Treasurer backs bill letting Treasury treat financial advisers as "professional services"

Delegate Talia Pope Adams presented House Bill 1308 to the committee as a limited change to the Virginia Public Procurement Act that would allow the Virginia Department of the Treasury to classify licensed investment advisers, financial advisers and insurance brokers as "professional services" for procurement purposes.

Treasurer Dave Richardson testified in support, citing the scale of funds the Treasury manages: "We have $45,000,000,000 of taxpayer money that are being, managed" and "we have $20,000,000,000 debt portfolio," and he said those responsibilities justify a procurement standard that privileges expertise and value alongside price.

Members pressed for clarity about whether the change would create a broader precedent (the so-called "Christmas tree" effect) and whether the term "adviser" refers to individuals or firms. The sponsor told senators the change applies specifically to the Department of the Treasury because of the volume of work it manages; counsel confirmed existing Code definitions cover "investment advisor" and related terms.

The committee adopted motions to report the bill and refer it to the Senate Finance Committee for further consideration.