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HB505 • 2026

Counties, cities, & towns; members of governing body, continuing personal interest in transactions.

An Act to suspend certain officers, require a study, adopt a remedial plan, and establish meeting requirements of town councils in certain towns and to amend the Code of Virginia by adding in Article 6 of Chapter 15 of Title 15.2 a section numbered 15.2-1535.1, relating to members of local governing body; continuing personal interest in certain transactions; emergency.

Crime Education
Enacted

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

Sponsor
McAuliff
Last action
2026-04-22
Official status
Acts of Assembly Chapter
Effective date
Not listed

Plain English Breakdown

The bill summary does not specify that the town manager must live in Virginia unless waived by a three-fourths majority vote of council members.

Rules for Town Councils with Populations Between 8,000 and 10,000

This law sets rules for town councils in Planning District 8 with populations between 8,000 and 10,000, including suspending officers during criminal cases, requiring studies on the town's condition, adopting plans to address needs, setting meeting requirements, and having a resident town manager.

What This Bill Does

  • Requires towns in Planning District 8 with populations between 8,000 and 10,000 to get a study from a public institution of higher education about their debt, infrastructure, utilities, and risks.
  • Towns must adopt plans based on the study's recommendations without risking their bond rating.
  • Councils can only vote on matters that are published at least three days before the meeting or approved as additional agenda items by a three-fourths majority of council members.
  • If an officer is charged with a felony, they will be suspended until the case is resolved and any related removal proceedings end.
  • The town manager must live in Virginia unless the council votes to waive this requirement.

Who It Names or Affects

  • Towns in Planning District 8 with populations between 8,000 and 10,000
  • Members of these towns' governing bodies
  • Town managers

Terms To Know

Planning District 8
A specific area in Virginia where certain towns are located.
Bond rating
A grade that shows how likely a town is to pay back money it borrows.

Limits and Unknowns

  • The rules for suspending officers and getting studies will expire on July 1, 2028.
  • This law only applies to towns with populations between 8,000 and 10,000 in Planning District 8.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB505AC

2026-03-12 • Conference

Conference Report

Plain English: JOINT CONFERENCE COMMITTEE REPORT We, the conferees, appointed by the respective bodies to consider and report upon the disagreeing vote on House Bill No.

  • JOINT CONFERENCE COMMITTEE REPORT We, the conferees, appointed by the respective bodies to consider and report upon the disagreeing vote on House Bill No.
  • 505 , report as follows: A.
  • We recommend that the Senate Amendment in the Nature of a Substitute (26108616D) be rejected.
  • B.
HB505G

2026-04-13 • Governor

Governor's Recommendation

Plain English: (HB505) GOVERNOR'S RECOMMENDATION 1.

  • (HB505) GOVERNOR'S RECOMMENDATION 1.
  • Line 5, enrolled, Title, after transactions insert ; emergency 2.
  • Line 28, enrolled, after place.
  • strike the remainder of line 28 and all of lines 29 and 30 3.
HB505H2

2026-03-12 • Conference

Conference Report Substitute

Plain English: 2026 SESSION HOUSE SUBSTITUTE 26109682D HOUSE BILL NO.

  • 2026 SESSION HOUSE SUBSTITUTE 26109682D HOUSE BILL NO.
  • 505 AMENDMENT IN THE NATURE OF A SUBSTITUTE (Proposed by the Joint Conference Committee on March 11, 2026) (Patron Prior to Substitute—Delegate McAuliff) A BILL to suspend certain officers, require a study, adopt a remedial plan, and establish meeting requirements of town councils in certain towns and to amend the Code of Virginia by adding in Article 6 of Chapter 15 of Title 15.2 a section numbered 15.2-1535.1 , relating to members of local governing body; continuing personal interest in certain transactions.
  • Be it enacted by the General Assembly of Virginia: 1.
  • That the Code of Virginia is amended by adding in Article 6 of Chapter 15 of Title 15.2 a section numbered 15.2-1535.1 as follows: § 15.2-1535.1 .

Bill History

  1. 2026-04-22 Governor

    Governor's recommendation adopted

  2. 2026-04-22 House

    Signed by Speaker

  3. 2026-04-22 Senate

    Signed by President

  4. 2026-04-22 Governor

    Approved by Governor-Chapter 1056 (effective 4/22/2026)

  5. 2026-04-22 House

    Reenrolled

  6. 2026-04-22 House

    Reenrolled bill text (HB505ER2)

  7. 2026-04-22 Governor

    Acts of Assembly Chapter text (CHAP1056)

  8. 2026-04-22 House

    House concurred in Governor's recommendation (69-Y 31-N 0-A)

  9. 2026-04-22 Senate

    Senate concurred in Governor's recommendation (19-Y 19-N 0-A)

  10. 2026-04-13 Governor

    Governor's recommendation received by House

  11. 2026-03-31 House

    Enrolled Bill communicated to Governor on March 31, 2026

  12. 2026-03-31 Governor

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

  13. 2026-03-31 House

    Signed by Speaker

  14. 2026-03-31 House

    Enrolled Bill communicated to Governor on March 31, 2026

  15. 2026-03-31 Governor

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

  16. 2026-03-30 Senate

    Signed by President

  17. 2026-03-30 House

    Enrolled

  18. 2026-03-30 House

    Enrolled

  19. 2026-03-13 Senate

    Conference report agreed to by Senate (21-Y 18-N 0-A)

  20. 2026-03-12 Conference

    Conference Report released

  21. 2026-03-12 House

    Conference report agreed to by House (69-Y 29-N 0-A)

  22. 2026-03-11 Conference

    Conference Report released

  23. 2026-03-10 Senate

    Senate Conferees: Rouse, Perry, Bennett-Parker

  24. 2026-03-10 Senate

    Conferees appointed by Senate

  25. 2026-03-09 House

    House acceded to request

  26. 2026-03-09 House

    Conferees appointed by House

  27. 2026-03-09 House

    House Conferees: McAuliff, Reid, Cherry

  28. 2026-03-06 Senate

    Senate requested conference committee

  29. 2026-03-06 Senate

    Senate insisted on amendments Block Vote (40-Y 0-N 0-A)

  30. 2026-03-04 House

    Senate substitute rejected by House (0-Y 94-N 0-A)

  31. 2026-03-02 Senate

    Read third time

  32. 2026-03-02 Senate

    Engrossed by Senate - committee substitute

  33. 2026-03-02 Privileges and Elections

    Privileges and Elections Substitute agreed to

  34. 2026-03-02 Senate

    Passed Senate with substitute (23-Y 17-N 0-A)

  35. 2026-02-27 Senate

    Read third time

  36. 2026-02-27 Senate

    Passed by for the day

  37. 2026-02-27 Senate

    Passed by for the day

  38. 2026-02-26 Senate

    Rules suspended

  39. 2026-02-26 Senate

    Rules suspended

  40. 2026-02-26 Senate

    Passed by for the day

  41. 2026-02-26 Senate

    Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

  42. 2026-02-26 Senate

    Passed by for the day Block Vote (Voice Vote)

  43. 2026-02-25 Senate

    Senate committee offered

  44. 2026-02-25 Privileges and Elections

    Committee substitute printed 26108616D-S1

  45. 2026-02-24 Privileges and Elections

    Reported from Privileges and Elections with substitute (11-Y 4-N)

  46. 2026-02-18 Senate

    Constitutional reading dispensed (on 1st reading)

  47. 2026-02-18 Privileges and Elections

    Referred to Committee on Privileges and Elections

  48. 2026-02-17 House

    Read third time and passed House (63-Y 34-N 0-A)

  49. 2026-02-16 House

    Read second time

  50. 2026-02-16 House

    committee substitute agreed to

  51. 2026-02-16 House

    Engrossed by House - committee substitute

  52. 2026-02-15 House

    Read first time

  53. 2026-02-13 Privileges and Elections

    Reported from Privileges and Elections with substitute (13-Y 8-N)

  54. 2026-02-13 Privileges and Elections

    Committee substitute printed 26107972D-H1

  55. 2026-02-12 House

    House committee offered

  56. 2026-02-09 Election Administration

    Subcommittee recommends reporting with substitute (8-Y 0-N)

  57. 2026-02-09 Election Administration

    House subcommittee offered

  58. 2026-02-06 Election Administration

    Assigned HPE sub: Election Administration

  59. 2026-01-12 House

    Prefiled and ordered printed; Offered 01-14-2026 26103307D

  60. 2026-01-12 Privileges and Elections

    Referred to Committee on Privileges and Elections

Official Summary Text

Local government; certain towns; suspension of officers, study, remedial plan, and meeting requirements.
Provides that any member of a governing body in any locality, who has been employed by any governmental agency that is a component part of and that is subject to the ultimate control of the governing body of which he is a member, is deemed to have continuing personal interest in that agency for a period of two years following the termination of such employment. The bill also requires the court, in a criminal proceeding against an officer of any town in Planning District 8 with a population between 8,000 and 10,000 alleging the commission of a felony offense, to enter an order suspending the officer pending the resolution of such proceeding and any related proceeding for the officer's removal. The bill requires any such town to also procure a study by a public institution of higher education to evaluate the condition and status of the town's debt, infrastructure, utilities, and other significant liability risks. Such town is required to adopt a plan consistent with the study to address such town's needs, as identified in the study, in a fiscally appropriate manner that does not jeopardize the town's bond rating. The bill also prohibits the town council of any such town from voting on matters that have not been properly published at least three days prior to the vote as part of a town council agenda or otherwise approved as additional agenda items or as amendments to existing agenda items by a three-fourths vote of all the members of the council at the start of the meeting. The bill requires that any full-time town manager of such town must be a resident of the Commonwealth unless the town council has waived such requirement by a majority vote. This bill is identical to SB 648 and contains an emergency clause.

Current Bill Text

Read the full stored bill text 
An Act to suspend certain officers, require a study, adopt a remedial plan, and establish meeting requirements of town councils in certain towns and to amend the Code of Virginia by adding in Article 6 of Chapter 15 of Title 15.2 a section numbered
15.2-1535.1
, relating to members of local governing body; continuing personal interest in certain transactions; emergency.
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Article 6 of Chapter 15 of Title 15.2 a section numbered
15.2-1535.1
as follows:
§
15.2-1535.1
. Members of governing body; continuing personal interest in certain transactions.
Any member of a governing body in any locality, who has been employed by any governmental agency that is a component part of and which is subject to the ultimate control of that governmental body of which he is a member, shall be deemed to have a continuing personal interest, as defined in §
2.2-3101
, in that agency for a period of two years following the termination of such employment.
2.

§ 1. Notwithstanding any provision of law to the contrary, in the event of a criminal proceeding against an officer of any town in Planning District 8 with a population between 8,000 and 10,000 according to the latest United States decennial census alleging the commission of a felony offense, the court having jurisdiction over such offense shall enter an order suspending such officer pending the resolution of such proceeding and any related proceeding under §
24.2-231
,
24.2-232
,
24.2-233
,
24.2-234
, or
24.2-234.1
of the Code of Virginia. If such offense originates in district court, such court shall have authority to issue an order pursuant to this section of this act. Upon transfer to circuit court or if such offense originates in circuit court, such circuit court shall enter an order pursuant to this section of this act on the record. The presiding court may dissolve such order if the final outcome of the felony offense is an acquittal, nolle prosequi, or dismissal, including if the offense was deferred and dismissed after a finding of facts sufficient to justify a finding of guilt.
During a suspension pursuant to this enactment, the court may appoint some suitable person to act in the officer's place.
§ 2. Any town in Planning District 8 with a population between 8,000 and 10,000 according to the latest United States decennial census shall procure a study to evaluate the condition and status of the town's debt, infrastructure, utilities, and other significant liability risks, to be performed by a public institution of higher education with a student population of at least 15,000 students in consultation with a chief administrative officer of a locality in Planning District 8 with a population of at least 500,000 according to the latest United States decennial census. The study shall make recommendations about prioritizing and identifying the needs of the town as well as any recommendations as to amendments to the town's charter. The study shall conclude no later than July 1, 2027.
§ 3. Any town in Planning District 8 with a population between 8,000 and 10,000 according to the latest United States decennial census for which a study is conducted pursuant to § 2 of this act shall adopt a plan consistent with the study to address such town's needs in a fiscally appropriate manner that does not jeopardize the town's bond rating.
§ 4. In any town in Planning District 8 with a population between 8,000 and 10,000 according to the latest United States decennial census, the town council shall only take votes on matters that have been (i) properly published at least three days prior to the vote as part of a town council agenda or (ii) otherwise approved as additional agenda items or as amendments to existing agenda items by a three-fourths vote of all the members of the council at the start of the meeting. Any resident of the town shall have standing in the general district court of the county in which the town is located to challenge a town council vote in conflict with this section or the provisions of §
2.2-3112
of the Code of Virginia, and such case shall take precedence on the docket. Any prevailing resident filing such case shall be entitled to attorney fees.
§ 5. In any town in Planning District 8 with a population between 8,000 and 10,000 according to the latest United States decennial census, any full-time town manager shall be a resident of the Commonwealth of Virginia unless the town council of such town has waived such requirement by a majority vote of the town council.
3. That an emergency exists and this act is in force from its passage.
4. That the provisions of the second enactment of this act shall expire on July 1, 2028.