VirginiaSB4312026 Regular SessionSenate

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

Sponsored By: Lamont Bagby (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 HB 1040.

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Bill Overview

Analyzed Economic Effects

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

Health board gets new service limits

For Authority board members appointed on or after July 1, 2026, terms last four years. Members cannot serve more than two consecutive full terms and must wait one year afterward before reappointment. Someone filling an unfinished term can still serve two full terms afterward. The General Assembly must confirm appointments; members serving because of their jobs serve while holding those offices. Every two years, the board elects a chair and vice-chair who each have at least two years of board service. The university president, university or Authority employees, university board of visitors members, and lawmakers cannot chair the board. The board can choose a secretary and treasurer, with one person allowed to hold both jobs. It can create committees, delegate powers within legal limits, and set policies and bylaws consistent with law. A majority of the board forms a quorum, and actions require a majority of those present. State conflict-of-interest rules apply to members and Authority employees. The Authority pays members’ compensation under state law and reimburses reasonable and necessary expenses.

Smaller, more independent university health board

The law reduces the Virginia Commonwealth University Health System Authority board from 21 members to 16. There are 13 appointed members and three members who serve because of their jobs. The Governor appoints five, the House Speaker appoints four, and the Senate Rules Committee appoints three. The university rector appoints one university board of visitors member, who must remain on that board. Each of the first three appointing groups must choose one university physician-faculty member with MCV Hospitals privileges throughout their term. The university’s Senior Vice-President for Health Sciences and the Authority’s chief executive officer have votes; the university president does not. At least nine members must have no direct university or Authority ties beyond board service. Appointed members, except the university board representative, must collectively cover business, commercial real estate, finance, health system management, and legal affairs. Physician-faculty members serving on June 30, 2026, can finish their existing terms despite the changed membership rules.

Two boards share health chief decisions

The Authority board and university board of visitors jointly select and remove the Authority’s chief executive officer and set salary and job terms. Each board votes separately at a joint meeting; approval requires a majority present and voting on each board. When they disagree, each board appoints a three-member committee, excluding the person serving on both boards. Agreement by a majority present and voting on each committee is reported to both boards and becomes binding. If the committees cannot agree on removal within 30 days of appointment, no further removal action is taken. If they cannot agree on selection or job terms within 30 days, the process restarts until agreement. The university president has no fallback power to decide. The university’s Senior Vice-President for Health Sciences, including a successor holding the equivalent academic and administrative role, cannot be chief executive. That university officer must regularly communicate and work with the chief executive. The chief executive works full time directing Authority operations under board policies and direction. The chief executive serving on June 30, 2026, stays until a successor is appointed through the new process.

Sponsors & Cosponsors

Sponsor

  • Lamont Bagby

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 241 • No: 9

House vote • 2/23/2026

Passed House

Yes: 89 • No: 6 • Other: 2

House vote • 2/18/2026

Reported from Education

Yes: 17 • No: 3 • Other: 1

Senate vote • 2/10/2026

Read third time and passed Senate Block Vote

Yes: 40 • No: 0

Senate vote • 2/10/2026

Constitutional reading dispensed Block Vote (on 3rd reading)

Yes: 40 • No: 0

Senate vote • 2/10/2026

Engrossed by Senate Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/9/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/9/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote • 2/6/2026

Reported from Rules

Yes: 15 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0445)

    4/8/2026Governor
  2. Approved by Governor-Chapter 445 (effective 7/1/2026)

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

    3/10/2026Governor
  4. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026Senate
  5. Fiscal Impact Statement from Department of Planning and Budget (SB431)

    2/25/2026Senate
  6. Bill text as passed Senate and House (SB431ER)

    2/24/2026Senate
  7. Enrolled

    2/24/2026Senate
  8. Signed by President

    2/24/2026Senate
  9. Signed by Speaker

    2/24/2026House
  10. Passed House (89-Y 6-N 2-A)

    2/23/2026House
  11. Read third time

    2/23/2026House
  12. Read second time

    2/20/2026House
  13. Reported from Education (17-Y 3-N 1-A)

    2/18/2026House
  14. Read first time

    2/13/2026House
  15. Referred to Committee on Education

    2/13/2026House
  16. Placed on Calendar

    2/13/2026House
  17. Read third time and passed Senate Block Vote (40-Y 0-N 0-A)

    2/10/2026Senate
  18. Constitutional reading dispensed Block Vote (on 3rd reading) (40-Y 0-N 0-A)

    2/10/2026Senate
  19. Engrossed by Senate Block Vote (Voice Vote)

    2/10/2026Senate
  20. Rules suspended

    2/10/2026Senate
  21. Read second time

    2/10/2026Senate
  22. Passed by for the day Block Vote (Voice Vote)

    2/9/2026Senate
  23. Constitutional reading dispensed Block Vote (on 1st reading) (40-Y 0-N 0-A)

    2/9/2026Senate
  24. Passed by for the day

    2/9/2026Senate
  25. Rules suspended

    2/9/2026Senate

Bill Text

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