Virginia HB 1040: VCU Health System Authority; changes relating to board of directors and chief executive officer.

Bill Text

2026 SESSION

INTRODUCED

26103333D

HOUSE BILL NO. 1040

Offered January 14, 2026

Prefiled January 14, 2026

A BILL to amend and reenact §§ 23.1-2402 and 23.1-2403 of the Code of Virginia, relating to Virginia Commonwealth University Health System Authority; board of directors; chief executive officer.

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Patron—Carr

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Referred to Committee on Education

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Be it enacted by the General Assembly of Virginia:

1. That §§ 23.1-2402 and 23.1-2403 of the Code of Virginia are amended and reenacted as follows:

§ 23.1-2402. Board of directors; membership; meetings; officers; employees.

A. The Authority shall be governed by a board of directors with a total of 21 16 members that consists of 19 13 appointed members and two three ex officio members. The 19 13 appointed members shall consist of six five nonlegislative citizen members to be appointed by the Governor, of whom two one shall be a physician-faculty members member; five four members to be appointed by the Speaker of the House of Delegates, of whom two one shall be a physician-faculty members member; three members to be appointed by the Senate Committee on Rules, of whom one shall be a physician-faculty member; and five one nonlegislative citizen members member of the board of visitors of the University to be appointed by the rector of the board of visitors of the University, all of whom who shall be members a member of the board of visitors of the University at all times while serving on the board. The President of the University and the Senior Vice-President for Health Sciences of the University, or the individual who holds such other title as subsequently may be established by the board of visitors of the University for the chief academic and administrative officer for the Health Sciences Schools of the University, and the chief executive officer of the Authority shall serve ex officio with voting privileges. The President of the University shall serve ex officio without voting privileges.

All appointed members except those who are members of the board of visitors of the University shall have demonstrated experience or expertise in business, commercial real estate, finance, health care system management, or legal affairs. Each such area of demonstrated experience or expertise shall be represented amongst such appointed members at any given time.

A majority of the 16 total members of the board shall have no direct affiliation with the University or the Authority outside of such members' service on the board.

B. The five three appointed physician-faculty members shall be faculty members of the University with hospital privileges at MCV Hospitals at all times while serving on the board.

C. The Governor, the Speaker of the House of Delegates, and the Senate Committee on Rules shall each appoint a physician-faculty members member as required pursuant to subsection A after consideration of names from lists a list submitted by the faculty physicians of the School of Medicine of the University through the Senior Vice-President for Health Sciences of the University, or the individual who holds such other title as subsequently may be established by the board of visitors of the University for the chief academic and administrative officer for the Health Sciences Schools of the University. The list shall contain at least two names for each vacancy.

D. Members shall serve for terms of three four years. Vacancies occurring other than by expiration of a term shall be filled for the unexpired term. No member shall serve for more than two consecutive three-year four-year terms; however, a member appointed to serve an unexpired term is eligible to serve two consecutive three-year four-year terms. Members who serve two consecutive three-year four-year terms are eligible for reappointment one year after the expiration of their second term. All appointments are subject to confirmation by the General Assembly. Members shall continue to hold office until their successors have been appointed and confirmed. Ex officio members shall serve a term coincident with their term of office.

E. Neither the board members member appointed from the board of visitors of the University nor the ex officio members with voting privileges shall vote on matters that require them to breach their fiduciary duties to the University or to the Authority.

F. Any member may be removed for malfeasance, misfeasance, incompetence, or gross neglect of duty by the individual or entity that appointed him or, if such appointing individual no longer holds the office creating the right of appointment, by the current holder of that office.

G. The president of the University shall serve as the chairman of the board. The board shall elect annually biennially a chairman and vice-chairman from among its membership who have served for at least two years on the board. Neither the President of the University nor any other employee of the University, employee of the Authority, member of the board of