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HB1086 • 2026

Virginia Public Procurement Act; preference for Virginia goods, school nutrition programs, sunset.

An Act to amend and reenact § 2.2-4324, as it is currently effective, of the Code of Virginia and to amend the second enactment of Chapter 749 and the second enactment of Chapter 782 of the Acts of Assembly of 2024, relating to Virginia Public Procurement Act; preference for Virginia goods; school nutrition programs; sunset extension.

Education
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Laufer
Last action
2026-04-06
Official status
Acts of Assembly Chapter
Effective date
Not listed

Plain English Breakdown

The official source material does not mention maintaining a list of other states' preference rules, which was included in the candidate explanation.

Virginia Public Procurement Act; Preference for Virginia Goods, School Nutrition Programs

This law gives preference to bids from Virginia residents when buying agricultural products for school nutrition programs and extends the expiration date of certain provisions related to Virginia goods in procurement.

What This Bill Does

  • Gives priority to bids from Virginia residents when purchasing agricultural products intended for school nutrition programs if they are within 20% of the lowest bid.
  • Extends the expiration date of preference rules for Virginia goods in procurement from July 1, 2027, to July 1, 2028.

Who It Names or Affects

  • Schools and other public bodies that buy agricultural products for school nutrition programs.
  • Manufacturers who bid on contracts with Virginia's government.

Terms To Know

Sunset
The date when a law or part of a law stops being in effect unless it is renewed.
Responsive and Responsible Bidders
Bidders who meet all the requirements set by the government for a contract and are financially stable enough to complete the work.

Limits and Unknowns

  • The law does not specify what happens if no Virginia resident matches the price of the lowest bid.
  • It is unclear how this will affect federal funding eligibility for certain projects or procurements.

Bill History

  1. 2026-04-06 Governor

    Approved by Governor-Chapter 262 (effective 7/1/2026)

  2. 2026-04-06 Governor

    Approved by Governor-Chapter 262 (effective 7/1/2026)

  3. 2026-04-06 Governor

    Acts of Assembly Chapter text (CHAP0262)

  4. 2026-03-10 House

    Enrolled Bill communicated to Governor on March 10, 2026

  5. 2026-03-10 Governor

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

  6. 2026-03-09 House

    Signed by Speaker

  7. 2026-03-09 Senate

    Signed by President

  8. 2026-03-09 House

    Enrolled

  9. 2026-03-09 House

    Bill text as passed House and Senate (HB1086ER)

  10. 2026-03-09 House

    Fiscal Impact Statement from Department of Planning and Budget (HB1086)

  11. 2026-03-02 Senate

    Read third time

  12. 2026-03-02 Senate

    Passed Senate Block Vote (40-Y 0-N 0-A)

  13. 2026-02-27 Senate

    Rules suspended

  14. 2026-02-27 Senate

    Passed by for the day

  15. 2026-02-27 Senate

    Constitutional reading dispensed Block Vote (on 2nd reading) (37-Y 0-N 0-A)

  16. 2026-02-27 Senate

    Passed by for the day Block Vote (Voice Vote)

  17. 2026-02-25 General Laws and Technology

    Reported from General Laws and Technology (15-Y 0-N)

  18. 2026-02-12 Senate

    Constitutional reading dispensed (on 1st reading)

  19. 2026-02-12 General Laws and Technology

    Referred to Committee on General Laws and Technology

  20. 2026-02-11 House

    Read third time and passed House Block Vote (96-Y 0-N 0-A)

  21. 2026-02-11 House

    Reconsideration of passage agreed to by House

  22. 2026-02-11 House

    Passed House Block Vote (98-Y 0-N 0-A)

  23. 2026-02-10 House

    Read second time and engrossed

  24. 2026-02-09 House

    Read first time

  25. 2026-02-05 General Laws

    Reported from General Laws (21-Y 0-N)

  26. 2026-02-03 Procurement/Open Government

    Subcommittee recommends reporting (10-Y 0-N)

  27. 2026-01-26 Procurement/Open Government

    Assigned HGL sub: Procurement/Open Government

  28. 2026-01-26 House

    Fiscal Impact Statement from Department of Planning and Budget (HB1086)

  29. 2026-01-14 House

    Prefiled and ordered printed; Offered 01-14-2026 26103267D

  30. 2026-01-14 General Laws

    Referred to Committee on General Laws

Official Summary Text

Virginia Public Procurement Act; preference for Virginia goods; school nutrition programs; sunset extension.
Provides that, in the case of procurement of goods by manufacturers, if the lowest responsive and responsible bidder is not a resident of Virginia and the bid is for agricultural products that are produced or processed in Virginia and intended for school nutrition programs, including fresh fruits, vegetables, and dairy products, and is within 20 percent of such bid, such bidder for agricultural products that are produced or processed in Virginia shall be granted the option to match the price of the lowest responsive and responsible bidder. The bill amends provisions of law providing preference for Virginia goods in procurement that are set to expire on July 1, 2027. The bill extends the sunset date of these provisions to July 1, 2028.

Current Bill Text

Read the full stored bill text
An Act to amend and reenact §
2.2-4324
, as it is currently effective, of the Code of Virginia and to amend the second enactment of Chapter 749 and the second enactment of Chapter 782 of the Acts of Assembly of 2024, relating to Virginia Public Procurement Act; preference for Virginia goods; school nutrition programs; sunset extension.
Be it enacted by the General Assembly of Virginia:
1. That §
2.2-4324
, as it is currently effective, of the Code of Virginia is amended and reenacted as follows:
§
2.2-4324
. (Effective until July 1, 2027) Preference for Virginia goods, U.S. goods, and Virginia residents.
A. In the case of a tie bid, preference shall first be given to goods produced in Virginia and preference shall then be given to goods produced in the United States; otherwise the tie shall be decided by lot.
B. In the case of procurement of goods by manufacturers:
1. If
(i)
the lowest responsive and responsible bidder is not a resident of Virginia and
(ii)
(i)
the bid of any Virginia resident is within 10 percent of such bid
,
or (ii) the bid is for agricultural products that are produced or processed in Virginia and intended for school nutrition programs, including fresh fruits, vegetables, and dairy products, and is within 20 percent of such bid,
the lowest responsive and responsible bidder
that is a Virginia resident
pursuant to clause (i) or (ii)
shall be granted the option to match the price of the lowest responsive and responsible bidder.
2. If the lowest responsive and responsible bidder is a resident of a state other than Virginia and such state under its laws allows a resident of that state a percentage preference or price-matching preference for the procurement of goods, a like preference shall be granted to responsive and responsible bidders who are residents of Virginia.
3. An eligible bidder that is a Virginia resident shall be granted the greater of either preference pursuant to this subsection.
C. Whenever the lowest responsive and responsible bidder is a resident of any other state and such state under its laws allows a resident contractor of that state a percentage preference, a like preference shall be granted to the lowest responsive and responsible bidder who is a resident of Virginia and is the next lowest bidder. If the lowest responsive and responsible bidder is a resident of any other state and such state under its laws allows a resident contractor of that state a price-matching preference, a like preference shall be granted to responsive and responsible bidders who are residents of Virginia. If the lowest bidder is a resident contractor of a state with an absolute preference, the bid shall not be considered. The Department of General Services shall post and maintain an updated list on its website of all states with an absolute preference for their resident contractors and those states that allow their resident contractors a percentage preference, including the respective percentage amounts. For purposes of compliance with this section, all public bodies may rely upon the accuracy of the information posted on this website.
D. Notwithstanding the provisions of subsections A, B, and C, in the case of a tie bid in instances where goods are being offered, and existing price preferences have already been taken into account, preference shall be given to the bidder whose goods contain the greatest amount of recycled content.
E. For the purposes of this section, a firm or corporation shall be deemed to be a resident of Virginia if such firm or corporation has been organized pursuant to Virginia law or maintains a principal place of business within Virginia.
F. To the extent that this section conflicts with federal law or regulations and application of this section to a project or procurement would render a public body ineligible to receive federal funds for such project or procurement, such project or procurement shall be exempt from the provisions of this section.
2. That the second enactment of Chapter 749 and the second enactment of Chapter 782 of the Acts of Assembly of 2024 are amended and reenacted as follows:
2. That the provisions of this act shall expire on July 1,
2027
2028
.