CODE OF VIRGINIA

(EFFECTIVE OCTOBER 1, 2016) PLAN ESTABLISHED; MONEYS; GOVERNING BOARD (§
23.1-701)

A. To enhance the accessibility and affordability of higher education for all
citizens of the Commonwealth, and assist families and individuals to save for
qualified disability expenses, the Virginia College Savings Plan is established
as a body politic and corporate and an independent agency of the Commonwealth.

B. Moneys of the Plan that are contributions to savings trust accounts made
pursuant to this chapter, except as otherwise authorized or provided in this
chapter, shall be deposited as soon as practicable in a separate account or
separate accounts in banks or trust companies organized under the laws of the
Commonwealth, national banking associations, federal home loan banks, or, to the
extent permitted by law, savings institutions organized under the laws of the
Commonwealth or the United States. The savings program moneys in such accounts
shall be paid out on checks, drafts payable on demand, electronic wire
transfers, or other means authorized by officers or employees of the Plan.

C. All other moneys of the Plan, including payments received pursuant to prepaid
tuition contracts, bequests, endowments, grants from the United States
government or its agencies or instrumentalities, and any other available public
or private sources of funds shall be first deposited in the state treasury in a
special nonreverting fund (the Fund). Such moneys shall then be deposited as
soon as practicable in a separate account or separate accounts in banks or trust
companies organized under the laws of the Commonwealth, national banking
associations, federal home loan banks, or, to the extent permitted by law,
savings institutions organized under the laws of the Commonwealth or the United
States. Benefits relating to prepaid tuition contracts and Plan operating
expenses shall be paid from the Fund. Any moneys remaining in the Fund at the
end of a biennium shall not revert to the general fund but shall remain in the
Fund. Interest and income earned from the investment of such funds shall remain
in the Fund and be credited to it.

D. The Plan shall be administered by an 11-member board that consists of (i) the
director of the Council or his designee, the Chancellor of the Virginia
Community College System or his designee, the State Treasurer or his designee,
and the State Comptroller or his designee, all of whom shall serve ex officio
with voting privileges, and (ii) seven nonlegislative citizen members, four of
whom shall be appointed by the Governor, one of whom shall be appointed by the
Senate Committee on Rules, two of whom shall be appointed by the Speaker of the
House of Delegates, and all of whom shall have significant experience in
finance, accounting, law, or investment management.

E. Members appointed to the board shall serve terms of four years. Vacancies
occurring other than by expiration of a term shall be filled for the unexpired
term. No member appointed to the board shall serve more than two consecutive
four-year terms; however, a member appointed to serve an unexpired term is
eligible to serve two consecutive four-year terms immediately succeeding such
unexpired term.

F. Ex officio members of the board shall serve terms coincident with their terms
of office.

G. Members of the board shall receive no compensation but shall be reimbursed
for actual expenses incurred in the performance of their duties.

H. The board shall elect from its membership a chairman and a vice-chairman
annually.

I. A majority of the members of the board shall constitute a quorum.

HISTORY: 1994, c. 661, § 23-38.76; 1997, cc. 785, 861; 1999, cc. 485, 518;
2000, cc. 382, 400; 2009, cc. 827, 845; 2013, cc. 586, 649; 2014, cc. 23, 687;
2015, cc. 227, 311; 2016, c. 588.