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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>56640</law_id><section_number>23.1-1006</section_number><catch_line>Management agreement; contents and scope</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><structure><unit label="title" level="1" order_by="1" identifier="23.1">Institutions of Higher Education; Other Educational and Cultural Institutions</unit><unit label="subtitle" level="2" order_by="1" identifier="III">Management and Financing</unit><unit label="chapter" level="3" order_by="1" identifier="10">Restructured Higher Education Financial and Administrative Operations Act</unit><unit label="article" level="4" order_by="1" identifier="4">Restructured Financial and Administrative Authority; Covered Institutions; Management Agreements</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> Each <span class="dictionary">covered institution</span> that complies with the requirements of this article shall have the powers set forth in this article that are expressly included in the <span class="dictionary">management agreement</span>. <a id="paragraph-207257" class="section-permalink" href="https://vacode.org/23.1-1006/#A"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> Each <span class="dictionary">management agreement</span> shall include: <a id="paragraph-207258" class="section-permalink" href="https://vacode.org/23.1-1006/#B"><i class="fa fa-link"/></a></p></section>
						<section id="B1" class="indent-1"><p><span class="prefix-number">1.</span> A copy of the <span class="dictionary">governing board</span>&#x2019;s resolution in support of a request for restructured operational authority; <a id="paragraph-207259" class="section-permalink" href="https://vacode.org/23.1-1006/#B1"><i class="fa fa-link"/></a></p></section>
						<section id="B2" class="indent-1"><p><span class="prefix-number">2.</span> The institution&#x2019;s express agreement 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&#x2019;s exercise of restructured operational authority; <a id="paragraph-207260" class="section-permalink" href="https://vacode.org/23.1-1006/#B2"><i class="fa fa-link"/></a></p></section>
						<section id="B3" class="indent-1"><p><span class="prefix-number">3.</span> The institution&#x2019;s undergraduate <span class="dictionary">Virginia student</span> enrollment, financial aid requirements and capabilities, and tuition policy for undergraduate <span class="dictionary">Virginia students</span>; and <a id="paragraph-207261" class="section-permalink" href="https://vacode.org/23.1-1006/#B3"><i class="fa fa-link"/></a></p></section>
						<section id="B4" class="indent-1"><p><span class="prefix-number">4.</span> A statement of the Governor&#x2019;s power to void the <span class="dictionary">management agreement</span> pursuant to subsection E of &#xA7; <a class="law" title="Management agreement; duration and oversight" href="/23.1-1007/">23.1-1007</a>. <a id="paragraph-207262" class="section-permalink" href="https://vacode.org/23.1-1006/#B4"><i class="fa fa-link"/></a></p></section>
						<section id="C"><p><span class="prefix-number">C.</span> There is a <span class="dictionary">presumption</span> that restructured operational authority is not included in the <span class="dictionary">management agreement</span>, and such authority shall only be granted to a <span class="dictionary">covered institution</span> if it is expressly included in the <span class="dictionary">management agreement</span>. The only implied authority that is granted to a <span class="dictionary">covered institution</span> is that which is necessary to carry out the express grant of restructured operational authority. Each <span class="dictionary">covered institution</span> shall be governed and administered in the manner provided in (i) this article but subject to the expressed terms of the <span class="dictionary">management agreement</span>, (ii) the general appropriation act, and (iii) the institution&#x2019;s <span class="dictionary">enabling statutes</span>. <a id="paragraph-207263" class="section-permalink" href="https://vacode.org/23.1-1006/#C"><i class="fa fa-link"/></a></p></section>
						<section id="D"><p><span class="prefix-number">D.</span> Except as specifically made inapplicable under this article or the express terms of a <span class="dictionary">management agreement</span>, the provisions of Title 2.2 relating generally to the operation, management, supervision, regulation, and control of public institutions of higher education are applicable to <span class="dictionary">covered institutions</span> as provided by the express terms of the <span class="dictionary">management agreement</span>. <a id="paragraph-207264" class="section-permalink" href="https://vacode.org/23.1-1006/#D"><i class="fa fa-link"/></a></p></section>
						<section id="E"><p><span class="prefix-number">E.</span> In the event of a conflict between any provision of Title 2.2 and any provision of the <span class="dictionary">management agreement</span>, the provisions of the <span class="dictionary">management agreement</span> control. In the event of a conflict between any provision of this article and an institution&#x2019;s <span class="dictionary">enabling statutes</span>, the <span class="dictionary">enabling statutes</span> control. <a id="paragraph-207265" class="section-permalink" href="https://vacode.org/23.1-1006/#E"><i class="fa fa-link"/></a></p></section>
						<section id="F"><p><span class="prefix-number">F.</span> The provisions of the State and Local Government <span class="dictionary">Conflict of Interests</span> Act (&#xA7; <a class="law" title="Policy; application; construction" href="/2.2-3100/">2.2-3100</a> et seq.) that are applicable to officers and employees of a state governmental agency shall continue to apply to the members of the <span class="dictionary">governing board</span> and the <span class="dictionary">covered employees</span> of a <span class="dictionary">covered institution</span>. <a id="paragraph-207266" class="section-permalink" href="https://vacode.org/23.1-1006/#F"><i class="fa fa-link"/></a></p></section>
						<section id="G"><p><span class="prefix-number">G.</span> A <span class="dictionary">covered institution</span>, its officers, directors, employees, and agents, and the members of its <span class="dictionary">governing board</span> are entitled to the same sovereign immunity to which they would be entitled if the institution were not governed by this article. <a id="paragraph-207267" class="section-permalink" href="https://vacode.org/23.1-1006/#G"><i class="fa fa-link"/></a></p></section>
						<section id="H"><p><span class="prefix-number">H.</span> The Virginia <span class="dictionary">Tort</span> Claims Act (&#xA7; <a class="law" title="Short title" href="/8.01-195.1/">8.01-195.1</a> et seq.) and its limitations on recoveries remain applicable to <span class="dictionary">covered institutions</span>. <a id="paragraph-207268" class="section-permalink" href="https://vacode.org/23.1-1006/#H"><i class="fa fa-link"/></a></p></section>
						<section id="I"><p><span class="prefix-number">I.</span> A <span class="dictionary">management agreement</span> with a <span class="dictionary">public institution of higher education</span> shall not grant restructured operational authority to the Virginia Cooperative Extension Service and Agricultural Experiment Station Division, the University of Virginia&#x2019;s College at Wise, the Virginia Institute of Marine Science, or an affiliated entity of the institution unless the <span class="dictionary">intent</span> to grant such authority and the degree to which such authority is granted is expressly included in the <span class="dictionary">management agreement</span>. <a id="paragraph-207269" class="section-permalink" href="https://vacode.org/23.1-1006/#I"><i class="fa fa-link"/></a></p></section>
						<section id="J"><p><span class="prefix-number">J.</span> For purposes of &#xA7;&#xA7; <a class="law" title="Endowment funds of public institutions of higher education" href="/23.1-101/">23.1-101</a>, <a class="law" title="Chief executive officer of each public institution of higher education; duties" href="/23.1-102/">23.1-102</a>, <a class="law" title="Localities; conveyance of property and appropriation of funds to Commonwealth for certain educational purposes" href="/23.1-103/">23.1-103</a>, <a class="law" title="Disposition of lost or abandoned property" href="/23.1-104/">23.1-104</a>, and <a class="law" title="Private institutions of higher education; human research review committees" href="/23.1-107/">23.1-107</a>, Chapter 2 (&#xA7; <a class="law" title="(Effective July 1, 2026) State Council of Higher Education for Virginia established; purpose; membership; terms; officers" href="/23.1-200/">23.1-200</a> et seq.), &#xA7;&#xA7; <a class="law" title="Public institutions of higher education; six-year plans; institutional partnership performance agreements" href="/23.1-306/">23.1-306</a>, <a class="law" title="Collection and dissemination of information concerning religious preferences and affiliations" href="/23.1-402/">23.1-402</a>, <a class="law" title="Access to campus and student directory provided to certain persons and groups" href="/23.1-403/">23.1-403</a>, and <a class="law" title="Retention of student birth certificates authorized" href="/23.1-404/">23.1-404</a>, Chapter 5 (&#xA7; <a class="law" title="Definitions" href="/23.1-500/">23.1-500</a> et seq.), Chapter 6 (&#xA7; <a class="law" title="Participation in and eligibility for state-supported financial aid programs" href="/23.1-600/">23.1-600</a> et seq.), Chapter 7 (&#xA7; <a class="law" title="Definitions" href="/23.1-700/">23.1-700</a> et seq.), &#xA7;&#xA7; <a class="law" title="Health histories and immunizations required; exemptions" href="/23.1-800/">23.1-800</a>, <a class="law" title="Educational program on human immunodeficiency virus infection" href="/23.1-801/">23.1-801</a>, <a class="law" title="Programs on economics education and financial literacy" href="/23.1-901/">23.1-901</a>, and <a class="law" title="Financial and administrative management standards for public institutions of higher education" href="/23.1-1001/">23.1-1001</a>, Chapter 11 (&#xA7; <a class="law" title="Definitions" href="/23.1-1100/">23.1-1100</a> et seq.), Chapter 12 (&#xA7; <a class="law" title="Definitions; findings" href="/23.1-1200/">23.1-1200</a> et seq.), subsections G, H, and I of &#xA7; <a class="law" title="Members of governing boards; removal; terms; nonvoting, advisory representatives; residency" href="/23.1-1300/">23.1-1300</a>, &#xA7; <a class="law" title="Governing boards; additional powers; voluntary early retirement" href="/23.1-1302/">23.1-1302</a>, and subdivision B of &#xA7; <a class="law" title="Governing boards; duties" href="/23.1-1303/">23.1-1303</a>, each <span class="dictionary">covered institution</span> shall remain a <span class="dictionary">public institution of higher education</span> following its conversion to a <span class="dictionary">covered institution</span> governed by this article and shall retain the authority granted and any obligations required by such provisions. <a id="paragraph-207270" class="section-permalink" href="https://vacode.org/23.1-1006/#J"><i class="fa fa-link"/></a></p></section>
						<section id="K"><p><span class="prefix-number">K.</span> State government-owned or operated and state-owned teaching hospitals that are a part of a <span class="dictionary">covered institution</span> as of the effective date of the <span class="dictionary">covered institution</span>&#x2019;s initial <span class="dictionary">management agreement</span> shall continue to be characterized as state government-owned or operated and state-owned teaching hospitals for purposes of payments under the state plan for medical assistance services adopted pursuant to &#xA7; <a class="law" title="Board to submit plan for medical assistance services to U.S. Secretary of Health and Human Services pursuant to federal law; administration of plan; contracts with health care providers" href="/32.1-325/">32.1-325</a>, provided that the <span class="dictionary">covered institution</span> commits to serve <span class="dictionary">indigent</span> and medically <span class="dictionary">indigent</span> patients. If such <span class="dictionary">covered institution</span> commits to serve <span class="dictionary">indigent</span> and medically <span class="dictionary">indigent</span> patients, the Commonwealth, through the Department of Medical Assistance Services, shall, subject to the appropriation in the current general appropriation act, continue to reimburse the full cost of the provision of care, treatment, health-related services, and educational services to <span class="dictionary">indigent</span> and medically <span class="dictionary">indigent</span> patients and continue to treat hospitals that were part of a <span class="dictionary">covered institution</span> and that were Type One Hospitals prior to the effective date of the <span class="dictionary">covered institution</span>&#x2019;s initial <span class="dictionary">management agreement</span> as Type One Hospitals for purposes of such reimbursement. <a id="paragraph-207271" class="section-permalink" href="https://vacode.org/23.1-1006/#K"><i class="fa fa-link"/></a></p></section>
						<section id="L"><p><span class="prefix-number">L.</span> Consistent with the terms of the <span class="dictionary">management agreement</span>, the <span class="dictionary">governing board</span> of each <span class="dictionary">covered institution</span> shall assume full responsibility for management of the institution, subject to the requirements and conditions set forth in this article and the <span class="dictionary">management agreement</span>, and shall be fully accountable for meeting the requirements of &#xA7;&#xA7; <a class="law" title="Assessments of the performance of public institutions of higher education" href="/23.1-206/">23.1-206</a>, <a class="law" title="Public institutions of higher education; six-year plans; institutional partnership performance agreements" href="/23.1-306/">23.1-306</a>, and <a class="law" title="Assessment and certification of institutions by the Council" href="/23.1-310/">23.1-310</a> and such other provisions as may be set forth in the <span class="dictionary">management agreement</span>. <a id="paragraph-207272" class="section-permalink" href="https://vacode.org/23.1-1006/#L"><i class="fa fa-link"/></a></p></section></text><history>2005, cc. 933, 945, &#xA7;&#xA7; 23-38.88, 23-38.91, 23-38.92, 23-38.93, 23-38.96, 23-38.97; 2006, c. 775; 2009, cc. 827, 845; 2011, cc. 828, 869; 2013, c. 482; 2014, cc. 484, 628, 815; 2016, c. 588.</history><metadata></metadata></law>
