Virginia 2024 Regular Session

Virginia House Bill HB1192

Introduced

1/10/24

Refer

1/10/24

Caption

State debt collection; establishes statute of limitations.

Impact

The introduction of HB 1192 is poised to significantly change the landscape of debt collection for state agencies in Virginia. By requiring that collection actions commence within seven years, the bill aims to streamline the process and ensure timely recovery of overdue accounts. This amendment may assist universities and institutions in financial management by providing clearer guidelines on how to handle debts, thus positively impacting their financial stability.

Summary

House Bill 1192 seeks to amend the Code of Virginia by establishing a statute of limitations for the collection of debts owed to state agencies and institutions. This bill outlines various collection techniques that state agencies must employ to recover past due accounts receivable, with a focus on initiating these collection efforts within a stipulated seven-year window from when the debt was incurred. The bill mandates state agencies to take aggressive actions to recover debts, promoting accountability in state financial management.

Contention

Several points of contention arise from the discussions surrounding HB 1192, particularly concerning the implications for debtors. Critics may argue that imposing strict timelines for debt collection could lead agencies to pursue debts more aggressively, potentially resulting in harsher financial repercussions for individuals who are struggling to pay. Additionally, the bill includes exemptions for certain medical debts, which has spurred conversations about fair treatment and the balance of recovery efforts against the financial pressures faced by individuals in medical distress.