A BILL to amend the Code of Virginia by adding in Article 1 of Chapter 6 of Title 2.2 a section numbered 2.2-614.6, relating to state agency administration of federal funds; eligibility determination exemption for nonprofit organizations.
HB1369 would prohibit Virginia state agencies that administer federal funds from requiring nonprofit charitable organizations to determine, verify, or otherwise prove the eligibility of applicants for federal public benefits. The bill applies only when a nonprofit is providing a “federal public benefit,” a term it ties to the federal definition in 8 U.S.C. § 1611(c). In practical terms, the measure would shift eligibility-verification responsibilities away from nonprofit service providers and prevent state agencies from imposing those duties as a condition of administering federal funds.
The bill appears aimed at reducing administrative burdens on charitable nonprofits that help deliver federally funded assistance. It would not change the underlying federal eligibility rules for benefits, but it would limit how Virginia agencies can structure their oversight of nonprofits receiving or distributing those funds. The bill was introduced and referred to the House Committee on Rules, where it was left in committee, so it did not advance further in the legislative process.
HB1369 would add a new section to Title 2.2 of the Code of Virginia governing state agency administration of federal funds. Its main legal effect is to bar state agencies from requiring nonprofit charitable organizations to verify applicant eligibility for federal public benefits, thereby limiting state-imposed administrative conditions on nonprofits. The bill would affect state agencies that administer federal funds and nonprofit organizations that provide federally funded public benefits, while leaving the federal definition of eligibility and benefit administration intact.
There is limited recorded discussion or voting history for the bill, so sentiment must be inferred from the text and procedural outcome. The bill’s framing suggests support for nonprofit organizations and a desire to reduce compliance burdens, but its referral to and remaining in the Rules Committee indicates it did not receive enough momentum to move forward. No votes or committee transcript are available to show direct support or opposition.
The likely point of contention is whether state agencies should be allowed to require nonprofits to verify eligibility when those nonprofits distribute federal public benefits. Supporters would likely argue that such requirements create unnecessary administrative burdens and interfere with charitable service delivery, while opponents may view eligibility verification as an important safeguard against improper receipt of public benefits and a necessary condition of responsible fund administration. Because there are no transcripts or votes, the specific arguments of legislators or stakeholders are not documented in the available record.