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Bill

HB 177

Fee for passing bad checks to localities; payment order not paid by recipient.

2026 Regular Session Introduced by Bonita Anthony

Virginia bill authorizes local governments to charge fees when checks submitted to them bounce, enabling cost recovery from bad check writers.

Approved by Governor-Chapter 86 (effective 7/1/2026)
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WeVote Research Nonpartisan
Bill Summary · HB 177

Legislative bill overview

HB 177 establishes a fee mechanism for localities when checks passed to them are not honored by the recipient's bank. The bill appears to address situations where local governments receive bad checks and creates a structure for recovering costs associated with processing these failed payments.

Why is this important

Local governments rely on timely, reliable payment collection for essential services and operations. Bad checks create administrative burdens, accounting complications, and cash flow disruptions. This bill directly affects how localities can recoup losses from insufficient funds or closed account situations.

Potential points of contention

  • Fee structure clarity: The bill's language regarding what constitutes a "bad check" and how fees are calculated or capped isn't detailed in the summary, raising questions about proportionality
  • Consumer impact: Individuals and businesses writing bad checks would face additional fees beyond bank penalties, potentially creating cumulative financial burdens
  • Collection feasibility: The practical enforcement mechanism for collecting these locality-imposed fees from check writers is unclear, potentially limiting real-world effectiveness

Compiled from official sources — confirm details with the bill’s official record.

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