VirginiaSB7312026 Regular SessionSenateWALLET

Private companies providing public transportation services; employee protections.

Sponsored By: Saddam Azlan Salim (Democratic)

Became Law

Summary

Private companies providing public transportation services; employee protections; report. Requires the governing body of any county or city that contracts with a private company to provide transportation services to (i) require such company to provide any employee of such company providing such services compensation and benefits that are, at a minimum, equivalent to the compensation and benefits provided to a public employee, as defined in the bill, with a position requiring equivalent qualifications and years of service; (ii) provide transportation services through such company's own employees; and (iii) if such county or city subsequently elects to provide its own system of public transportation, adopt an ordinance or resolution providing for collective bargaining and ensure all employees of such private company are offered employment with such subsequent public transportation system without loss of compensation or benefits. The bill clarifies that the bill only applies to actions occurring on or after the effective date and excludes any action taken, contract signed, liability incurred, or right accrued prior to July 1, 2026, from the requirements. Finally, the bill directs the Director of the Department of Rail and Public Transportation to convene a work group to develop recommendations on how to implement the provisions of the bill and requires the work group to report its findings and recommendations to the Chairs of the House Committee on Labor and Commerce and Senate Committee on Local Government by November 1, 2026. This bill is identical to HB 547.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Equal pay and benefits for transit workers

When a county or city hires a private company to run transit, the contract must require equal pay. Each worker must be paid the same hourly rate as a comparable public employee with similar years of service and wage steps. Health and retirement benefits must be at least actuarially equal to public employee plans. The contractor must provide service with its own employees, not by passing core work to others.

Job protections when transit operators change

If a new private company takes over a locality’s transit, it must offer jobs to all workers from the prior operator with no loss of pay or benefits. If the county or city brings transit in-house, it must offer jobs to all contractor employees with no loss of pay or benefits. In that case, the locality must also adopt a collective bargaining ordinance if it has not already.

Localities can run transit service

Counties or cities that are not in a transportation district can run or hire out public transit. They must find there is a need and that joining a district is not reasonably possible. They can also contract with nearby transit authorities to keep service continuous across local borders.

When transit protections apply and exceptions

Existing collective bargaining agreements stay in force even if they pay less or have different benefits. The law does not apply to commuter rail run by the Northern Virginia Transportation District Commission, the Potomac and Rappahannock Transportation District Commission, paratransit or demand-responsive services under federal law, or any ferry service. Actions, contracts, liabilities, or rights before July 1, 2027 are not affected. Some parts of the law do not take effect unless the General Assembly reenacts them in 2027.

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Sponsors & Cosponsors

Sponsor

  • Saddam Azlan Salim

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 276 • No: 150

Senate vote 4/22/2026

Senate concurred in Governor's recommendation

Yes: 21 • No: 18

House vote 4/22/2026

House concurred in Governor's recommendation

Yes: 64 • No: 34

Senate vote 3/10/2026

Counties, Cities and Towns Substituteagreed to by Senate

Yes: 21 • No: 19

House vote 3/9/2026

Passed House with substitute with amendments

Yes: 62 • No: 35

House vote 3/4/2026

Reported from Appropriations

Yes: 15 • No: 7

House vote 2/27/2026

Reported from Counties, Cities and Towns with substitute and referred to Appropriations

Yes: 15 • No: 6

Senate vote 2/16/2026

Read third time and passed Senate

Yes: 20 • No: 19

Senate vote 2/13/2026

Committee substitute agreed to (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/12/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/12/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 2/11/2026

Reported from Finance and Appropriations

Yes: 10 • No: 5

Senate vote 2/9/2026

Reported from Local Government with substitute and rereferred to Finance and Appropriations

Yes: 8 • No: 7

Actions Timeline

  1. House concurred in Governor's recommendation (64-Y 34-N 0-A)

    4/22/2026House
  2. Senate concurred in Governor's recommendation (21-Y 18-N 0-A)

    4/22/2026Senate
  3. Acts of Assembly Chapter text (CHAP1026)

    4/22/2026Governor
  4. Reenrolled bill text (SB731ER2)

    4/22/2026Senate
  5. Reenrolled

    4/22/2026Senate
  6. Approved by Governor-Chapter 1026 (effective 7/1/2026)

    4/22/2026Governor
  7. Signed by President

    4/22/2026Senate
  8. Signed by Speaker

    4/22/2026House
  9. Governor's recommendation adopted

    4/22/2026Governor
  10. Governor's recommendation received by Senate

    4/13/2026Governor
  11. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/31/2026Governor
  12. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026Senate
  13. Signed by Speaker

    3/31/2026House
  14. Bill text as passed Senate and House (SB731ER)

    3/30/2026Senate
  15. Enrolled

    3/30/2026Senate
  16. Signed by President

    3/30/2026Senate
  17. Counties, Cities and Towns Substituteagreed to by Senate

    3/10/2026Senate
  18. Passed House with substitute with amendments (62-Y 35-N 0-A)

    3/9/2026House
  19. Engrossed by House - committee substitute as amended

    3/9/2026House
  20. Delegate Helmer Floor amendments agreed to

    3/9/2026House
  21. committee substitute agreed to

    3/9/2026House
  22. Read third time

    3/9/2026House
  23. Floor Offered

    3/9/2026House
  24. Read second time

    3/6/2026House
  25. Reported from Appropriations (15-Y 7-N)

    3/4/2026House

Bill Text

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