HB 1142 — Deferred or installment payment agreements; outstanding court-assessed fines, fees, taxes, or costs.

+ 2027 SESSION + ENGROSSED + SENATE SUBSTITUTE + + 26108687D26107244D HOUSE BILL NO.

1142 AMENDMENT IN THE NATURE OF A SUBSTITUTE (Proposed by the SenateHouse Committee for Courts of Justice on FebruaryPublic 25,Safety) 2026) (Patron Prior to Substitute—Delegate Cherry) House Amendments in [ ] - February 12, 2026 A BILL to amend and reenact § 19.2-354.1 of the Code of Virginia, relating to deferred or installment payment agreements;

outstanding court-assessed fines, costs,fees, forfeitures,taxes, or penalties.costs.

E 1.

N A.

"Deferred payment agreement" means an agreement in which no installment payments are required and G R the defendant agrees to pay the full amount of the fines and costs at the end of the agreement's stated term.Sterm. "Fines and costs" means all fines, court costs, forfeitures, and penalties assessed in any case by a singlE court against a defendant for the commission of any crime or traffic infraction.

"Fines and costs" includesmeans Nall restitutionfines, unlesscourt thecosts, courtforfeitures, ordersand penalties assessed in any case by a separatesinglO paymentcourt scheduleagainst a defendant for restitution.the commission of any crime or traffic infraction.

"Installment"Fines paymentand agreement"costs" meansincludes anrestitution agreementunless in which the defendantcourt agreesorders toa makeseparate monthlypayment orschedule Afor otherrestitution. periodic payments until the fines and costs are paid in full.

TS "Modified"Installment deferred payment agreement" means aan deferred payment agreement in which the defendant also agrees to use best efforts to make monthly or S other periodic payments.payments until the fines and costs are paid in full.

"Modified deferred payment agreement" means a deferred payment agreement in which the defendant also E B.agrees to use best efforts to make monthly or other periodic payments.

TheD courtB. shall give a defendant ordered to pay fines and costs written notice of the availability of deferred, modified deferred, and installment payment agreements and, if a community service program has been established, the availability of earning credit toward discharge of fines and costs through the S performance of community service work.

The court shall offergive anya defendant theordered opportunity to enterpay intofines aand Ucosts deferredwritten paymentnotice agreement,of modifiedthe deferredavailability paymentof agreement,deferred, ormodified deferred, and installment payment agreement.agreements and, if a community service program has been established, the availability of earning credit toward discharge of fines and costs through the performance of community service work.

The court shall offer any defendant the opportunity to enter into a deferred payment agreement, modified deferred payment agreement, or installment payment agreement.

The court shall not deny a defendant the opportunity to enter into a deferred, modified deferred, or B installment payment agreement solely (i) because of the category of offense for which the defendant was convicted or found not innocent, (ii) because of the total amount of all fines and costs, (iii) because the SH 29 defendant previously defaulted under the terms of a payment agreement, (iv) because the fines and costs haveThave 1 been referred for collections pursuant to § 19.2-349, or (v) because the defendant has not established a I2 payment history.

TE D.

In determining the length of time to pay under a deferred, modified deferred, or installment payment H agreement and the amount of the payments, the court shall take into account the defendant's financial U1 resources and obligations, including any fines and costs owed by the defendant in other courts.

If the T defendant requests to enter into an installment agreement, the court may offer installment payments of (i) $25 :36 per month, or a higher amount, depending on a defendant's ability to pay, which the court shall determine 37 using a written financial statement, on a form developed by the Executive Secretary of the Supreme Court, / 38 setting forth the defendant's financial resources and obligations or by conducting an oral examination of the 39 defendant to determine his financial resources and obligations or (ii) less than $25 per month if the defendant 40 is determined to be indigent by the court pursuant to § 19.2-159.

36 per month, or a higher amount, depending on a defendant's ability to pay, which the court shall determine E 37 using a written financial statement, on a form developed by the Executive Secretary of the Supreme Court, 38 setting forth the defendant's financial resources and obligations or by conducting an oral examination of the 39 defendant to determine his financial resources and obligations or (ii) less than $25 per month if the defendant 40 is determined to be indigent by the court pursuant to § 19.2-159.

H F.

All fines and costs that a defendant owes for all cases in any single court may be incorporated into onBone payment agreement, unless otherwise ordered by the court in specific cases.

A payment agreement shall 1 include only those outstanding fines and costs for which the limitations period set forth in § 19.2-341 has n4tnot run.

S G.

1 H.

A court may require a down payment to HB1142S1HB1142EH1 2 of 2 enter into a subsequent payment agreement, provided that the down payment required to enter into a subsequent payment agreement shall not exceed (i) if the fines and costs owed are $500 or less, 10 percent of such amount or (ii) if the fines and costs owed are more than $500, five percent of such amount or $50, whichever is greater.

For any defendant sentenced to an active term of incarceration and ordered to pay any fine, cost, forfeiture, or penalty related to the charge for which such defendant iswas incarceratedincarcerated, or any other offensecharge for which such defendant was sentenced on the same day, the court shall enter such defendant into a deferred payment agreement for such fines, costs, forfeitures, or penalties.

The due date for such deferred payment agreement shall be set no earlier than 180 days after the terminationdefendant's ofscheduled release from incarceration on the defendant'scharges activefor periodwhich ofsuch incarcerationdefendant imposedwas bysentenced on the court.same day.

Notwithstanding any other provisionprovisions of law, the period of limitations provided by § 19.2-341 for payment of such fines, costs, forfeitures, or penalties shall start to run on the due date for such deferred payment agreement.

[ 2.

That the provisions of this act shall become effective January 1, 2027.