{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/23.1-1004.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/23.1-1004.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/23.1-1004.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/23.1-1004.html"}],"law_id":72164,"edition_id":1,"section_id":72164,"structure_id":14810,"section_number":"23.1-1004","catch_line":"Management agreement; eligibility and application","history":"2005, cc. 933, 945, \u00a7\u00a7 23-38.88, 23-38.91, 23-38.97; 2006, c. 775; 2009, cc. 827, 845; 2011, cc. 828, 869; 2013, c. 482; 2014, c. 628; 2016, c. 588; 2017, c. 314; 2024, c. 217.","full_text":"A\n\nThe governing board and administration of each public institution of higher education that meets the state goals set forth in subsection A of § 23.1-1002 and meets the requirements of this article to demonstrate the ability to manage successfully the administrative and financial operations of the institution without jeopardizing the financial integrity and stability of the institution may negotiate with the Governor to develop a management agreement with the Commonwealth to exercise restructured financial and administrative authority.B\n\nNo public institution of higher education shall enter into a management agreement unless:1\n\na. Its most current and unenhanced bond rating received from Moody’s Investors Service, Inc., Standard & Poor’s, Inc., or Fitch Investor’s Services, Inc., is at least AA- (i.e., AA minus) or its equivalent, provided that such bond rating has been received within the last three years of the date that the initial management agreement is entered into; or\n\t\t\t\tb. The institution has participated in decentralization pilot programs in the areas of finance and capital outlay, demonstrated management competency in those two areas as evidenced by a written certification from the Cabinet Secretary designated by the Governor, received restructured operational authority under a memorandum of understanding pursuant to Article 3 (§ 23.1-1003 et seq.) in at least one functional area, and demonstrated management competency in that area for a period of at least two years;2\n\nAt least an absolute two-thirds of the institution’s governing board has voted in the affirmative for a resolution in support of a request for restructured operational authority under a management agreement;3\n\nThe institution submits to the Governor a written request for his approval of the management agreement that contains evidence that (i) the institution possesses the necessary administrative infrastructure, experience, and expertise to perform successfully its public educational mission as a covered institution; (ii) the institution is financially able to operate as a covered institution without jeopardizing the financial integrity and stability of the institution; (iii) the institution consistently meets the financial and administrative management standards pursuant to § 23.1-1001; and (iv) the institution’s governing board has adopted performance and accountability standards, in addition to any institutional performance benchmarks included in the general appropriation act and developed pursuant to § 23.1-206, against which its implementation of the restructured operational authority under the management agreement can be measured;4\n\nThe institution provides a copy of the written request to the Chairmen of the House Committee on Appropriations, the House Committee on Education, the Senate Committee on Finance and Appropriations, and the Senate Committee on Education and Health;5\n\nThe institution agrees to reimburse the Commonwealth for any additional costs that the Commonwealth incurs to provide health or other group insurance benefits to employees and undertake any risk management program that are attributable to the institution’s exercise of restructured operational authority. The Secretary of Finance and the Secretary of Administration, in consultation with the Virginia Retirement System and the affected institutions, shall establish procedures for determining any amounts to be paid by each institution and a mechanism for transferring the appropriate amounts directly and solely to the affected programs;6\n\nThe institution considers potential future impacts of tuition increases on the Commonwealth Savers Plan and discusses such potential impacts with parties participating in the development of the management agreement. The chief executive officer of the Commonwealth Savers Plan shall provide to the institution and such parties the Plan’s assumptions underlying the contract pricing of the program; and7\n\nThe Governor transmits a draft of any management agreement that affects insurance or benefit programs administered by the Virginia Retirement System to the Board of Trustees of the Virginia Retirement System, which shall review the relevant provisions of the management agreement to ensure compliance with the applicable provisions of Title 51.1, administrative policies and procedures, and federal regulations governing retirement plans and advise the Governor and appropriate Cabinet Secretaries of any conflicts.","order_by":null,"text":{"0":{"id":259973,"text":"The governing board and administration of each public institution of higher education that meets the state goals set forth in subsection A of § 23.1-1002 and meets the requirements of this article to demonstrate the ability to manage successfully the administrative and financial operations of the institution without jeopardizing the financial integrity and stability of the institution may negotiate with the Governor to develop a management agreement with the Commonwealth to exercise restructured financial and administrative authority.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":259974,"text":"No public institution of higher education shall enter into a management agreement unless:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":259975,"text":"a. Its most current and unenhanced bond rating received from Moody’s Investors Service, Inc., Standard & Poor’s, Inc., or Fitch Investor’s Services, Inc., is at least AA- (i.e., AA minus) or its equivalent, provided that such bond rating has been received within the last three years of the date that the initial management agreement is entered into; or\n\t\t\t\tb. The institution has participated in decentralization pilot programs in the areas of finance and capital outlay, demonstrated management competency in those two areas as evidenced by a written certification from the Cabinet Secretary designated by the Governor, received restructured operational authority under a memorandum of understanding pursuant to Article 3 (§ 23.1-1003 et seq.) in at least one functional area, and demonstrated management competency in that area for a period of at least two years;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":259976,"text":"At least an absolute two-thirds of the institution’s governing board has voted in the affirmative for a resolution in support of a request for restructured operational authority under a management agreement;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":259977,"text":"The institution submits to the Governor a written request for his approval of the management agreement that contains evidence that (i) the institution possesses the necessary administrative infrastructure, experience, and expertise to perform successfully its public educational mission as a covered institution; (ii) the institution is financially able to operate as a covered institution without jeopardizing the financial integrity and stability of the institution; (iii) the institution consistently meets the financial and administrative management standards pursuant to § 23.1-1001; and (iv) the institution’s governing board has adopted performance and accountability standards, in addition to any institutional performance benchmarks included in the general appropriation act and developed pursuant to § 23.1-206, against which its implementation of the restructured operational authority under the management agreement can be measured;","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":259978,"text":"The institution provides a copy of the written request to the Chairmen of the House Committee on Appropriations, the House Committee on Education, the Senate Committee on Finance and Appropriations, and the Senate Committee on Education and Health;","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"6":{"id":259979,"text":"The institution agrees to reimburse the Commonwealth for any additional costs that the Commonwealth incurs to provide health or other group insurance benefits to employees and undertake any risk management program that are attributable to the institution’s exercise of restructured operational authority. The Secretary of Finance and the Secretary of Administration, in consultation with the Virginia Retirement System and the affected institutions, shall establish procedures for determining any amounts to be paid by each institution and a mechanism for transferring the appropriate amounts directly and solely to the affected programs;","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"7":{"id":259980,"text":"The institution considers potential future impacts of tuition increases on the Commonwealth Savers Plan and discusses such potential impacts with parties participating in the development of the management agreement. The chief executive officer of the Commonwealth Savers Plan shall provide to the institution and such parties the Plan’s assumptions underlying the contract pricing of the program; and","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5","next_prefix":"B7"},"8":{"id":259981,"text":"The Governor transmits a draft of any management agreement that affects insurance or benefit programs administered by the Virginia Retirement System to the Board of Trustees of the Virginia Retirement System, which shall review the relevant provisions of the management agreement to ensure compliance with the applicable provisions of Title 51.1, administrative policies and procedures, and federal regulations governing retirement plans and advise the Governor and appropriate Cabinet Secretaries of any conflicts.","type":"section","prefixes":["B","7"],"prefix":"7","entire_prefix":"B7","prefix_anchor":"B7","level":2,"prior_prefix":"B6"}},"ancestry":[{"id":14810,"edition_id":1,"name":"Restructured Financial and Administrative Authority; Covered Institutions; Management Agreements","identifier":"4","label":"article","depth":4,"order_by":1,"parent_id":14809,"metadata":{},"date_created":"2026-06-26 03:50:04","date_modified":"2026-06-26 03:50:04","permalink":{"id":185539,"object_type":"structure","relational_id":14810,"identifier":"4","token":"23.1\/III\/10\/4","url":"\/23.1\/III\/10\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14809,"edition_id":1,"name":"Restructured Higher Education Financial and Administrative Operations Act","identifier":"10","label":"chapter","depth":3,"order_by":1,"parent_id":14060,"metadata":{},"date_created":"2026-06-26 03:50:04","date_modified":"2026-06-26 03:50:04","permalink":{"id":185515,"object_type":"structure","relational_id":14809,"identifier":"10","token":"23.1\/III\/10","url":"\/23.1\/III\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14060,"edition_id":1,"name":"Management and Financing","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":13111,"metadata":{},"date_created":"2026-06-26 03:46:44","date_modified":"2026-06-26 03:46:44","permalink":{"id":185513,"object_type":"structure","relational_id":14060,"identifier":"III","token":"23.1\/III","url":"\/23.1\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13111,"edition_id":1,"name":"Institutions of Higher Education; Other Educational and Cultural Institutions","identifier":"23.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:18","date_modified":"2026-06-26 03:44:18","permalink":{"id":184581,"object_type":"structure","relational_id":13111,"identifier":"23.1","token":"23.1","url":"\/23.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":72164,"structure_id":14810,"section_number":"23.1-1004","catch_line":"Management agreement; eligibility and application","url":"\/23.1-1004\/","token":"23.1\/III\/10\/4\/23.1-1004","metadata":false},{"id":83668,"structure_id":14810,"section_number":"23.1-1005","catch_line":"Approval of a management agreement","url":"\/23.1-1005\/","token":"23.1\/III\/10\/4\/23.1-1005","metadata":false},{"id":56640,"structure_id":14810,"section_number":"23.1-1006","catch_line":"Management agreement; contents and scope","url":"\/23.1-1006\/","token":"23.1\/III\/10\/4\/23.1-1006","metadata":false},{"id":63108,"structure_id":14810,"section_number":"23.1-1007","catch_line":"Management agreement; duration and oversight","url":"\/23.1-1007\/","token":"23.1\/III\/10\/4\/23.1-1007","metadata":false},{"id":58529,"structure_id":14810,"section_number":"23.1-1008","catch_line":"Covered institutions; operational authority generally","url":"\/23.1-1008\/","token":"23.1\/III\/10\/4\/23.1-1008","metadata":false},{"id":68969,"structure_id":14810,"section_number":"23.1-1009","catch_line":"Covered institutions; operational authority; projects","url":"\/23.1-1009\/","token":"23.1\/III\/10\/4\/23.1-1009","metadata":false},{"id":71430,"structure_id":14810,"section_number":"23.1-1010","catch_line":"Covered institutions; operational authority; creation of entities and participation in joint ventures","url":"\/23.1-1010\/","token":"23.1\/III\/10\/4\/23.1-1010","metadata":false},{"id":66142,"structure_id":14810,"section_number":"23.1-1011","catch_line":"Covered institutions; operational authority; campus police","url":"\/23.1-1011\/","token":"23.1\/III\/10\/4\/23.1-1011","metadata":false},{"id":69766,"structure_id":14810,"section_number":"23.1-1012","catch_line":"Covered institutions; operational authority; financial operations generally","url":"\/23.1-1012\/","token":"23.1\/III\/10\/4\/23.1-1012","metadata":false},{"id":79752,"structure_id":14810,"section_number":"23.1-1013","catch_line":"Covered institutions; operational authority; financial operations; investment of operating funds","url":"\/23.1-1013\/","token":"23.1\/III\/10\/4\/23.1-1013","metadata":false},{"id":68235,"structure_id":14810,"section_number":"23.1-1014","catch_line":"Covered institutions; operational authority; financial operations; financing and indebtedness","url":"\/23.1-1014\/","token":"23.1\/III\/10\/4\/23.1-1014","metadata":false},{"id":65904,"structure_id":14810,"section_number":"23.1-1015","catch_line":"Covered institutions; operational authority; financial operations; power to issue bonds, notes, or other obligations","url":"\/23.1-1015\/","token":"23.1\/III\/10\/4\/23.1-1015","metadata":false},{"id":86805,"structure_id":14810,"section_number":"23.1-1016","catch_line":"Covered institutions; operational authority; financial operations; capital projects","url":"\/23.1-1016\/","token":"23.1\/III\/10\/4\/23.1-1016","metadata":false},{"id":74516,"structure_id":14810,"section_number":"23.1-1017","catch_line":"Covered institutions; operational authority; procurement","url":"\/23.1-1017\/","token":"23.1\/III\/10\/4\/23.1-1017","metadata":false},{"id":79632,"structure_id":14810,"section_number":"23.1-1018","catch_line":"Covered institutions; operational authority; information technology","url":"\/23.1-1018\/","token":"23.1\/III\/10\/4\/23.1-1018","metadata":false},{"id":68739,"structure_id":14810,"section_number":"23.1-1019","catch_line":"Covered institutions; operational authority; property, grants, and loans","url":"\/23.1-1019\/","token":"23.1\/III\/10\/4\/23.1-1019","metadata":false},{"id":61212,"structure_id":14810,"section_number":"23.1-1020","catch_line":"Covered institutions; operational authority; human resources; covered employees generally","url":"\/23.1-1020\/","token":"23.1\/III\/10\/4\/23.1-1020","metadata":false},{"id":78983,"structure_id":14810,"section_number":"23.1-1021","catch_line":"Covered institutions; operational authority; human resources; establishment of a human resources program","url":"\/23.1-1021\/","token":"23.1\/III\/10\/4\/23.1-1021","metadata":false},{"id":59817,"structure_id":14810,"section_number":"23.1-1022","catch_line":"Covered institutions; operational authority; human resources; election by certain covered employees","url":"\/23.1-1022\/","token":"23.1\/III\/10\/4\/23.1-1022","metadata":false},{"id":67808,"structure_id":14810,"section_number":"23.1-1023","catch_line":"Covered institutions; operational authority; human resources; grievance procedures","url":"\/23.1-1023\/","token":"23.1\/III\/10\/4\/23.1-1023","metadata":false},{"id":75091,"structure_id":14810,"section_number":"23.1-1024","catch_line":"Covered institutions; operational authority; human resources; miscellaneous personnel matters","url":"\/23.1-1024\/","token":"23.1\/III\/10\/4\/23.1-1024","metadata":false},{"id":76407,"structure_id":14810,"section_number":"23.1-1025","catch_line":"Covered institutions; operational authority; human resources; certain insurance plans","url":"\/23.1-1025\/","token":"23.1\/III\/10\/4\/23.1-1025","metadata":false},{"id":64122,"structure_id":14810,"section_number":"23.1-1026","catch_line":"Covered institutions; operational authority; human resources; severance policies","url":"\/23.1-1026\/","token":"23.1\/III\/10\/4\/23.1-1026","metadata":false},{"id":82551,"structure_id":14810,"section_number":"23.1-1027","catch_line":"Covered institutions; duties; tuition, fees, rentals, and other charges","url":"\/23.1-1027\/","token":"23.1\/III\/10\/4\/23.1-1027","metadata":false},{"id":73063,"structure_id":14810,"section_number":"23.1-1028","catch_line":"Covered institutions; duties; leases of property","url":"\/23.1-1028\/","token":"23.1\/III\/10\/4\/23.1-1028","metadata":false}],"next_section":{"id":83668,"structure_id":14810,"section_number":"23.1-1005","catch_line":"Approval of a management agreement","url":"\/23.1-1005\/","token":"23.1\/III\/10\/4\/23.1-1005","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/23.1-1004\/","history_text":"

This law was first created in 2005. The record of its establishment is cataloged in chapters 933<\/a> and 945<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 8 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2006, chapter 775<\/a>; in 2009, chapters 827<\/a> and 845<\/a>; in 2011, chapters 828<\/a> and 869<\/a>; in 2013, chapter 482<\/a>; in 2014, chapter 628<\/a>; in 2016, chapter 588<\/a>; in 2017, chapter 314<\/a>; in 2024, chapter 217<\/a>.<\/p>","references":[{"id":57884,"section_number":"2.2-1124","catch_line":"Disposition of surplus materials","order_by":null,"url":"\/2.2-1124\/"},{"id":86857,"section_number":"2.2-1150","catch_line":"Conveyance and transfers of real property by state agencies; approval of Governor and Attorney General; notice to members of General Assembly","order_by":null,"url":"\/2.2-1150\/"},{"id":58899,"section_number":"2.2-1153","catch_line":"State agencies and institutions to notify Department of property not used or required; criteria","order_by":null,"url":"\/2.2-1153\/"},{"id":59483,"section_number":"2.2-4321","catch_line":"Debarment","order_by":null,"url":"\/2.2-4321\/"},{"id":84570,"section_number":"2.2-4379","catch_line":"Definitions","order_by":null,"url":"\/2.2-4379\/"},{"id":84746,"section_number":"23.1-1000","catch_line":"Definitions","order_by":null,"url":"\/23.1-1000\/"},{"id":66511,"section_number":"23.1-1002","catch_line":"Eligibility for restructured financial and administrative operational authority and financial benefits","order_by":null,"url":"\/23.1-1002\/"},{"id":83668,"section_number":"23.1-1005","catch_line":"Approval of a management agreement","order_by":null,"url":"\/23.1-1005\/"},{"id":68012,"section_number":"23.1-306","catch_line":"Public institutions of higher education; six-year plans; institutional partnership performance agreements","order_by":null,"url":"\/23.1-306\/"}],"refers_to":[{"id":72541,"section_number":"23.1-1001","catch_line":"Financial and administrative management standards for public institutions of higher education","order_by":null,"url":"\/23.1-1001\/"},{"id":66511,"section_number":"23.1-1002","catch_line":"Eligibility for restructured financial and administrative operational authority and financial benefits","order_by":null,"url":"\/23.1-1002\/"},{"id":72882,"section_number":"23.1-1003","catch_line":"Memoranda of understanding","order_by":null,"url":"\/23.1-1003\/"},{"id":67622,"section_number":"23.1-206","catch_line":"Assessments of the performance of public institutions of higher education","order_by":null,"url":"\/23.1-206\/"}],"permalink":{"id":185541,"object_type":"law","relational_id":72164,"identifier":"23.1-1004","token":"23.1\/III\/10\/4\/23.1-1004","url":"\/23.1-1004\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/23.1-1004\/","token":"23.1\/III\/10\/4\/23.1-1004","dublin_core":{"Title":"Management agreement; eligibility and application","Type":"Text","Format":"text\/html","Identifier":"\u00a7 23.1-1004","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The governing board<\/span> and administration of each public institution of higher education<\/span> that meets the state goals set forth in subsection A of § 23.1-1002<\/a> and meets the requirements of this article to demonstrate the ability to manage successfully the administrative and financial operations of the institution without jeopardizing the financial integrity and stability of the institution may negotiate with the Governor to develop a management agreement<\/span> with the Commonwealth to exercise restructured financial and administrative authority. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> No public institution of higher education<\/span> shall enter into a management agreement<\/span> unless: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> a. Its most current and unenhanced bond<\/span> rating received from Moody’s Investors Service, Inc., Standard & Poor’s, Inc., or Fitch Investor’s Services, Inc., is at least AA- (i.e., AA minus) or its equivalent, provided that such bond<\/span> rating has been received within the last three years of the date that the initial management agreement<\/span> is entered into; or\n\t\t\t\tb. The institution has participated in decentralization pilot programs in the areas of finance and capital outlay, demonstrated management competency in those two areas as evidenced by a written certification from the Cabinet Secretary designated by the Governor, received restructured operational authority under a memorandum<\/span> of understanding pursuant to Article 3 (§ 23.1-1003<\/a> et seq.) in at least one functional area, and demonstrated management competency in that area for a period of at least two years; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> At least an absolute two-thirds of the institution’s governing board<\/span> has voted in the affirmative for a resolution in support of a request for restructured operational authority under a management agreement<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The institution submits to the Governor a written request for his approval of the management agreement<\/span> that contains evidence<\/span> that (i) the institution possesses the necessary administrative infrastructure, experience, and expertise to perform successfully its public educational mission as a covered institution<\/span>; (ii) the institution is financially able to operate as a covered institution<\/span> without jeopardizing the financial integrity and stability of the institution; (iii) the institution consistently meets the financial and administrative management standards pursuant to § 23.1-1001<\/a>; and (iv) the institution’s governing board<\/span> has adopted performance and accountability standards, in addition to any institutional performance benchmarks included in the general appropriation act and developed pursuant to § 23.1-206<\/a>, against which its implementation of the restructured operational authority under the management agreement<\/span> can be measured; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The institution provides a copy of the written request to the Chairmen of the House Committee on Appropriations, the House Committee on Education, the Senate Committee on Finance and Appropriations, and the Senate Committee on Education and Health; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The institution agrees to reimburse the Commonwealth for any additional costs that the Commonwealth incurs to provide health or other group insurance benefits to employees and undertake any risk management program that are attributable to the institution’s exercise of restructured operational authority. The Secretary of Finance and the Secretary of Administration, in consultation with the Virginia Retirement System<\/span> and the affected institutions, shall establish procedures for determining any amounts to be paid by each institution and a mechanism for transferring the appropriate amounts directly and solely to the affected programs; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The institution considers potential future impacts of tuition increases on the Commonwealth Savers Plan and discusses such potential impacts with parties participating in the development of the management agreement<\/span>. The chief executive officer<\/span> of the Commonwealth Savers Plan shall provide to the institution and such parties the Plan’s assumptions underlying the contract<\/span> pricing of the program; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> The Governor transmits a draft of any management agreement<\/span> that affects insurance or benefit programs administered by the Virginia Retirement System<\/span> to the Board of Trustees of the Virginia Retirement System<\/span>, which shall review the relevant provisions of the management agreement<\/span> to ensure compliance with the applicable provisions of Title 51.1, administrative policies and procedures, and federal regulations governing retirement plans and advise the Governor and appropriate Cabinet Secretaries of any conflicts. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nMANAGEMENT AGREEMENT; ELIGIBILITY AND APPLICATION (\u00a7 23.1-1004)\n\nA. The governing board and administration of each public institution of higher\neducation that meets the state goals set forth in subsection A of §\n23.1-1002 and meets the requirements of this article to demonstrate the ability\nto manage successfully the administrative and financial operations of the\ninstitution without jeopardizing the financial integrity and stability of the\ninstitution may negotiate with the Governor to develop a management agreement\nwith the Commonwealth to exercise restructured financial and administrative\nauthority.\n\nB. No public institution of higher education shall enter into a management\nagreement unless:\n\n 1. a. Its most current and unenhanced bond rating received from Moody’s\n Investors Service, Inc., Standard & Poor’s, Inc., or Fitch\n Investor’s Services, Inc., is at least AA- (i.e., AA minus) or its\n equivalent, provided that such bond rating has been received within the last\n three years of the date that the initial management agreement is entered into;\n or\n \t\t\t\tb. The institution has participated in decentralization pilot programs in\n the areas of finance and capital outlay, demonstrated management competency in\n those two areas as evidenced by a written certification from the Cabinet\n Secretary designated by the Governor, received restructured operational\n authority under a memorandum of understanding pursuant to Article 3 (§\n 23.1-1003 et seq.) in at least one functional area, and demonstrated\n management competency in that area for a period of at least two years;\n\n 2. At least an absolute two-thirds of the institution’s governing board\n has voted in the affirmative for a resolution in support of a request for\n restructured operational authority under a management agreement;\n\n 3. The institution submits to the Governor a written request for his approval\n of the management agreement that contains evidence that (i) the institution\n possesses the necessary administrative infrastructure, experience, and\n expertise to perform successfully its public educational mission as a covered\n institution; (ii) the institution is financially able to operate as a covered\n institution without jeopardizing the financial integrity and stability of the\n institution; (iii) the institution consistently meets the financial and\n administrative management standards pursuant to § 23.1-1001; and (iv) the\n institution’s governing board has adopted performance and accountability\n standards, in addition to any institutional performance benchmarks included in\n the general appropriation act and developed pursuant to § 23.1-206,\n against which its implementation of the restructured operational authority\n under the management agreement can be measured;\n\n 4. The institution provides a copy of the written request to the Chairmen of\n the House Committee on Appropriations, the House Committee on Education, the\n Senate Committee on Finance and Appropriations, and the Senate Committee on\n Education and Health;\n\n 5. The institution agrees to reimburse the Commonwealth for any additional\n costs that the Commonwealth incurs to provide health or other group insurance\n benefits to employees and undertake any risk management program that are\n attributable to the institution’s exercise of restructured operational\n authority. The Secretary of Finance and the Secretary of Administration, in\n consultation with the Virginia Retirement System and the affected\n institutions, shall establish procedures for determining any amounts to be\n paid by each institution and a mechanism for transferring the appropriate\n amounts directly and solely to the affected programs;\n\n 6. The institution considers potential future impacts of tuition increases on\n the Commonwealth Savers Plan and discusses such potential impacts with parties\n participating in the development of the management agreement. The chief\n executive officer of the Commonwealth Savers Plan shall provide to the\n institution and such parties the Plan’s assumptions underlying the\n contract pricing of the program; and\n\n 7. The Governor transmits a draft of any management agreement that affects\n insurance or benefit programs administered by the Virginia Retirement System\n to the Board of Trustees of the Virginia Retirement System, which shall review\n the relevant provisions of the management agreement to ensure compliance with\n the applicable provisions of Title 51.1, administrative policies and\n procedures, and federal regulations governing retirement plans and advise the\n Governor and appropriate Cabinet Secretaries of any conflicts.\n\nHISTORY: 2005, cc. 933, 945, \u00a7\u00a7 23-38.88, 23-38.91, 23-38.97; 2006, c. 775;\n2009, cc. 827, 845; 2011, cc. 828, 869; 2013, c. 482; 2014, c. 628; 2016, c.\n588; 2017, c. 314; 2024, c. 217.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}