VirginiaSB4312026 Regular SessionSenate

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

Sponsored By: Lamont Bagby (Democratic)

Became Law

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

6 provisions identified: 2 benefits, 0 costs, 4 mixed.

2026 transition and grandfathering rules

The amended board term rules apply only to people appointed on or after July 1, 2026. Physician‑faculty board members serving on June 30, 2026 can finish their terms. The person serving as CEO on June 30, 2026 stays until a successor is appointed under the new rules.

Stronger conflict of interest rules

The state conflict‑of‑interest law now applies to the Authority’s board and employees. Board‑of‑visitors appointees and voting ex officio members cannot vote when a vote would breach their fiduciary duty to the University or the Authority.

Board meetings, committees, and pay rules

The board meets at least four times each year and may hold special meetings. A majority of members is a quorum, and actions pass by a majority of those present. The board can create committees and delegate some powers to an executive committee. Legislative and citizen members receive pay and expense reimbursement, funded by the Authority. The board can hire, set pay, and remove officers, employees, and agents, including engineers, consultants, lawyers, and accountants.

New process and duties for CEO

The Authority board and VCU’s board choose, remove, and set the CEO’s salary together at a joint meeting, by a majority of each board present and voting. If they cannot agree, each names a three‑member committee to decide; if no agreement in 30 days, the University President decides and both boards must follow it. These steps repeat until a CEO is chosen or terms are set. The CEO must work full time and cannot hold another job. The CEO manages the Authority’s day‑to‑day operations.

New term limits and board leadership

Member terms are now 4 years, and vacancies are filled for the rest of the term. Members can serve two consecutive full terms and may return after a one‑year break. The board elects its chair and vice‑chair every two years, and each must have at least two years on the board. The University President cannot be chair. Appointing authorities can remove a member for malfeasance, misfeasance, incompetence, or gross neglect of duty.

Smaller, more independent VCU Health board

The board now has 16 members instead of 21. Thirteen are appointed and three are ex officio. A majority must have no other ties to VCU or the Authority. The Governor now appoints 5 members, the Speaker 4, and the rector names 1 member from the board of visitors. Physician‑faculty seats drop to 3, and those doctors must be VCU faculty with MCV Hospitals privileges. The Senior Vice‑President for Health Sciences and the CEO can vote; the University President is nonvoting. Appointed members must bring skills in business, real estate, finance, health care management, or law. For physician seats, officials consider faculty lists with at least two names per opening.

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

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 2/10/2026

Read third time and passed Senate Block Vote

Yes: 40 • No: 0

Senate vote 2/9/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 2/9/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • 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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