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Bill

HB 2658

Local treasurers; increases maximum amount of surety bond required.

2025 Regular Session Introduced by Barry Knight

Virginia increases maximum surety bond requirements for local treasurers to strengthen protection of public funds and account for inflation, effective July 1, 2025.

Acts of Assembly Chapter text (CHAP0098)
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Bill Summary · HB 2658

Legislative bill overview

HB 2658 increases the maximum amount of surety bond required for local county and city treasurers in Virginia. A surety bond is a financial guarantee that protects taxpayer funds by ensuring the treasurer will faithfully perform their duties. This bill raises the cap on bonding requirements to better reflect current fiscal responsibilities and inflation since previous limits were established.

Why is this important

Local treasurers handle millions in public funds annually, and surety bonds serve as a critical accountability mechanism that protects taxpayers if a treasurer misappropriates or mismanages money. Outdated bond limits may provide insufficient coverage for larger municipalities or account for inflation, creating gaps in financial protection. The increase ensures that bonding requirements remain adequate safeguards for public finances in an updated economic context.

Potential points of contention

  • Cost implications: Higher surety bond requirements may increase operational costs for local governments, potentially straining small county or municipal budgets
  • Transparency gap: The bill text doesn't specify the new maximum amount, making it unclear how significantly treasurers' bonding obligations increase
  • Disproportionate impact: Smaller jurisdictions with limited treasuries may face greater percentage-based cost increases compared to larger municipalities

Compiled from official sources — confirm details with the bill’s official record.

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