Virginia HB 339: Va. Debt Collections Act; public higher educational institutions, payment of student debt.

Status: Governor's Action Deadline Midnight, April 9, 2018 (as of 2018-03-06)

State: Virginia · Session: 2018 · Bill: HB 339

Subjects: Administration of Government

Sponsors: Marcus B. Simon, Dawn M. Adams, Debra H. Rodman

Bill Text

Bill Tracking - 2018 session > Legislation 

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2018 SESSION

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18100867D

HOUSE BILL NO. 339 

Offered January 10, 2018 

Prefiled January 4, 2018 

A BILL to amend and reenact � 2.2-4806 of the Code of 
 Virginia, relating to the Virginia Debt Collection Act; public institutions of 
 higher education. 
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Patrons-- Simon, Adams, D.M. and Rodman 

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Referred to Committee on Appropriations 

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Be it enacted by the General Assembly of Virginia:

1. That � 2.2-4806 of the Code of Virginia is amended and 
 reenacted as follows:

� 2.2-4806. Utilization of certain collection techniques.

A. Each state agency and institution shall take all 
 appropriate and cost-effective actions to aggressively collect its accounts 
 receivable. Each agency and institution shall utilize, but not be limited to, 
 the following collection techniques, according to the policies and procedures 
 required by the Department of Accounts and the Division: (i) credit reporting 
 bureaus, (ii) collection agencies, (iii) garnishments, liens and judgments, 
 (iv) administrative offset, and (v) participation in the Treasury Offset 
 Program of the United States under 31 U.S.C. � 3716.

B. Except as provided otherwise herein, for collection of 
 accounts receivable of $3,000 or more that are 60 days past due, each agency 
 and institution shall forward those claims to the Division for collection. The 
 Division shall review forwarded accounts, determine the appropriate collection 
 efforts, if any, for each account, and take such actions on the accounts as the 
 Division may so determine.

C. Except as provided otherwise herein, for collection of 
 accounts receivable under $3,000 that are 60 days past due, each agency and 
 institution shall contract with a private collection agency for the collection 
 of those debts. Prior to referring accounts receivable of less than $3,000, 
 agencies and institutions may refer such accounts to the Division. The Division 
 may accept the account for collection or return it to the agency or institution 
 for collection by a private collection agency.

D. Except as otherwise provided in this subsection, where a 
 debtor is paying a debt in periodic payments to an agency or institution, the 
 agency or institution may elect to retain the claim in excess of 60 days 
 provided that such periodic payments are promptly paid until the account is 
 satisfied. In the event the debtor is delinquent (i) by 60 days in paying a 
 periodic payment or (ii) for such other period of time approved by the 
 Division, the account shall be handled in the manner provided by subsections B 
 and C of this section.

E. A 
 public institution of higher education shall provide a debtor who is currently 
 enrolled in such institution the option to pay his debt in periodic payments 
 over the course of t

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