                                 CODE OF VIRGINIA

APPROVAL AND UPDATE OF MEMORANDUM OF UNDERSTANDING (§ 23.1-1241)

A. In order to support the goal of the creation of at least 25,000 new eligible
degrees by 2039, the amount of grants available under this chapter shall be
calculated in accordance with a memorandum of understanding negotiated with each
qualified institution. Each memorandum of understanding shall contain criteria
for eligible degrees, eligible expenses, and degree production goals for the
institution to reach by 2039.

B. Each memorandum of understanding shall be structured in accordance with and
be consistent with the objectives and purposes of this chapter and the criteria
and requirements developed by, and in the form and manner prescribed by, the
Secretary of Finance in consultation with the other designated reviewers. Such
criteria and requirements shall include:

   1. The submission of an enrollment plan by the qualified institution detailing
   the number of eligible degrees produced between July 1, 2013, and June 30,
   2018;

   2. A detailed plan of (i) how the qualified institution proposes to materially
   increase the enrollment, retention, and graduation of students pursuing
   eligible degrees, (ii) the resources necessary to accomplish such increase in
   enrollment, retention, and graduation, and (iii) how the qualified institution
   plans to track new enrollment;

   3. An accounting of the anticipated number of in-state and out-of-state
   students enrolling in eligible degree programs;

   4. The existing capacity of current eligible degree programs, and an estimate
   of the amount of funding necessary to grow the qualified institution&#8217;s
   enrollment capacity pursuant to the plan submitted pursuant to subdivision 2;

   5. Where applicable, proposed plans to partner with other qualified
   institutions to provide courses or programs that will lead to the completion
   of an eligible degree;

   6. Where applicable, existing or proposed articulation agreements with the
   Virginia Community College System to provide guaranteed admission for
   qualified students with an associate degree for transfer into an eligible
   degree program;

   7. A proposed reallocation of existing funds held by or appropriated to the
   qualified institution to meet increased enrollment, retention, and graduation
   goals in eligible degree programs; and

   8. Any other information deemed relevant.

C. The designated reviewers shall review each qualified institution&#8217;s
proposed memorandum of understanding, or amendments thereto; provide comments or
affirmation to the qualified institution by September 1 of the applicable year;
and forward the proposed memorandum of understanding and any comments or
affirmations to the Governor for approval of specific funding recommendations.

D. The Secretary of Finance, in consultation with the other designated
reviewers, shall make a recommendation regarding the amount of annual grant
payments for which a qualified institution may be eligible pursuant to its
memorandum of understanding. In determining the appropriate amount of such
grants, the Secretary and designated reviewers shall consider (i) the actual
cost of eligible degrees at the qualified institution, (ii) the number of
students enrolled in qualified degree programs adjusted for actual graduation
rates at the qualified institution, (iii) tuition revenues generated by in-state
and out-of-state students in eligible degree programs at the qualified
institution, and (iv) the reallocation of other funds held by or appropriated to
the qualified institution for eligible new degree programs. A qualified
institution shall be eligible to receive grants pursuant to this chapter, and
subject to appropriation, upon signature of the memorandum of understanding by
the Governor.

E. A qualified institution with an approved memorandum of understanding may
request an update to its memorandum of understanding no more than once annually
and no later than July 1 of each year. The designated reviewers shall review the
request and determine if an update is warranted. The Secretary of Finance, in
consultation with the other designated reviewers, may request that a qualified
institution update its agreement at any point during the year. No amendment to a
memorandum of understanding shall be final until signed by the Governor.

F. A new or amended memorandum of understanding shall be approved and signed
pursuant to subsection D no later than November 1 in order for a qualified
institution to apply for a grant in the next fiscal year.

HISTORY: 2019, cc. 638, 639.