VirginiaHB5472026 Regular SessionHouseWALLET

Private companies providing public transportation services; employee protections.

Sponsored By: Dan I. Helmer (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 SB 731.

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Bill Overview

Analyzed Economic Effects

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

Equal pay, benefits, and job protection for transit workers

When a county or city hires a private company to run transit, the company must pay the same hourly rate a comparable local government worker gets, based on years of service. It must provide health and retirement benefits with actuarial value equal to the locality’s plans for similar workers. The company must use its own employees to provide the service, not outside subcontractors. If a new contractor takes over, it must offer jobs to current system workers with no loss of pay or benefits. If the locality later runs the system itself, it must set up collective bargaining and offer those workers jobs with no loss of pay or benefits.

Localities can start or contract transit service

Counties or cities that are not in a transit district can create, run, or contract for public transit when they find a local need and cannot reach a reasonable membership deal with a district. They may also partner with nearby transit authorities to keep service continuous between localities.

State work group on transit pay rules

The state rail and public transportation director convenes a work group with localities, transit commissions, employees, and others. The group studies how to measure equal qualifications, wage progression, and actuarial value of benefits, and how to apply the rules in multi‑locality systems. It reports recommendations by December 1, 2026 to the House Labor and Commerce and Senate Local Government chairs.

Who is exempt and when rules start

Existing collective bargaining agreements stay in force, even if they pay less or have lower-value benefits than the parity rules. The law does not cover certain services: specified Northern Virginia commuter rail, the Potomac and Rappahannock Transportation Commission, paratransit and demand‑response services under federal law, and ferries. Actions, contracts, liabilities, and rights before July 1, 2027 are not changed. Key parts only take effect if the General Assembly reenacts them in 2027.

Sponsors & Cosponsors

Sponsor

  • Dan I. Helmer

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 308 • No: 163

House vote 4/22/2026

House concurred in Governor's recommendation

Yes: 64 • No: 36

Senate vote 4/22/2026

Senate concurred in Governor's recommendation

Yes: 21 • No: 18

House vote 3/6/2026

Senate substitute agreed to by House

Yes: 62 • No: 35

Senate vote 3/4/2026

Local Government Substitute agreed to

Yes: 0 • No: 0

Senate vote 3/4/2026

Passed Senate with substitute

Yes: 21 • No: 19

Senate vote 3/3/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 3/3/2026

Reported from Finance and Appropriations

Yes: 9 • No: 5

Senate vote 3/3/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote 2/23/2026

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

Yes: 8 • No: 7

House vote 2/9/2026

Read third time and passed House

Yes: 63 • No: 34

House vote 2/3/2026

Reported from Labor and Commerce

Yes: 15 • No: 7

House vote 1/29/2026

Subcommittee recommends reporting

Yes: 5 • No: 2

Actions Timeline

  1. Senate concurred in Governor's recommendation (21-Y 18-N 0-A)

    4/22/2026Senate
  2. House concurred in Governor's recommendation (64-Y 36-N 0-A)

    4/22/2026House
  3. Acts of Assembly Chapter text (CHAP1058)

    4/22/2026Governor
  4. Reenrolled bill text (HB547ER2)

    4/22/2026House
  5. Reenrolled

    4/22/2026House
  6. Approved by Governor-Chapter 1058 (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 House

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

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

    3/14/2026House
  13. Enrolled

    3/13/2026House
  14. Enrolled

    3/13/2026House
  15. Signed by President

    3/13/2026Senate
  16. Signed by Speaker

    3/13/2026House
  17. Senate substitute agreed to by House (62-Y 35-N 0-A)

    3/6/2026House
  18. Passed Senate with substitute (21-Y 19-N 0-A)

    3/4/2026Senate
  19. Local Government Substitute agreed to

    3/4/2026Senate
  20. Engrossed by Senate - committee substitute

    3/4/2026Senate
  21. Read third time

    3/4/2026Senate
  22. Passed by for the day Block Vote (Voice Vote)

    3/3/2026Senate
  23. Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

    3/3/2026Senate
  24. Rules suspended

    3/3/2026Senate
  25. Reported from Finance and Appropriations (9-Y 5-N)

    3/3/2026Senate

Bill Text

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