VirginiaHB10402026 Regular SessionHouseWALLET

VCU Health System Authority; changes relating to board of directors and chief executive officer.

Sponsored By: Betsy B. Carr (Democratic)

Signed by Governor

Summary

Virginia Commonwealth University Health System Authority; board of directors; chief executive officer. Makes several changes relating to the board of directors and the chief executive officer of the Virginia Commonwealth University Health System Authority (the Authority), including (i) reducing from 19 to 13 the number of appointed members on the boards of directors and adding the chief executive officer of the Authority as an ex officio member with voting privileges, thereby reducing from 21 to 16 the total number of board members; (ii) changing from voting to nonvoting the nature of the membership of the President of Virginia Commonwealth University (the University) on the board of directors and prohibiting rather than requiring, as under current law, the President of the University from serving as chairman of the board of directors; (iii) lengthening the terms of all members of the board of directors from three years to four years; (iv) requiring the biennial election of a chairman and vice-chairman of the board of directors, requiring such chairman and vice-chairman to have served for at least two years on the board of directors, and prohibiting any employee of the University, employee of the Authority, member of the board of visitors of the University, or legislative member from serving as chairman; (v) providing that no further action shall be taken if a majority of each of the three-member committees appointed by the board of directors of the Authority and the board of visitors of the University do not agree on the removal of the chief executive officer of the Authority within 30 days of the appointment of the committees by each board; and (vi) providing that in the event that a majority of the members of each committee do not agree on the selection or conditions of appointment of the chief executive officer within 30 days of the appointment of the committees by each board, then the process set forth in statute shall be repeated until such selection has been made or such conditions of appointment have been determined. Current law requires the President of the University to make a binding decision in the event of any such disagreement. This bill is identical to SB 431.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

Smaller governing board for university hospitals

The law reduces the Virginia Commonwealth University Health System Authority board from 21 to 16 members. The board changes apply to people appointed on or after July 1, 2026. The Governor appoints five members, the House Speaker four, the Senate Committee on Rules three, and the university rector one. The Governor's appointees and the rector's appointee must be nonlegislative citizens. Each of the first three appointing authorities must name one physician-faculty member. These doctors must remain university faculty with hospital privileges at MCV Hospitals. Faculty physicians submit candidates through the senior health sciences officer, with at least two names per vacancy. The rector's appointee must remain on the university's board of visitors. Other appointees must collectively bring business, commercial real estate, finance, health system management, or legal expertise. A majority of the full board must have no direct university or Authority ties beyond board service. The senior health sciences officer and Authority chief executive have voting seats; the university president has a nonvoting seat. Appointments require General Assembly confirmation. Appointed members serve four-year terms, with a two-consecutive-term limit and a one-year wait before returning. Someone filling an unfinished term may then serve two full consecutive terms. Physician-faculty members serving on June 30, 2026, can finish their current terms. Members serving because of their jobs remain only while holding those jobs. Every two years, members elect a chair and vice chair with at least two years of board service. The chair cannot be the university president, a university or Authority employee, a board-of-visitors member, or a legislator. The board elects a secretary and treasurer, and one person may hold both roles. It can appoint staff and committees, delegate powers, and adopt rules consistent with law. It must meet at least four times yearly. A majority of members forms a quorum, and a majority present approves actions. The two voting officials and rector's appointee cannot vote on matters that breach their duties to either institution. State conflict-of-interest rules apply to members and Authority employees. Members can be removed for misconduct, incompetence, or gross neglect. The Authority pays member compensation and reasonable, necessary expenses under state rules. These changes do not directly change household benefits or fees.

University shares control of hospital chief

The Health System Authority board and the university's board of visitors jointly choose or remove the chief executive officer. They also set appointment terms, including salary. Decisions require a joint meeting and approval from a majority present and voting on each board. The university's senior health sciences officer, or equivalent officer, cannot also serve as the Authority's chief executive. That officer must regularly communicate and work with the chief executive. The chief executive must work full time supervising and running the Authority. When the boards disagree, each appoints a three-member committee from its own members. The person serving on both boards cannot serve on either committee. Each committee must approve a decision by a majority present and voting at a joint committee meeting. An agreement binds both boards. If the committees cannot agree on removal within 30 days of their appointment, no further action is taken. For selection or appointment terms, disagreement after 30 days requires repeating the board process and, when needed, the committee process. That process repeats until agreement. The chief executive serving on June 30, 2026, can stay until a successor is appointed through the new process. The law does not directly change patient charges or household benefits.

Sponsors & Cosponsors

Sponsor

  • Betsy B. Carr

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 246 • No: 6

Senate vote • 3/3/2026

Passed Senate Block Vote

Yes: 40 • No: 0

Senate vote • 3/2/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 39 • No: 0

Senate vote • 3/2/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/27/2026

Reported from Rules

Yes: 14 • No: 0

Senate vote • 2/19/2026

Rereferred from Education and Health to Rules

Yes: 13 • No: 0

House vote • 2/12/2026

Read third time and passed House

Yes: 91 • No: 5 • Other: 2

House vote • 2/6/2026

Reported from Appropriations

Yes: 22 • No: 0

House vote • 2/4/2026

Subcommittee recommends reporting

Yes: 7 • No: 0

House vote • 1/28/2026

Reported from Education and referred to Appropriations

Yes: 20 • No: 1

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0444)

    4/8/2026Governor
  2. Approved by Governor-Chapter 444 (effective 7/1/2026)

    4/8/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/14/2026Governor
  4. Enrolled Bill communicated to Governor on March 14, 2026

    3/14/2026House
  5. Fiscal Impact Statement from Department of Planning and Budget (HB1040)

    3/10/2026House
  6. Bill text as passed House and Senate (HB1040ER)

    3/10/2026House
  7. Enrolled

    3/10/2026House
  8. Signed by President

    3/10/2026Senate
  9. Signed by Speaker

    3/10/2026House
  10. Passed Senate Block Vote (40-Y 0-N 0-A)

    3/3/2026Senate
  11. Read third time

    3/3/2026Senate
  12. Passed by for the day Block Vote (Voice Vote)

    3/2/2026Senate
  13. Constitutional reading dispensed Block Vote (on 2nd reading) (39-Y 0-N 0-A)

    3/2/2026Senate
  14. Rules suspended

    3/2/2026Senate
  15. Reported from Rules (14-Y 0-N)

    2/27/2026Senate
  16. Rereferred from Education and Health to Rules (13-Y 0-N)

    2/19/2026Senate
  17. Referred to Committee on Education and Health

    2/13/2026Senate
  18. Constitutional reading dispensed (on 1st reading)

    2/13/2026Senate
  19. Read third time and passed House (91-Y 5-N 2-A)

    2/12/2026House
  20. Read second time and engrossed

    2/11/2026House
  21. Read first time

    2/10/2026House
  22. Reported from Appropriations (22-Y 0-N)

    2/6/2026House
  23. Subcommittee recommends reporting (7-Y 0-N)

    2/4/2026House
  24. Reported from Education and referred to Appropriations (20-Y 1-N)

    1/28/2026House
  25. Fiscal Impact Statement from Department of Planning and Budget (HB1040)

    1/28/2026House

Bill Text

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