Legislation Details

File #: 27-1239    Name: Bad Check Fee, 2026 General Assembly, HB 177
Type: Ordinance Status: Agenda Ready
File created: 8/13/2026 In control: City Council Legislative Meeting
On agenda: 9/8/2026 Final action:
Title: Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to amend Section 3-2-301 of the Alexandria City Code related to Fees for Passing Bad Checks to the City.
Attachments: 1. 27-1239_Attachment 1 - Ordinance Cover to 3-2-301, Bad Check Fee, 2. 27-1239_Attachment 2 - Ordinance Amendment to 3-2-301, Bad Check Fee, 3. 27-1239_Attachment 3 - Va Code Section 15.2-106 HB 177 Bad Check Fee
City of Alexandria, Virginia
________________

MEMORANDUM


DATE: SEPTEMBER 2, 2026

TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL

THROUGH: JAMES F. PARAJON, CITY MANAGER

FROM: KEVIN C. GREENLIEF, DIRECTOR OF FINANCE

DOCKET TITLE:
TITLE
Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to amend Section 3-2-301 of the Alexandria City Code related to Fees for Passing Bad Checks to the City.
BODY
_________________________________________________________________

ISSUE: Consideration of an ordinance to amend Section 3-2-301 to align with legislative changes made during the 2026 Session of the Virginia General Assembly.

RECOMMENDATION: That City Council pass the proposed ordinance in Attachment 2 on first reading and schedule it for public hearing, second reading and final passage on September 19, 2026.

BACKGROUND: This City Code amendment is based on the adoption of HB 177 during the 2026 Session of the Virginia General Assembly. A copy of this legislation is provided for reference in Attachment 3.

DISCUSSION: The change to the state code is a technical amendment to clarify that Bad Check Fees apply to electronic payment orders as well as physical checks. Staff have always interpreted existing law to allow the Bad Check Fee in such cases. However, with the new legislation this interpretation is now codified, and the proposed amendment to the City Code will ensure alignment with the enabling state statute.

FISCAL IMPACT: None. This clarifying amendment simply codifies how staff have been administering City Code 3-2-301. In FY 2026, Finance collected $8,491 from 243 bad checks. The City's ordinance presently caps the local Bad Check Fee at $35. Existing state law allows for a fee of up to $50. Should the Council wish to increase the fee to the state maximum, that code amendment would generate an additional $3,659.


ATTACHMENTS:
Attachment 1 - Ordinance Cover
Attachment 2 - Proposed Ordinance Am...

Click here for full text