VirginiaHB5052026 Regular SessionHouseWALLET

Counties, cities, & towns; members of governing body, continuing personal interest in transactions.

Sponsored By: John Chilton McAuliff (Democratic)

Signed by Governor

Summary

Local government; certain towns; suspension of officers, study, remedial plan, and meeting requirements. Provides that any member of a governing body in any locality, who has been employed by any governmental agency that is a component part of and that is subject to the ultimate control of the governing body of which he is a member, is deemed to have continuing personal interest in that agency for a period of two years following the termination of such employment. The bill also requires the court, in a criminal proceeding against an officer of any town in Planning District 8 with a population between 8,000 and 10,000 alleging the commission of a felony offense, to enter an order suspending the officer pending the resolution of such proceeding and any related proceeding for the officer's removal. The bill requires any such town to also procure a study by a public institution of higher education to evaluate the condition and status of the town's debt, infrastructure, utilities, and other significant liability risks. Such town is required to adopt a plan consistent with the study to address such town's needs, as identified in the study, in a fiscally appropriate manner that does not jeopardize the town's bond rating. The bill also prohibits the town council of any such town from voting on matters that have not been properly published at least three days prior to the vote as part of a town council agenda or otherwise approved as additional agenda items or as amendments to existing agenda items by a three-fourths vote of all the members of the council at the start of the meeting. The bill requires that any full-time town manager of such town must be a resident of the Commonwealth unless the town council has waived such requirement by a majority vote. This bill is identical to SB 648.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 0 benefits, 2 costs, 3 mixed.

Former employees face longer conflict rules

Beginning April 22, 2026, local governing body members keep a legal personal interest in their former agency for two years. The two years start when their employment ends. This applies when the agency is part of, and under the ultimate control of, that governing body. The rule affects how conflict-of-interest law treats their participation in agency matters.

Full-time town managers must live in Virginia

Beginning April 22, 2026, full-time town managers in covered towns must live in Virginia. This applies to Planning District 8 towns with 8,000–10,000 residents in the latest U.S. decennial census. The town council can waive the residency rule by majority vote. The rule expires July 1, 2028.

Town councils face stronger resident oversight

Beginning April 22, 2026, covered town councils may vote only on agenda matters published at least three days earlier. This covers Planning District 8 towns with 8,000–10,000 residents in the latest U.S. decennial census. At the meeting's start, three-fourths of all council members may approve added or changed agenda items. Residents of the county containing the town can challenge violations of these rules or Virginia Code § 2.2-3112. Cases go to the county general district court, receive priority, and provide attorney fees to residents who win. These rules expire July 1, 2028.

Town officers face suspension over felonies

Beginning April 22, 2026, courts must suspend town officers facing criminal proceedings that allege a felony. This applies in Planning District 8 towns with 8,000–10,000 residents in the latest U.S. decennial census. Suspension lasts pending resolution of the criminal case and any related proceedings under the specified election laws. Courts may end suspension after acquittal, dropped charges, or dismissal, including deferred dismissal. Courts may appoint a suitable temporary replacement. This rule expires July 1, 2028.

Towns must study risks and plan

Beginning April 22, 2026, covered towns must arrange a study of debt, infrastructure, utilities, and other major liability risks. This covers Planning District 8 towns with 8,000–10,000 residents in the latest U.S. decennial census. A public college or university with at least 15,000 students must conduct the study. It must consult the chief administrative officer of a Planning District 8 locality with at least 500,000 residents. That population also uses the latest U.S. decennial census. The study must finish by July 1, 2027, and provide recommendations, including potential changes to the town charter. Towns receiving the study must adopt a financially sound plan consistent with it that does not jeopardize their bond rating. These requirements expire July 1, 2028; no study cost or household tax change is specified.

Sponsors & Cosponsors

Sponsor

  • John Chilton McAuliff

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 376 • No: 254

House vote • 4/22/2026

House concurred in Governor's recommendation

Yes: 69 • No: 31

Senate vote • 4/22/2026

Senate concurred in Governor's recommendation

Yes: 19 • No: 19

Senate vote • 3/13/2026

Conference report agreed to by Senate

Yes: 21 • No: 18

House vote • 3/12/2026

Conference report agreed to by House

Yes: 69 • No: 29

Senate vote • 3/6/2026

Senate insisted on amendments Block Vote

Yes: 40 • No: 0

House vote • 3/4/2026

Senate substitute rejected by House

Yes: 0 • No: 94

Senate vote • 3/2/2026

Passed Senate with substitute

Yes: 23 • No: 17

Senate vote • 3/2/2026

Privileges and Elections Substitute agreed to

Yes: 0 • No: 0

Senate vote • 2/26/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/26/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote • 2/24/2026

Reported from Privileges and Elections with substitute

Yes: 11 • No: 4

House vote • 2/17/2026

Read third time and passed House

Yes: 63 • No: 34

House vote • 2/13/2026

Reported from Privileges and Elections with substitute

Yes: 13 • No: 8

House vote • 2/9/2026

Subcommittee recommends reporting with substitute

Yes: 8 • No: 0

Actions Timeline

  1. Senate concurred in Governor's recommendation (19-Y 19-N 0-A)

    4/22/2026Senate
  2. House concurred in Governor's recommendation (69-Y 31-N 0-A)

    4/22/2026House
  3. Acts of Assembly Chapter text (CHAP1056)

    4/22/2026Governor
  4. Reenrolled bill text (HB505ER2)

    4/22/2026House
  5. Reenrolled

    4/22/2026House
  6. Approved by Governor-Chapter 1056 (effective 4/22/2026)

    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 House

    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

    3/31/2026House
  13. Signed by Speaker

    3/31/2026House
  14. Enrolled

    3/30/2026House
  15. Enrolled

    3/30/2026House
  16. Signed by President

    3/30/2026Senate
  17. Conference report agreed to by Senate (21-Y 18-N 0-A)

    3/13/2026Senate
  18. Conference report agreed to by House (69-Y 29-N 0-A)

    3/12/2026House
  19. Conference Report released

    3/11/2026
  20. Conferees appointed by Senate

    3/10/2026Senate
  21. Senate Conferees: Rouse, Perry, Bennett-Parker

    3/10/2026Senate
  22. House Conferees: McAuliff, Reid, Cherry

    3/9/2026House
  23. Conferees appointed by House

    3/9/2026House
  24. House acceded to request

    3/9/2026House
  25. Senate insisted on amendments Block Vote (40-Y 0-N 0-A)

    3/6/2026Senate

Bill Text

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