A BILL to amend the Code of Virginia by adding in Chapter 27 of Title 2.2 an article numbered 12, consisting of sections numbered 2.2-2743.1 through 2.2-2743.7, relating to Virginia Workforce Development and Career Connection and Training Foundation and Fund.
HB698 creates the Virginia Workforce Development and Career Connection and Training Foundation as a public body corporate and politic to support workforce development, career connection, training, and employer services in Virginia. The bill establishes a 16-member board of trustees, with appointments split among the Governor, the Speaker of the House, and the Senate Committee on Rules, and includes ex officio voting members from the Secretary of Labor and workforce-related boards. The Foundation would be responsible for administering a new special fund, seeking donations and other revenue sources, allocating money to the Department of Workforce Development and Advancement, and developing policies for fundraising and fund management.
The bill also authorizes the Foundation to hire an executive director and other staff, with employees eligible for state retirement and health benefits, while making clear that the Virginia Public Procurement Act and Virginia Personnel Act would not apply. It requires reporting to the Commissioner of the Department, the Secretary of Labor, and the General Assembly on funding levels and services, and it places the Foundation and its employees under the State and Local Government Conflict of Interests Act. The bill creates a nonreverting special fund in the state treasury for appropriations, gifts, grants, bequests, and other contributions, and exempts the fund from state and local taxation.
If enacted, HB698 would add a new article to Title 2.2 of the Code of Virginia establishing a state-affiliated foundation and dedicated nonreverting fund for workforce development and career training. It would affect the Department of Workforce Development and Advancement by creating an additional source of supplemental funding and a separate governance structure for fundraising, allocation, and oversight. The bill would also create new statutory rules for board composition, reporting, auditing, tax treatment of donations, and employee benefits, while carving the foundation out of the normal state procurement and personnel laws.
The available context suggests the bill was introduced but did not advance, as it was left in the House Appropriations Committee. Because there are no recorded committee transcripts or votes, there is no documented floor or committee debate to indicate broad support or opposition. The bill’s structure suggests an effort to build a public-private funding mechanism for workforce programs, but the lack of recorded action beyond committee referral indicates it did not receive enough momentum to move forward.
The main potential points of contention are the governance and accountability structure of the proposed foundation. The bill gives substantial control to appointed trustees, many of whom are expected to come from large private corporations or fundraising backgrounds, which could raise concerns about private-sector influence over a public workforce fund. It also exempts the foundation from the Virginia Public Procurement Act and Virginia Personnel Act, which may prompt questions about transparency, hiring, and spending oversight. At the same time, supporters would likely emphasize the bill’s goal of expanding workforce funding through private donations and flexible management.