                                 CODE OF VIRGINIA

MANAGEMENT AGREEMENT; CONTENTS AND SCOPE (§ 23.1-1006)

A. Each covered institution that complies with the requirements of this article
shall have the powers set forth in this article that are expressly included in
the management agreement.

B. Each management agreement shall include:

   1. A copy of the governing board&#8217;s resolution in support of a request
   for restructured operational authority;

   2. The institution&#8217;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&#8217;s exercise of
   restructured operational authority;

   3. The institution&#8217;s undergraduate Virginia student enrollment,
   financial aid requirements and capabilities, and tuition policy for
   undergraduate Virginia students; and

   4. A statement of the Governor&#8217;s power to void the management agreement
   pursuant to subsection E of &#xA7; 23.1-1007.

C. There is a presumption that restructured operational authority is not
included in the management agreement, and such authority shall only be granted
to a covered institution if it is expressly included in the management
agreement. The only implied authority that is granted to a covered institution
is that which is necessary to carry out the express grant of restructured
operational authority. Each covered institution shall be governed and
administered in the manner provided in (i) this article but subject to the
expressed terms of the management agreement, (ii) the general appropriation act,
and (iii) the institution&#8217;s enabling statutes.

D. Except as specifically made inapplicable under this article or the express
terms of a management agreement, 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 covered institutions as
provided by the express terms of the management agreement.

E. In the event of a conflict between any provision of Title 2.2 and any
provision of the management agreement, the provisions of the management
agreement control. In the event of a conflict between any provision of this
article and an institution&#8217;s enabling statutes, the enabling statutes
control.

F. The provisions of the State and Local Government Conflict of Interests Act
(&#xA7; 2.2-3100 et seq.) that are applicable to officers and employees of a
state governmental agency shall continue to apply to the members of the
governing board and the covered employees of a covered institution.

G. A covered institution, its officers, directors, employees, and agents, and
the members of its governing board are entitled to the same sovereign immunity
to which they would be entitled if the institution were not governed by this
article.

H. The Virginia Tort Claims Act (&#xA7; 8.01-195.1 et seq.) and its limitations
on recoveries remain applicable to covered institutions.

I. A management agreement with a public institution of higher education shall
not grant restructured operational authority to the Virginia Cooperative
Extension Service and Agricultural Experiment Station Division, the University
of Virginia&#8217;s College at Wise, the Virginia Institute of Marine Science,
or an affiliated entity of the institution unless the intent to grant such
authority and the degree to which such authority is granted is expressly
included in the management agreement.

J. For purposes of &#xA7;&#xA7; 23.1-101, 23.1-102, 23.1-103, 23.1-104, and
23.1-107, Chapter 2 (&#xA7; 23.1-200 et seq.), &#xA7;&#xA7; 23.1-306, 23.1-402,
23.1-403, and 23.1-404, Chapter 5 (&#xA7; 23.1-500 et seq.), Chapter 6 (&#xA7;
23.1-600 et seq.), Chapter 7 (&#xA7; 23.1-700 et seq.), &#xA7;&#xA7; 23.1-800,
23.1-801, 23.1-901, and 23.1-1001, Chapter 11 (&#xA7; 23.1-1100 et seq.),
Chapter 12 (&#xA7; 23.1-1200 et seq.), subsections G, H, and I of &#xA7;
23.1-1300, &#xA7; 23.1-1302, and subdivision B of &#xA7; 23.1-1303, each covered
institution shall remain a public institution of higher education following its
conversion to a covered institution governed by this article and shall retain
the authority granted and any obligations required by such provisions.

K. State government-owned or operated and state-owned teaching hospitals that
are a part of a covered institution as of the effective date of the covered
institution&#8217;s initial management agreement 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; 32.1-325, provided that the covered
institution commits to serve indigent and medically indigent patients. If such
covered institution commits to serve indigent and medically indigent 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 indigent and medically indigent patients
and continue to treat hospitals that were part of a covered institution and that
were Type One Hospitals prior to the effective date of the covered
institution&#8217;s initial management agreement as Type One Hospitals for
purposes of such reimbursement.

L. Consistent with the terms of the management agreement, the governing board of
each covered institution shall assume full responsibility for management of the
institution, subject to the requirements and conditions set forth in this
article and the management agreement, and shall be fully accountable for meeting
the requirements of &#xA7;&#xA7; 23.1-206, 23.1-306, and 23.1-310 and such other
provisions as may be set forth in the management agreement.

HISTORY: 2005, cc. 933, 945, §§ 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.