                                 CODE OF VIRGINIA

MEDICAL CENTER MANAGEMENT; CAPITAL PROJECTS; LEASES OF PROPERTY; PROCUREMENT (§
23.1-2213)

A. The economic viability of the Medical Center, the requirement for its
specialized management and operation, and the need of the Medical Center to
participate in cooperative arrangements reflective of changes in health care
delivery, as set forth in § 23.1-2212, depend upon the ability of the
management of the Medical Center to make and promptly implement decisions
necessary to conduct the affairs of the Medical Center in an efficient,
competitive manner. It is critical to and in the best interests of the
Commonwealth that the University continues to fulfill its mission of providing
quality medical and health sciences education and related research and, through
the presence of its Medical Center, continues to provide for the care,
treatment, health-related services, and education activities associated with
Virginia patients, including indigent and medically indigent patients. Because
the ability of the University to fulfill this mission is highly dependent upon
revenues derived from providing health care through its Medical Center, and
because the ability of the Medical Center to continue to be a reliable source of
such revenues is heavily dependent upon its ability to compete with other
providers of health care that are not subject to the requirements of law
applicable to agencies of the Commonwealth, the University may implement the
following modifications to the management and operation of the affairs of the
Medical Center in order to enhance its economic viability:

   1. a. For any Medical Center capital project entirely funded by a nongeneral
   fund appropriation made by the General Assembly, all post-appropriation
   review, approval, administrative, and policy and procedure functions performed
   by the Department of General Services, the Division of Engineering and
   Buildings, the Department of Planning and Budget, and any other agency that
   supports the functions performed by these departments are delegated to the
   University, subject to the following stipulations and conditions: (i) the
   board shall develop and implement an appropriate system of policies,
   procedures, reviews, and approvals for Medical Center capital projects to
   which this subsection applies; (ii) the system so adopted shall provide for
   the review and approval of any Medical Center capital project to which this
   subsection applies to ensure that, except as provided in clause (iii), the
   cost of any such capital project does not exceed the sum appropriated for the
   project and the project otherwise complies with all requirements of the Code
   of Virginia regarding capital projects, excluding only the post-appropriation
   review, approval, administrative, and policy and procedure functions performed
   by the Department of General Services, the Division of Engineering and
   Buildings, the Department of Planning and Budget, and any other agency that
   supports the functions performed by these departments; (iii) the board may,
   during any fiscal year, approve a transfer of up to 15 percent of the total
   nongeneral fund appropriation for the Medical Center to supplement funds
   appropriated for a capital project of the Medical Center, provided that the
   board finds that the transfer is necessary to effectuate the original
   intention of the General Assembly in making the appropriation for the capital
   project in question; (iv) the University shall report to the Department of
   General Services on the status of any such capital project prior to
   commencement of construction of, and at the time of acceptance of, any such
   capital project; and (v) the University shall ensure that Building Officials
   and Code Administrators (BOCA) Code and fire safety inspections of any such
   project are conducted and such projects are inspected by the State Fire
   Marshal or his designee prior to certification for building occupancy by the
   University&#8217;s assistant state building official to whom such inspection
   responsibility has been delegated pursuant to &#xA7; 36-98.1. Nothing in this
   section shall be deemed to relieve the University of any reporting requirement
   pursuant to &#xA7; 2.2-1513. Notwithstanding the provisions of this
   subsection, the terms and structure of any financing of any capital project to
   which this subsection applies shall be approved pursuant to &#xA7; 2.2-2416.
   				b. No capital project to which this subsection applies shall be materially
   increased in size or materially changed in scope beyond the plans and
   justifications that were the basis for the project&#8217;s appropriation
   unless (i) the Governor determines that such increase in size or change in
   scope is necessary due to an emergency or (ii) the General Assembly approves
   the increase or change in a subsequent appropriation for the project. After
   construction of any such capital project has commenced, no such increase or
   change shall be made during construction unless the conditions in clause (i)
   or (ii) have been satisfied.

   2. a. The University is exempt from the provisions of &#xA7; 2.2-1149 and any
   rules, regulations, and guidelines of the Division of Engineering and
   Buildings regarding leases of real property that it enters into on behalf of
   the Medical Center and, pursuant to policies and procedures adopted by the
   board, may enter into such leases subject to the following conditions: (i) the
   lease shall be an operating lease and not a capital lease as defined in
   guidelines established by the Secretary of Finance and generally accepted
   accounting principles; (ii) the University&#8217;s decision to enter into such
   a lease shall be based upon cost, demonstrated need, and compliance with
   guidelines adopted by the board that direct that (a) competition be sought to
   the maximum practical degree, (b) all costs of occupancy be considered, and
   (c) the use of the space to be leased is necessary and efficiently planned;
   (iii) the form of the lease is approved by the Special Assistant Attorney
   General representing the University; (iv) the lease otherwise meets all
   requirements of law; (v) the leased property is certified for occupancy by the
   building official of the political subdivision in which the leased property is
   located; and (vi) upon entering such leases and upon any subsequent amendment
   of such leases, the University provides copies of all lease documents and any
   attachments to such lease documents to the Department of General Services.
   				b. Notwithstanding the provisions of &#xA7; 2.2-1155 and subdivision B 1
   of &#xA7; 23.1-1301, but subject to policies and procedures adopted by the
   board, the University may lease, for a purpose consistent with the mission of
   the Medical Center and for a term not to exceed 50 years, property in the
   possession or control of the Medical Center.
   				c. Notwithstanding the provisions of this subdivision, the terms and
   structure of any financing arrangements secured by capital leases or other
   similar lease financing agreements shall be approved pursuant to &#xA7;
   2.2-2416.

   3. a. Contracts awarded by the University on behalf of the Medical Center for
   the procurement of goods, services, including professional services,
   construction, or information technology and telecommunications in compliance
   with this subdivision are exempt from (i) the Virginia Public Procurement Act
   (&#xA7; 2.2-4300 et seq.), except as provided in this section; (ii) the
   requirements of the Division of Purchases and Supply of the Department of
   General Services as set forth in Article 3 (&#xA7; 2.2-1109 et seq.) of
   Chapter 11 of Title 2.2; (iii) the requirements of the Division of Engineering
   and Buildings as set forth in Article 4 (&#xA7; 2.2-1129 et seq.) of Chapter
   11 of Title 2.2; and (iv) the authority of the Chief Information Officer and
   the Virginia Information Technologies Agency as set forth in Chapter 20.1
   (&#xA7; 2.2-2005 et seq.) of Title 2.2 regarding the review and approval of
   contracts for (a) the construction of Medical Center capital projects and (b)
   information technology and telecommunications projects.
   				b. The University shall adopt and at all times maintain guidelines
   generally applicable to the procurement of goods, services, construction, and
   information technology and telecommunications projects by the Medical Center
   or by the University on behalf of the Medical Center. Such guidelines shall be
   based upon competitive principles and in each instance seek competition to the
   maximum practical degree. The guidelines shall (i) implement a system of
   competitive negotiation for professional services; (ii) prohibit
   discrimination against the bidder or offeror in the solicitation or award of
   contracts on the basis of the race, religion, color, sex, sexual orientation,
   gender identity, or national origin of the bidder or offeror; and (iii)
   incorporate the prompt payment principles of &#xA7;&#xA7; 2.2-4350 and
   2.2-4354 and may (a) take into account the dollar amount of the intended
   procurement, the term of the anticipated contract, and the likely extent of
   competition; (b) implement a prequalification procedure for contractors or
   products; (c) include provisions for cooperative procurement arrangements with
   private health or educational institutions or public agencies or institutions
   of the states or territories of the United States or the District of Columbia;
   and (d) implement provisions of law.
   				c. Sections 2.2-4311, 2.2-4315, 2.2-4342 (which shall not be construed to
   require compliance with the prequalification application procedures of
   subsection B of &#xA7; 2.2-4317), and 2.2-4330 and &#xA7;&#xA7; 2.2-4333
   through 2.2-4341 and 2.2-4367 through 2.2-4377 shall continue to apply to
   procurements by the Medical Center and the University on behalf of the Medical
   Center.

B. Subject to conditions that are prescribed in the budget bill pursuant to
&#xA7; 2.2-1509, the State Comptroller shall credit, on a monthly basis, to the
nongeneral fund operating cash balances of the Medical Center the imputed
interest earned by the investment of such nongeneral fund operating cash
balances, including those balances derived from patient care revenues, on
deposit with the State Treasurer.

HISTORY: 1996, cc. 933, 995, § 23-77.4; 2002, cc. 574, 602; 2004, c. 145; 2010,
cc. 136, 145; 2016, c. 588; 2020, c. 1137.