Higher Education Restructuring - Level II (language only)

Item 4-9.01 #1s

Language
page 659, strike lines 42 through 45; page 660, strike lines 1 through 16; page 660, before line 17 insert:
"§4-9.01 DELEGATED FUNCTIONAL AUTHORITY AND MEMORANDA OF UNDERSTANDING
A.  Pursuant to Subchapter 2 (§ 23-38.90) of the Restructured Higher Education Financial and Administrative Operations Act of 2005, Chapters 933 and 945 of the 2005 Acts of Assembly, as amended by the 2007 Session of the General Assembly in Senate Bill No. 1342, public institutions of higher education in the Commonwealth that are certified by the State Council of Higher Education for Virginia pursuant to subsection C of § 23-9.6:1.01 as having met the requirements of subsection B of § 23-38.88 are hereby eligible as follows to elect to be granted the functional authority in the operational areas of either (i) information technology or (ii) procurement as set forth in §§ 2.0 and 3.0 of  Senate Bill No. 1342; and that the governing body of each such institution shall make its election by a resolution adopted by the governing body and submitted to the Governor, with copies to the Chairmen of the House Committee on Appropriations and the Senate Committee on Finance:
1.  Information technology:
a.  George Mason University, James Madison University, Longwood University, Old Dominion University, Radford University, Virginia Commonwealth University, Virginia Military Institute, and the Virginia Community College System may elect  to be granted the information technology functional authority in a memorandum of understanding that is substantially identical to § 2.0 of  Senate Bill No. 1342, subject to  the approval of the appropriate cabinet official as designated by the Governor and approval by the Governor or his designee.  The appropriate cabinet official as designated by the Governor shall receive input from the Information Technology Investment Board prior to granting approval of the memorandum of understanding.  The Information Technology Investment Board will have 15 calendar days to comment upon receipt of the request from the Governor’s designee.  The appropriate cabinet official as designated by the Governor shall have 90 calendar days to determine whether or not to enter into a memorandum of understanding for the additional functional authority.  The appropriate cabinet official shall notify the Chairmen of the House Committee on Appropriations and the Senate Committee on Finance of the decision regarding the request and provide a copy of any executed memorandums of understanding.  
b.  Any other public institution of higher education may submit a request to the Governor to receive decentralized authority in the area of information technology based on the process that is currently available.  Any other public institution of higher education must prove able to successfully manage the decentralized authority in information technology prior to being considered for the functional authority granted in § 2.0 of Senate Bill No. 1342.  
2.  Procurement:
a  George Mason University, James Madison University, Old Dominion University, Radford University, Virginia Commonwealth University, Virginia Military Institute, Longwood University and the Virginia Community College System may elect to be granted the procurement functional authority in a memorandum of understanding that is substantially identical to § 3.0 of  Senate Bill No. 1342, subject to  the approval of the appropriate cabinet officials as identified by the Governor and approval by the Governor or his designee.   The appropriate cabinet officials as designated by the Governor shall have 90 calendar days to determine whether or not to enter into a memorandum of understanding for the additional functional authority.  The appropriate cabinet officials shall notify the Chairmen of the House Committee on Appropriations and the Senate Committee on Finance of the decision regarding the request and provide a copy of any executed memorandums of understanding.  
b. Any other public institution of higher education may submit a request to the Governor to receive decentralized authority in the area of procurement based on the process that is currently available.  Any other public institution of higher education must prove able to successfully manage the decentralized authority in procurement  prior to being considered for the functional authority granted in § 3.0 of Senate Bill No. 1342.
B.  A public institution of higher education that is granted approval for additional authority under §§ 2.0 and 3.0 of Senate Bill No. 1342 shall be subject to this section and its implementation of the functional authority granted by this section shall be subject to the reviews, assessments, and audits  as may be conducted periodically by the appropriate Cabinet Secretary or Secretaries, as designated by the Governor, or as otherwise may be required by this act or by other law.
C.  If the Governor makes a written determination that a public institution of higher education that has been designated or approved pursuant to subsection A of this section to enter into a memorandum of understanding for additional functional authority set forth in §§ 2.0 and 3.0 of Senate Bill No. 1342, is not in substantial compliance with the additional functional authority that has been granted to that institution by this act or a separate act, or that an institution that has entered into a memorandum of understanding with the Commonwealth pursuant to subsection A of this section is not in substantial compliance with the terms of that memorandum of understanding, (i) the Governor shall provide a copy of that written determination to the chairman of the governing body of the institution and to the Chairmen of the House Committee on Appropriations and the Senate Committee on Finance, and (ii) such memorandum of understanding may be revoked by the Governor or at the Governor’s option the institution shall develop and implement a plan of corrective action, satisfactory to the Governor, for purposes of coming into substantial compliance, within a timeframe set by the Governor and shall provide a copy of such corrective action plan to the Chairmen of the House Committee on Appropriations and the Senate Committee on Finance.  If the Governor determines that the institution is not yet in substantial compliance after reviewing the corrective action plan, the Governor may void the additional functional authority granted pursuant to subsection A of this section.  Upon such action by the Governor to revoke or void a memorandum of understanding, the affected public institution of higher education shall not exercise any additional functional authority granted pursuant to subsection A of this section unless and until (i) such action is reversed by an act of the General Assembly or (ii) the General Assembly re-designates the institution, or the institution enters into a subsequent memorandum of understanding with the Commonwealth, under subsection A of this section."

Explanation
(This amendment provides a process for additional operational authority for Level II Restructuring in the areas of procurement or information technology pursuant to SB 1342.)