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HB1507 • 2026

Fraud and Abuse Whistle Blower Protection Act; Auditor of Public Accounts.

<p class=ldtitle>A BILL to amend and reenact § 2.2-3010 of the Code of Virginia and to amend the Code of Virginia by adding sections numbered 2.2-3009.1, 2.2-3013.1, and 30-134.1, relating to Fraud and Abuse Whistle Blower Protection Act; Auditor of Public Accounts.</p>

Labor
Enacted

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

Sponsor
Phillips
Last action
2026-02-10
Official status
Continued
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Whistleblower Protection for Fraud and Abuse

This law adds the Auditor of Public Accounts as a reporting authority under Virginia's Fraud and Abuse Whistle Blower Protection Act, requires local governments to inform employees about their rights to report suspected fraud or abuse, and grants the Auditor power to investigate local government accounts.

What This Bill Does

  • Adds the Auditor of Public Accounts to the list of people who can receive reports from whistleblowers under Virginia's Fraud and Abuse Whistleblower Protection Act.
  • Requires local governments to give written notice to employees about their rights to report suspected fraud or abuse, including contact information for reporting authorities.
  • Requires local governments to post information about whistleblower rights in visible places like employee websites and bulletin boards.
  • Gives the Auditor of Public Accounts the power to investigate local government accounts if needed under the Whistleblower Protection Act.

Who It Names or Affects

  • Whistleblowers who report fraud or abuse
  • Local government employees
  • The Auditor of Public Accounts

Terms To Know

Appropriate authority
A person or organization that can receive reports about suspected fraud, waste, or abuse.
Whistleblower
An employee who reports wrongdoing or abuse in the workplace.

Limits and Unknowns

  • The bill does not specify how local governments will implement these new requirements.
  • It is unclear what specific actions local governments must take to ensure compliance with the notice and posting requirements.

Bill History

  1. 2026-02-10 General Laws

    Continued to 2027 in General Laws (Voice Vote)

  2. 2026-02-05 House

    Fiscal Impact Statement from Department of Planning and Budget (HB1507)

  3. 2026-02-05 Professions/Occupations and Administrative Process

    Subcommittee recommends continuing to 2027 (Voice Vote)

  4. 2026-02-02 Professions/Occupations and Administrative Process

    Assigned HGL sub: Professions/Occupations and Administrative Process

  5. 2026-01-23 House

    Presented and ordered printed 26105630D

  6. 2026-01-23 General Laws

    Referred to Committee on General Laws

Official Summary Text

Fraud and Abuse Whistle Blower Protection Act; Auditor of Public Accounts.
Adds the Auditor of Public Accounts to the definition of "appropriate authority" for purposes of whistle blower reporting pursuant to the Fraud and Abuse Whistle Blower Protection Act. The bill also requires additional notice and posting requirements related to the Act for local governments. Finally, the bill grants authority to the Auditor of Public Accounts to perform any type of audit, review, or investigation of the accounts and records of a locality that may be required pursuant to the Act.

Current Bill Text

Read the full stored bill text
A BILL to amend and reenact §
2.2-3010
of the Code of Virginia and to amend the Code of Virginia by adding sections numbered
2.2-3009.1
,
2.2-3013.1
, and
30-134.1
, relating to Fraud and Abuse Whistle Blower Protection Act; Auditor of Public Accounts.

Be it enacted by the General Assembly of Virginia:

1. That §
2.2-3010
of the Code of Virginia is amended and reenacted and that the Code of Virginia is amended by adding sections numbered
2.2-3009.1
,
2.2-3013.1
, and
30-134.1
as follows:

§
2.2-3009.1
. Legislative findings; fiduciary responsibility of the Commonwealth
.

The General Assembly finds that:

1.

The Commonwealth of Virginia has a fiduciary responsibility to protect its citizens and taxpayers through the lawful and responsible stewardship of public funds;

2.

Local governments administer and expend substantial state-appropriated and state-administered funds, including funding for education, transportation, public safety, and other programs;

3.

Misuse, waste, or abuse of such funds at the local level ultimately results in financial harm to the citizens of the Commonwealth;

4.

The Fraud and Abuse Whistle Blower Protection Act is intended to safeguard public resources
and whistle blowers
at all levels of government; and

5.

Clear, accessible state-level reporting options are necessary to ensure these protections are effective when internal reporting mechanisms are ineffective or compromised.

§
2.2-3010
. Definitions.

As used in this chapter:

"Abuse" means an employer's or employee's conduct or omissions that result in substantial misuse, destruction, waste, or loss of funds or resources belonging to or derived from federal, state, or local government sources.

"Appropriate authority" means a federal, state, or local agency or organization having jurisdiction over criminal law enforcement, regulatory violations, professional conduct or ethics, or abuse
;
or a member, officer, agent, representative, or supervisory employee of the agency or organization.
The term
"Appropriate authority"
also includes the Office of the Attorney General, the Office of the State Inspector General,

the Auditor of Public Accounts,
and the General Assembly and its committees having the power and duty to investigate criminal law enforcement, regulatory violations, professional conduct or ethics, or abuse.

"Employee" means any person who is regularly employed full time on either a salaried or wage basis, whose tenure is not restricted as to temporary or provisional appointment, in the service of and whose compensation is payable, no more often than biweekly, in whole or in part, by a governmental agency.

"Employer" means a person supervising one or more employees, including the employee filing a good faith report, a superior of that supervisor, or an agent of the governmental agency.

"Good faith report" means a report of conduct defined in this chapter as wrongdoing or abuse that is made without malice and that the person making the report has reasonable cause to believe is true.

"Governmental agency" means (i) any agency, institution, board, bureau, commission, council, or instrumentality of state government in the executive branch listed in the appropriation act and any independent agency; (ii) any county, city, or town or local or regional governmental authority; and (iii) any local school division as defined in §
22.1-280.2:2
.

"
Local government employee
"
means any employee of a county, city, town, or constitutional office.

"Misconduct" means conduct or behavior by an employee that is inconsistent with state, local, or agency standards for which specific corrective or disciplinary action is warranted.

"Whistle blower" means an employee who witnesses or has evidence of wrongdoing or abuse and who makes or demonstrates by clear and convincing evidence that he is about to make a good faith report of, or testifies or is about to testify to, the wrongdoing or abuse to one of the employee's superiors, an agent of the employer, or an appropriate authority. "Whistle blower" includes a citizen of the Commonwealth who witnesses or has evidence of wrongdoing or abuse and who makes or demonstrates by clear and convincing evidence that he is about to make a good faith report of, or testifies or is about to testify to, the wrongdoing or abuse to an appropriate authority.

"Wrongdoing" means a violation, which is not of a merely technical or minimal nature, of a federal or state law or regulation,
a
local ordinance, or a formally adopted code of conduct or ethics of a professional organization designed to protect the interests of the public or employee.

§
2.2-30
13.1
. Notice and posting requirements for local governments
.

A. E
very
local government shall annually notify all
its

local government
employees in writing of their rights under this chapter, including the right to report suspected wrongdoing or abuse directly to the State Inspector General or the Auditor of Public Accounts.

B. E
very
local government shall conspicuously post information describing whistleblower rights
of local government employees
and providing current contact information for
the State Inspector General and the Auditor of Public Accounts
(i) i
n locations customarily used for required employment notices and
(ii)
o
n the local government
'
s internal employee website or intranet, if one exists.

C. The State Inspector General, in consultation with the Auditor of Public Accounts, shall develop a standardized notice and poster for use by local governments.

§
30-134.1
.
Investigation related to
the Fraud and Abuse Whistle Blower Protection Act; localities.

T
he Auditor of Public Accounts
is authorized to perform any type of audit, review, or investigati
o
n
of
the accounts and records
of
a locality
that may be requ
ired pursuant to the Fraud and Abuse Whistle Blower Protection Act (§
2.2-3009
et seq.).