{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/23.1-706.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/23.1-706.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/23.1-706.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/23.1-706.html"}],"law_id":72372,"edition_id":1,"section_id":72372,"structure_id":13113,"section_number":"23.1-706","catch_line":"Standard of care; investment and administration of the Plan","history":"1994, c. 661, \u00a7 23-38.80; 1996, c. 508; 1997, cc. 785, 861; 1999, cc. 485, 518; 2000, cc. 382, 400; 2009, cc. 827, 845; 2015, cc. 227, 311; 2016, c. 588; 2019, cc. 803, 804.","full_text":"A\n\nIn acquiring, investing, reinvesting, exchanging, retaining, selling, and managing property for the benefit of the Plan, the board, and any person, investment manager, or committee to whom the board delegates any of its investment authority, shall act as trustee and shall exercise the judgment of care under the circumstances then prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but to the permanent disposition of funds, considering the probable income and the probable safety of their capital.\n\t\t\tIf the annual accounting and audit required by § 23.1-710 reveal that there are insufficient funds to ensure the actuarial soundness of the Plan, the board may adjust the terms of subsequent prepaid tuition contracts, arrange refunds for current purchasers to ensure actuarial soundness, or take such other action the board deems appropriate.B\n\nThe assets of the Plan shall be preserved, invested, and expended solely pursuant to and for the purposes of this chapter and shall not be loaned or otherwise transferred or used by the Commonwealth for any other purpose. Within the standard of care set forth in subsection A, the board and any person, investment manager, or committee to whom the board delegates any of its investment authority, may acquire and retain any kind of property and any kind of investment, including (i) debentures and other corporate obligations of foreign or domestic corporations; (ii) common or preferred stocks traded on foreign or domestic stock exchanges; (iii) not less than all of the stock or 100 percent ownership of a corporation or other entity organized by the board under the laws of the Commonwealth for the purposes of acquiring and retaining real property that the board may acquire and retain under this chapter; and (iv) securities of any open-end or closed-end management type investment company or investment trust registered under the federal Investment Company Act of 1940, as amended, including investment companies or investment trusts that, in turn, invest in the securities of such investment companies or investment trusts that persons of prudence, discretion, and intelligence acquire or retain for their own account. The board may retain property properly acquired without time limitation and without regard to its suitability for original purchase.\n\t\t\tAll provisions of this subsection shall also apply to the portion of the Plan assets attributable to savings trust account contributions and the earnings on such contributions.C\n\nThe selection of services relating to the operation and administration of the Plan, including contracts or agreements for the management, purchase, or sale of authorized investments or actuarial, recordkeeping, or consulting services, are governed by the standard of care set forth in subsection A and are not subject to the provisions of the Virginia Public Procurement Act (§ 2.2-4300 et seq.).D\n\nNo board member or person, investment manager, or committee to whom the board delegates any of its investment authority who acts in accordance with the standard of care set forth in subsection A shall be held personally liable for losses suffered by the Plan on investments made pursuant to this chapter.E\n\nTo the extent necessary to lawfully administer the Plan and in order to comply with federal, state, and local tax reporting requirements, the Plan may obtain all necessary social security account or tax identification numbers and such other data as the Plan deems necessary for such purposes, whether from a contributor, a purchaser, or another state agency.F\n\nThis section shall not be construed to prohibit the Plan’s investment, by purchase or otherwise, in bonds, notes, or other obligations of the Commonwealth or its agencies and instrumentalities.","order_by":null,"text":{"0":{"id":260699,"text":"In acquiring, investing, reinvesting, exchanging, retaining, selling, and managing property for the benefit of the Plan, the board, and any person, investment manager, or committee to whom the board delegates any of its investment authority, shall act as trustee and shall exercise the judgment of care under the circumstances then prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but to the permanent disposition of funds, considering the probable income and the probable safety of their capital.\n\t\t\tIf the annual accounting and audit required by § 23.1-710 reveal that there are insufficient funds to ensure the actuarial soundness of the Plan, the board may adjust the terms of subsequent prepaid tuition contracts, arrange refunds for current purchasers to ensure actuarial soundness, or take such other action the board deems appropriate.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":260700,"text":"The assets of the Plan shall be preserved, invested, and expended solely pursuant to and for the purposes of this chapter and shall not be loaned or otherwise transferred or used by the Commonwealth for any other purpose. Within the standard of care set forth in subsection A, the board and any person, investment manager, or committee to whom the board delegates any of its investment authority, may acquire and retain any kind of property and any kind of investment, including (i) debentures and other corporate obligations of foreign or domestic corporations; (ii) common or preferred stocks traded on foreign or domestic stock exchanges; (iii) not less than all of the stock or 100 percent ownership of a corporation or other entity organized by the board under the laws of the Commonwealth for the purposes of acquiring and retaining real property that the board may acquire and retain under this chapter; and (iv) securities of any open-end or closed-end management type investment company or investment trust registered under the federal Investment Company Act of 1940, as amended, including investment companies or investment trusts that, in turn, invest in the securities of such investment companies or investment trusts that persons of prudence, discretion, and intelligence acquire or retain for their own account. The board may retain property properly acquired without time limitation and without regard to its suitability for original purchase.\n\t\t\tAll provisions of this subsection shall also apply to the portion of the Plan assets attributable to savings trust account contributions and the earnings on such contributions.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":260701,"text":"The selection of services relating to the operation and administration of the Plan, including contracts or agreements for the management, purchase, or sale of authorized investments or actuarial, recordkeeping, or consulting services, are governed by the standard of care set forth in subsection A and are not subject to the provisions of the Virginia Public Procurement Act (§ 2.2-4300 et seq.).","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":260702,"text":"No board member or person, investment manager, or committee to whom the board delegates any of its investment authority who acts in accordance with the standard of care set forth in subsection A shall be held personally liable for losses suffered by the Plan on investments made pursuant to this chapter.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":260703,"text":"To the extent necessary to lawfully administer the Plan and in order to comply with federal, state, and local tax reporting requirements, the Plan may obtain all necessary social security account or tax identification numbers and such other data as the Plan deems necessary for such purposes, whether from a contributor, a purchaser, or another state agency.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":260704,"text":"This section shall not be construed to prohibit the Plan’s investment, by purchase or otherwise, in bonds, notes, or other obligations of the Commonwealth or its agencies and instrumentalities.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":13113,"edition_id":1,"name":"Commonwealth Savers Plan and Able Savings Trust Accounts","identifier":"7","label":"chapter","depth":3,"order_by":1,"parent_id":13112,"metadata":{},"date_created":"2026-06-26 03:44:18","date_modified":"2026-06-26 03:44:18","permalink":{"id":185235,"object_type":"structure","relational_id":13113,"identifier":"7","token":"23.1\/II\/7","url":"\/23.1\/II\/7\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13112,"edition_id":1,"name":"Students and Campus","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":13111,"metadata":{},"date_created":"2026-06-26 03:44:18","date_modified":"2026-06-26 03:44:18","permalink":{"id":184847,"object_type":"structure","relational_id":13112,"identifier":"II","token":"23.1\/II","url":"\/23.1\/II\/","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":66160,"structure_id":13113,"section_number":"23.1-700","catch_line":"Definitions","url":"\/23.1-700\/","token":"23.1\/II\/7\/23.1-700","metadata":false},{"id":78668,"structure_id":13113,"section_number":"23.1-701","catch_line":"Plan established; moneys; governing board","url":"\/23.1-701\/","token":"23.1\/II\/7\/23.1-701","metadata":false},{"id":64579,"structure_id":13113,"section_number":"23.1-702","catch_line":"Advisory committees to the board; membership; terms; qualifications; duties","url":"\/23.1-702\/","token":"23.1\/II\/7\/23.1-702","metadata":false},{"id":86791,"structure_id":13113,"section_number":"23.1-703","catch_line":"Chief executive officer of the Plan","url":"\/23.1-703\/","token":"23.1\/II\/7\/23.1-703","metadata":false},{"id":86977,"structure_id":13113,"section_number":"23.1-704","catch_line":"Powers and duties of the board","url":"\/23.1-704\/","token":"23.1\/II\/7\/23.1-704","metadata":false},{"id":77185,"structure_id":13113,"section_number":"23.1-705","catch_line":"Board actions not a debt of Commonwealth","url":"\/23.1-705\/","token":"23.1\/II\/7\/23.1-705","metadata":false},{"id":72372,"structure_id":13113,"section_number":"23.1-706","catch_line":"Standard of care; investment and administration of the Plan","url":"\/23.1-706\/","token":"23.1\/II\/7\/23.1-706","metadata":false},{"id":57132,"structure_id":13113,"section_number":"23.1-707","catch_line":"Prepaid tuition contracts and college and ABLE savings trust agreements","url":"\/23.1-707\/","token":"23.1\/II\/7\/23.1-707","metadata":false},{"id":54148,"structure_id":13113,"section_number":"23.1-707.1","catch_line":"Prepaid tuition contracts; pricing reserves; limitations","url":"\/23.1-707.1\/","token":"23.1\/II\/7\/23.1-707.1","metadata":false},{"id":62682,"structure_id":13113,"section_number":"23.1-708","catch_line":"Assets of the Plan exempt from taxation","url":"\/23.1-708\/","token":"23.1\/II\/7\/23.1-708","metadata":false},{"id":77258,"structure_id":13113,"section_number":"23.1-709","catch_line":"Annual report","url":"\/23.1-709\/","token":"23.1\/II\/7\/23.1-709","metadata":false},{"id":74025,"structure_id":13113,"section_number":"23.1-710","catch_line":"Forms and audit of accounts and records","url":"\/23.1-710\/","token":"23.1\/II\/7\/23.1-710","metadata":false},{"id":82160,"structure_id":13113,"section_number":"23.1-711","catch_line":"Admission to institutions not guaranteed; coverage limitations","url":"\/23.1-711\/","token":"23.1\/II\/7\/23.1-711","metadata":false},{"id":72325,"structure_id":13113,"section_number":"23.1-712","catch_line":"Payroll deductions","url":"\/23.1-712\/","token":"23.1\/II\/7\/23.1-712","metadata":false},{"id":84958,"structure_id":13113,"section_number":"23.1-713","catch_line":"Liberal construction of chapter","url":"\/23.1-713\/","token":"23.1\/II\/7\/23.1-713","metadata":false}],"previous_section":{"id":77185,"structure_id":13113,"section_number":"23.1-705","catch_line":"Board actions not a debt of Commonwealth","url":"\/23.1-705\/","token":"23.1\/II\/7\/23.1-705","metadata":false},"next_section":{"id":57132,"structure_id":13113,"section_number":"23.1-707","catch_line":"Prepaid tuition contracts and college and ABLE savings trust agreements","url":"\/23.1-707\/","token":"23.1\/II\/7\/23.1-707","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/23.1-706\/","history_text":"

This law was first created in 1994. The record of its establishment is cataloged in chapter 661<\/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 1996, chapter 508<\/a>; in 1997, chapters 785<\/a> and 861<\/a>; in 1999, chapters 485<\/a> and 518<\/a>; in 2000, chapters 382<\/a> and 400<\/a>; in 2009, chapters 827<\/a> and 845<\/a>; in 2015, chapters 227<\/a> and 311<\/a>; in 2016, chapter 588<\/a>; in 2019, chapters 803<\/a> and 804<\/a>.<\/p>","references":[{"id":86243,"section_number":"2.2-2750","catch_line":"Standard of care; investment and administration of the Program","order_by":null,"url":"\/2.2-2750\/"},{"id":72789,"section_number":"2.2-3711","catch_line":"(Effective July 1, 2026) Closed meetings authorized for certain limited purposes","order_by":null,"url":"\/2.2-3711\/"},{"id":64579,"section_number":"23.1-702","catch_line":"Advisory committees to the board; membership; terms; qualifications; duties","order_by":null,"url":"\/23.1-702\/"}],"refers_to":[{"id":70034,"section_number":"2.2-4300","catch_line":"Short title; purpose; declaration of intent","order_by":null,"url":"\/2.2-4300\/"},{"id":74025,"section_number":"23.1-710","catch_line":"Forms and audit of accounts and records","order_by":null,"url":"\/23.1-710\/"}],"permalink":{"id":185261,"object_type":"law","relational_id":72372,"identifier":"23.1-706","token":"23.1\/II\/7\/23.1-706","url":"\/23.1-706\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/23.1-706\/","token":"23.1\/II\/7\/23.1-706","dublin_core":{"Title":"Standard of care; investment and administration of the Plan","Type":"Text","Format":"text\/html","Identifier":"\u00a7 23.1-706","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> In acquiring, investing, reinvesting, exchanging, retaining, selling, and managing property for the benefit of the Plan<\/span>, the board<\/span>, and any person, investment manager, or committee to whom the board<\/span> delegates any of its investment authority, shall act as trustee and shall exercise the judgment<\/span> of care under the circumstances then prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but to the permanent disposition<\/span> of funds, considering the probable income and the probable safety of their capital.\n\t\t\tIf the annual accounting and audit required by § 23.1-710<\/a> reveal that there are insufficient funds to ensure the actuarial soundness of the Plan<\/span>, the board<\/span> may adjust the terms of subsequent prepaid tuition contracts<\/span>, arrange refunds for current purchasers<\/span> to ensure actuarial soundness, or take such other action the board<\/span> deems appropriate. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The assets<\/span> of the Plan<\/span> shall be preserved, invested, and expended solely pursuant to and for the purposes of this chapter and shall not be loaned or otherwise transferred or used by the Commonwealth for any other purpose. Within the standard of care set forth in subsection A, the board<\/span> and any person, investment manager, or committee to whom the board<\/span> delegates any of its investment authority, may acquire and retain any kind of property and any kind of investment, including (i) debentures and other corporate obligations of foreign or domestic corporations; (ii) common or preferred stocks traded on foreign or domestic stock exchanges; (iii) not less than all of the stock or 100 percent ownership of a corporation or other entity organized by the board<\/span> under the laws<\/span> of the Commonwealth for the purposes of acquiring and retaining real property that the board<\/span> may acquire and retain under this chapter; and (iv) securities of any open-end or closed-end management type investment company or investment trust registered under the federal Investment Company Act of 1940, as amended, including investment companies or investment trusts that, in turn, invest in the securities of such investment companies or investment trusts that persons of prudence, discretion, and intelligence acquire or retain for their own account. The board<\/span> may retain property properly acquired without time limitation and without regard to its suitability for original purchase.\n\t\t\tAll provisions of this subsection shall also apply to the portion of the Plan<\/span> assets<\/span> attributable to savings trust account<\/span> contributions and the earnings on such contributions. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The selection of services relating to the operation and administration of the Plan<\/span>, including contracts or agreements for the management, purchase, or sale of authorized investments or actuarial, recordkeeping, or consulting services, are governed by the standard of care set forth in subsection A and are not subject to the provisions of the Virginia Public Procurement Act (§ 2.2-4300<\/a> et seq.). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> No board<\/span> member or person, investment manager, or committee to whom the board<\/span> delegates any of its investment authority who acts in accordance with the standard of care set forth in subsection A shall be held personally liable for losses suffered by the Plan<\/span> on investments made pursuant to this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> To the extent necessary to lawfully administer the Plan<\/span> and in order<\/span> to comply with federal, state, and local tax reporting requirements, the Plan<\/span> may obtain all necessary social security account or tax identification numbers and such other data as the Plan<\/span> deems necessary for such purposes, whether from a contributor<\/span>, a purchaser<\/span>, or another state agency. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> This section shall not be construed to prohibit the Plan<\/span>’s investment, by purchase or otherwise, in bonds<\/span>, notes, or other obligations of the Commonwealth or its agencies and instrumentalities. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSTANDARD OF CARE; INVESTMENT AND ADMINISTRATION OF THE PLAN (\u00a7 23.1-706)\n\nA. In acquiring, investing, reinvesting, exchanging, retaining, selling, and\nmanaging property for the benefit of the Plan, the board, and any person,\ninvestment manager, or committee to whom the board delegates any of its\ninvestment authority, shall act as trustee and shall exercise the judgment of\ncare under the circumstances then prevailing that persons of prudence,\ndiscretion, and intelligence exercise in the management of their own affairs,\nnot in regard to speculation but to the permanent disposition of funds,\nconsidering the probable income and the probable safety of their capital.\n\t\t\tIf the annual accounting and audit required by § 23.1-710 reveal that\nthere are insufficient funds to ensure the actuarial soundness of the Plan, the\nboard may adjust the terms of subsequent prepaid tuition contracts, arrange\nrefunds for current purchasers to ensure actuarial soundness, or take such other\naction the board deems appropriate.\n\nB. The assets of the Plan shall be preserved, invested, and expended solely\npursuant to and for the purposes of this chapter and shall not be loaned or\notherwise transferred or used by the Commonwealth for any other purpose. Within\nthe standard of care set forth in subsection A, the board and any person,\ninvestment manager, or committee to whom the board delegates any of its\ninvestment authority, may acquire and retain any kind of property and any kind\nof investment, including (i) debentures and other corporate obligations of\nforeign or domestic corporations; (ii) common or preferred stocks traded on\nforeign or domestic stock exchanges; (iii) not less than all of the stock or 100\npercent ownership of a corporation or other entity organized by the board under\nthe laws of the Commonwealth for the purposes of acquiring and retaining real\nproperty that the board may acquire and retain under this chapter; and (iv)\nsecurities of any open-end or closed-end management type investment company or\ninvestment trust registered under the federal Investment Company Act of 1940, as\namended, including investment companies or investment trusts that, in turn,\ninvest in the securities of such investment companies or investment trusts that\npersons of prudence, discretion, and intelligence acquire or retain for their\nown account. The board may retain property properly acquired without time\nlimitation and without regard to its suitability for original purchase.\n\t\t\tAll provisions of this subsection shall also apply to the portion of the Plan\nassets attributable to savings trust account contributions and the earnings on\nsuch contributions.\n\nC. The selection of services relating to the operation and administration of the\nPlan, including contracts or agreements for the management, purchase, or sale of\nauthorized investments or actuarial, recordkeeping, or consulting services, are\ngoverned by the standard of care set forth in subsection A and are not subject\nto the provisions of the Virginia Public Procurement Act (§ 2.2-4300 et\nseq.).\n\nD. No board member or person, investment manager, or committee to whom the board\ndelegates any of its investment authority who acts in accordance with the\nstandard of care set forth in subsection A shall be held personally liable for\nlosses suffered by the Plan on investments made pursuant to this chapter.\n\nE. To the extent necessary to lawfully administer the Plan and in order to\ncomply with federal, state, and local tax reporting requirements, the Plan may\nobtain all necessary social security account or tax identification numbers and\nsuch other data as the Plan deems necessary for such purposes, whether from a\ncontributor, a purchaser, or another state agency.\n\nF. This section shall not be construed to prohibit the Plan’s investment,\nby purchase or otherwise, in bonds, notes, or other obligations of the\nCommonwealth or its agencies and instrumentalities.\n\nHISTORY: 1994, c. 661, \u00a7 23-38.80; 1996, c. 508; 1997, cc. 785, 861; 1999, cc.\n485, 518; 2000, cc. 382, 400; 2009, cc. 827, 845; 2015, cc. 227, 311; 2016, c.\n588; 2019, cc. 803, 804.","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}}