2014 Special Session I

Budget Amendments - HB5002 (Floor Approved)

View Budget Item
View Budget Item amendments

Modify Lang. Related to Collection of Overdue Payments (language only)

Item 70 #1h

Item 70 #1h

Compensation Board

Page 53, strike lines 30 through 40 and insert:
"I.1. In accordance with the provisions of § 19.2-349, Code of Virginia, attorneys for the Commonwealth may employ individuals, or contract with private attorneys, private collection agencies or other state or local agencies, to assist in collection of delinquent fines, costs, forfeitures, penalties, and restitution. If the attorney for the Commonwealth employs individuals, the costs associated with employing such individuals may be paid from the proceeds of the amounts collected provided that the cost is apportioned on a pro rata basis according to the amount collected which is due the state and that which is due the locality. If the attorney for the Commonwealth does not undertake collection, the attorney for the Commonwealth shall, as soon as practicable, take steps to ensure that any agreement or contract with an attorney or agency complies with the terms of the current Master Guidelines Governing Collection of Unpaid Delinquent Court-Ordered Fines and Costs Pursuant to Virginia Code § 19.2-34 9 promulgated by the Office of the Attorney General, the Executive Secretary of the Supreme Court, the Department of Taxation, and the Compensation Board ("the Master Guidelines"). Notwithstanding any other provision of law, the delinquent amounts owed shall be increased by seventeen (17) percent to help offset the costs associated with employing such individuals or contracting with such agencies. If such increase would exceed the contracted collection agent's fee, then the delinquent amount owed shall be increased by the percentage or amount of the collection agent's fee. Collection fees maybe paid on a contingency basis, except that any reimbursements to treasurers or other local government entity shall be reimbursed as administrative cost pursuant to §58.1-3958, Code of Virginia. The attorneys for the Commonwealth shall account for the amounts collected and the fees and costs associated with the collections consistent with procedures issued by the Auditor of Public Accounts.
2. Notwithstanding the provisions of subparagraph 1. above, treasurers who had an  agreement in place as of January 1, 2014, to be paid on a contingency basis shall be able to be compensated on a contingency basis through December 31, 2016."

(This amendment restores original language inadvertently removed from the 2013 Acts of Assembly when amended by the 2013 General Assembly to establish an increase rate for recovering a portion of collection costs. The amendment also provides consistency in the implementation of the language approved in the 2013 Session by requiring a consistent rate across localities, and eliminates a changing rate at the point of six months of delinquency as the change is impractical to enforce. The amendment also ensures contracting is updated to comply with the 2013 policy changes intended by the original amendment.)