtors subject to garnishment or restitution actions.

Sentiment

The available record suggests the bill was treated as a technical and administrative update rather than a highly controversial policy change. Its enactment as Chapter 396 indicates it ultimately received sufficient support to pass and be signed into law. Because no committee transcripts or vote details are provided, there is no evidence of organized opposition in the record, and the overall sentiment appears to have been neutral to favorable, focused on improving collection procedures and clarifying existing law.

Contention

The main potential points of contention are the bill’s expanded recovery authority and the use of payroll deductions to recoup overpayments from state workers. Employees could be concerned about automatic deductions, the scope of what counts as an overpayment, and how disputes are handled, while the Commonwealth would favor clearer and faster recovery mechanisms. Another possible issue is the interaction between garnishment limits, benefit-related under-withholdings, and small overpayments, though the bill narrows those deductions by capping them at 25 percent of disposable earnings and excluding certain VRS beneficiary payments.

Companion Bills

No companion bills found.

Similar Bills

No similar bills found.