                                 CODE OF VIRGINIA

ELIGIBILITY FOR RESTRUCTURED FINANCIAL AND ADMINISTRATIVE OPERATIONAL AUTHORITY
AND FINANCIAL BENEFITS (§ 23.1-1002)

A. The state goals for each public institution of higher education are to:

   1. Consistent with its institutional mission, provide access to higher
   education for all citizens throughout the Commonwealth, including
   underrepresented populations, and consistent with subdivision 4 of &#xA7;
   23.1-203 and in accordance with anticipated demand analysis, meet enrollment
   projections and degree estimates as agreed upon with the Council. Each such
   institution shall bear a measure of responsibility for ensuring that the
   statewide demand for enrollment is met;

   2. Consistent with &#xA7; 23.1-306, ensure that higher education remains
   affordable, regardless of individual or family income, and through a periodic
   assessment determine the impact of tuition and fee levels net of financial aid
   on applications, enrollment, and student indebtedness incurred for the payment
   of tuition, mandatory fees, and other necessary charges;

   3. Offer a broad range of undergraduate and, where appropriate, graduate
   programs consistent with its mission and assess regularly the extent to which
   the institution&#8217;s curricula and degree programs address the
   Commonwealth&#8217;s need for sufficient graduates in particular shortage
   areas, including specific academic disciplines, professions, and geographic
   regions;

   4. Ensure that the institution&#8217;s academic programs and course offerings
   maintain high academic standards by undertaking a continuous review and
   improvement of academic programs, course availability, faculty productivity,
   and other relevant factors;

   5. Improve student retention so that students progress from initial enrollment
   to a timely graduation and the number of degrees conferred increases as
   enrollment increases;

   6. Consistent with its institutional mission, develop articulation agreements
   that have uniform application to all comprehensive community colleges and meet
   appropriate general education and program requirements at the baccalaureate
   institution of higher education, provide additional opportunities for
   associate degree graduates to be admitted and enrolled, and offer dual
   enrollment programs in cooperation with high schools;

   7. Actively contribute to efforts to stimulate the economic development of the
   Commonwealth and the area in which the institution is located, and for those
   institutions subject to a management agreement pursuant to Article 4 (&#xA7;
   23.1-1004 et seq.), in areas with below-state average income levels and
   employment rates;

   8. Consistent with its institutional mission, increase the level of externally
   funded research conducted at the institution and facilitate the transfer of
   technology from university research centers to private sector companies;

   9. Work actively and cooperatively with public elementary and secondary school
   administrators, teachers, and students to improve student achievement, upgrade
   the knowledge and skills of teachers, and strengthen leadership skills of
   school administrators;

   10. Prepare a six-year financial plan consistent with &#xA7; 23.1-306;

   11. Conduct the institution&#8217;s business affairs in a manner that (i)
   helps maximize the operational efficiencies and economies of the institution
   and the Commonwealth and (ii) meets all financial and administrative
   management standards pursuant to &#xA7; 23.1-1001 specified by the Governor
   and included in the current general appropriation act, which shall include
   best practices for electronic procurement and leveraged purchasing,
   information technology, real estate portfolio management, and diversity of
   suppliers through fair and reasonable consideration of small, women-owned, and
   minority-owned business enterprises; and

   12. Seek to ensure the safety and security of students on campus.

B. Each public institution of higher education that meets the state goals set
forth in subsection A on or after August 1, 2005, may:

   1. Dispose of its surplus materials at the location where the surplus
   materials are held and retain any proceeds from such disposal as provided in
   subdivision B 14 of &#xA7; 2.2-1124;

   2. As provided in and pursuant to the conditions in subsection C of &#xA7;
   2.2-1132, contract with a building official of the locality in which
   construction is taking place and for such official to perform any inspection
   and certifications required to comply with the Uniform Statewide Building Code
   (&#xA7; 36-97 et seq.) pursuant to subsection C of &#xA7; 36-98.1;

   3. For each public institution of higher education that has in effect a signed
   memorandum of understanding with the Secretary of Administration regarding
   participation in the nongeneral fund decentralization program as set forth in
   the general appropriation act, as provided in subsection C of &#xA7; 2.2-1132,
   enter into contracts for specific construction projects without the
   preliminary review and approval of the Division of Engineering and Buildings
   of the Department of General Services, provided that such institutions are in
   compliance with the requirements of the Virginia Public Procurement Act
   (&#xA7; 2.2-4300 et seq.) and utilize the general terms and conditions for
   those forms of procurement approved by the Division of Engineering and
   Buildings and the Office of the Attorney General;

   4. Acquire easements as provided in subdivision 4 of &#xA7; 2.2-1149;

   5. Enter into an operating/income lease or capital lease pursuant to the
   conditions and provisions in subdivision 5 of &#xA7; 2.2-1149;

   6. Convey an easement pertaining to any property such institution owns or
   controls as provided in subsection C of &#xA7; 2.2-1150;

   7. In accordance with the conditions and provisions in subdivision C 2 of
   &#xA7; 2.2-1153, sell surplus real property that is possessed and controlled
   by the institution and valued at less than $5 million;

   8. For purposes of compliance with &#xA7; 2.2-4310, procure goods, services,
   and construction from a vendor that the institution has certified as a small,
   women-owned, or minority-owned business enterprise pursuant to the conditions
   and provisions in &#xA7; 2.2-1609;

   9. Be exempt from review of its budget request for information technology by
   the CIO as provided in subdivision B 3 of &#xA7; 2.2-2007.1;

   10. Adopt policies for the designation of administrative and professional
   faculty positions at the institution pursuant to the conditions and provisions
   in subsection E of &#xA7; 2.2-2901;

   11. Be exempt from reporting its purchases to the Secretary of Education,
   provided that all purchases, including sole source purchases, are placed
   through the Commonwealth&#8217;s electronic procurement system using proper
   system codes for the methods of procurement; and

   12. Utilize as methods of procurement a fixed price, design-build, or
   construction management contract in compliance with the provisions of Chapter
   43.1 (&#xA7; 2.2-4378 et seq.) of Title 2.2.

C. Each public institution of higher education that (i) has been certified
during the fiscal year by the Council pursuant to § 23.1-206 as having met the
institutional performance benchmarks for public institutions of higher education
and (ii) meets the state goals set in subsection A shall receive the following
financial benefits:

   1. Interest on the tuition and fees and other nongeneral fund Educational and
   General Revenues deposited into the state treasury by the institution, as
   provided in the general appropriation act. Such interest shall be paid from
   the general fund and shall be an appropriate and equitable amount as
   determined and certified in writing by the Secretary of Finance to the
   Comptroller by the end of each fiscal year or as soon as practicable after the
   end of such fiscal year;

   2. Any unexpended appropriations of the public institution of higher education
   at the end of the fiscal year, which shall be reappropriated and allotted for
   expenditure by the institution in the immediately following fiscal year;

   3. A pro rata amount of the rebate due to the Commonwealth on credit card
   purchases of $5,000 or less made during the fiscal year. The amount to be paid
   to each institution shall equal a pro rata share based upon its total
   transactions of $5,000 or less using the credit card that is approved for use
   by all state agencies as compared to all transactions of $5,000 or less using
   such card by all state agencies. The Comptroller shall determine the public
   institution&#8217;s pro rata share and, as provided in the general
   appropriation act, shall pay the institution by August 15 of the fiscal year
   immediately following the year of certification or as soon as practicable
   after August 15 of such fiscal year. The payment to an institution of its pro
   rata share under this subdivision shall also be applicable to other rebate or
   refund programs in effect that are similar to that of the credit card rebate
   program described in this subdivision. The Secretary of Finance shall identify
   such other rebate or refund programs and shall determine the pro rata share to
   be paid to the institution; and

   4. A rebate of any transaction fees for the prior fiscal year paid for sole
   source procurements made by the institution in accordance with subsection E of
   &#xA7; 2.2-4303 for using a vendor that is not registered with the Department
   of General Services&#8217; web-based electronic procurement program commonly
   known as &#8220;eVA,&#8221; as provided in the general appropriation act. Such
   rebate shall be certified by the Department of General Services and paid to
   each public institution by August 15 of the fiscal year immediately following
   the year of certification or as soon as practicable after August 15 of such
   fiscal year.

HISTORY: 2005, cc. 933, 945, § 23-38.88; 2006, c. 775; 2009, cc. 827, 845;
2011, cc. 828, 869; 2013, c. 482; 2014, c. 628; 2016, cc. 296, 588; 2017, cc.
699, 704.